Mike Andes explains open book management and why most business owners keep financial information secret from employees. When workers see the actual numbers, they understand the business better and often work harder to improve them.
Hey, everyone, I'm Mike Andes and today I'm going to share with you the four reasons why your boss does not want to share with you the numbers, how much income the business is making and how much money they are making. Right. Number one is the fact that the owner probably doesn't know their numbers. And if you are an owner, this is actually all the more reason to share your numbers with your team because it puts pressure on you to know what a P and L is, a profit and loss statement. Know your financial statements like a balance sheet. You know, these are important things that you need to know as a business owner. And this is no excuse why you should not have open book management. Open book management is where the employees see all the numbers. It's an open book. There's nothing hidden. They get to see all the income, all the expenses, and where the business is at financially. Number two, why is your boss not sharing the numbers? Is because they're making a bunch of money and they don't want you to see how much money they're making. I still don't think this is a good excuse as to why an owner should not share with their employees the numbers. Because if they are promoting the ability to grow with the business and they're promoting the ability to make more money or giving training to their employees, there's no reason why they shouldn't be very happy to share the fact that the business is making money and potentially share in profits to the employees to give them even more incentive to work harder and continue working for that business. So making too much money is not a good excuse to not share your numbers with your team. Another reason is potentially that you're not making any money or potentially the business is losing money and you as the owner are ashamed or don't want to share those numbers with your team. Another again, I don't think that's a good excuse to not have open book management. Because if you're not making money or you're losing money or you just got started and there's just not a lot of revenues or profits coming in, it's a great rallying cry for your team to share with them. Like, look, we're not even making any money right now. We're just trying to grind and they're going to see you working 50, 60 hours a week and then still coming in early and working hard and they know you're not making money. They see the profits are negative and that's going to be an inspiration to them to keep working and get to profitability. And actually making the business sustainable. So if you are losing money, maybe you want to share the numbers with them and say, hey, look guys, here we're at, we're losing money right now. We're growing though. These are our goals. Get them behind you. Because guess what, if you don't share that, they're going to assume completely different. They're gonna assume the worst. An employee is typically going to think that you're making a ton of money and the owner's just making money hand over fist at their expense. So they're always gonna assume the worst if you don't tell them. The fourth excuse why people don't share their numbers with their team is because they think they're gonna go and compete against them. If they give them all the information in the business, if they share their pricing and they share their expenses and their incomes and their profits, they feel like they're gonna actually create competition out of their employees. Cause their employees now have all the information required to, to go and start their own business. In my opinion, this is another bad excuse. Because the alternative is that your employees stay with you and are uninformed, don't understand how to be more profitable, don't understand how the business really works. And they feel like a cog in the machine because they don't get the overall understanding of what makes the business successful. So the worst thing that could happen is they don't have this information, they don't have the open book management, they don't have the numbers, and they stay with you for a very long time and, and never really grasp the full understanding of how the business makes money. Openbook management is going to allow your team to have the future prospects to start their own business, become more successful, make more money down the road. And if you invest in them, they will invest in you, your business and your success. I'm Mike Andes, landscapebusinesscourse.com comment below if you've implemented open book management and if you plan to in the future. Hey everyone, Mike Andes here. Thank you so much for watching the video. Make sure you click down below where at Lawn Care Media we're creating flyer templates just like these. You can make money mowing lawns, doing landscaping, and these flyers are going to help you do it. We'll see you in the next video.
