Your Employees Think You Make More Money Than You Do

Your employees may think you’re making far more money than you actually are.

 

In this episode, Dominic Rubino sits down with Steve Baker from The Great Game of Business to discuss one of the biggest disconnects between business owners and their teams: understanding how the business actually makes money.

 

Steve shares how The Great Game of Business helps companies teach employees to think, act, and feel more like owners without simply handing over equity or revealing every private financial detail.

 

You’ll learn why revenue, gross margin, net profit and cash are often misunderstood, and how those misunderstandings can affect decisions throughout a company.

 

Steve also walks through the powerful “$1 exercise”: showing employees what happens to every dollar of revenue after labor, materials, overhead and other expenses.

 

For example, if a business generates a 5% net profit, it needs to produce $20 in revenue to create $1 in profit. That means a $300 expense ultimately requires $6,000 in revenue to generate the profit needed to cover it.

 

That perspective can completely change how employees think about waste, rework, equipment, profitability and their individual impact on the business.

 

In this conversation, we cover:

 

• Why employees often overestimate how much profit owners make

• Revenue vs. gross margin vs. net profit vs. cash

• How to teach employees the financial fundamentals of your business

• The $1 exercise and how to use it with your team

• Why sharing financial information doesn’t mean sharing everything

• How to get employees thinking more like owners

• Creating incentives tied to better business performance

• Why financial literacy can improve accountability and decision-making

• How stronger businesses can create long-term wealth and legacy

 

Steve also shares the remarkable origin story behind The Great Game of Business and how Jack Stack and his team used financial education to help save jobs and build a stronger company.

 

If you own a remodeling, construction, cabinetry, woodworking, contracting, or trades business and want your employees to better understand what it actually takes to make money, this episode is for you.

 

Subscribe for more conversations about building a profitable business, developing your team, and creating a company that works for you not the other way around.

 

More about Steve Baker:

Site: https://www.greatgame.com/

Youtube: https://www.youtube.com/user/GreatGameofBusiness

Instagram: https://www.instagram.com/thegreatgameofbusiness/

LinkedIn: https://www.linkedin.com/company/the-great-game-of-business/

 

Also check out:

Cabinet Maker Profit System: https://www.cabinetmakerprofitsystem.com

Profit Toolbelt: https://www.profittoolbelt.com/

Contractor Wealth System: https://www.contractorwealthsystem.com/

 

DON'T FORGET TO SUBSCRIBE:  @Cabinetmakerprofitsystemcom   @profittoolbelt4527

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