Motivate Your Employees Through Ownership

Motivate Your Employees Through Ownership Posted by admin in November 8th 2008   --> -->

The one indispensable component of a valuable business is its top employees. Think about it: your top employees are even more valuable than you are for the purpose of creating value for your ownership interest. The more valuable you are to the business, the less valuable the business will be when you leave it. What you need to do is leave behind key employees who add significant value to the business for several important reasons:

1. Properly motivated by a profit-based incentive plan, key employees do increase the value of your business.
2. Key employees often become potential owners when you decide to retire or move on to another venture.
3. If you decide to sell to a third party, the continued existence of a stable, motivated management team will increase the purchase price.

Key employees are not necessarily employees in key positions. Key employees think and act a lot like you, they are eager to be given responsibilities and challenges. Like you, they want to see the business grow and prosper, and they want to grow and prosper along with it. They take pride in being identified with, and contributing to, a successful business. In short, they act like owners. Their continued presence in the business is necessary if the business is to thrive.

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