Team members often are not aware of all the expenses it takes to run an organization. In addition, many are unaware how they personally can support the financial health of the organization and thus the potential for raises, additional support staff, better equipment etc.

To create a tangible, accurate way to explain your finances to your team members, follow these steps:
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1. Schedule an all-team meeting.


2. Get one hundred one dollar bills.
 
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3. On a flip chart or virtual white board have prepared two separate pieces - first, a break down of how $100 comes in to your organization using a % for each revenue stream and then secondly, a break down in % of all your expenses.
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4. In the meeting, first share how the $100 comes into the organization, X for this service, X for this product etc. until it equals 100.
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5. Then actually or virtually hand out the dollar bills to team members based on each expense - until all of the dollars have been handed out except for profit, saying for example:

• Paul, you represent our utilities you receive X number of dollars
• Marika, you represent our insurance, you receive X
• Miguel you represent our marketing, you receive X
• Lastly do payroll - Anne you represent our payroll and benefits

X of course being equal to the % that expense reflects in your Profit and Loss statement.

(Pro-Tip: include owner compensation in payroll.)
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6. Then show the team how much profit is left. Explain that the profit has to be used to pay off debt, create savings, as well as be reinvested in the organization for it to grow. It's from here that funds for additional support staff, bonuses, better equipment etc. come from.
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7. Also empower team members to participate in supporting the financial health of the company by sharing which numbers they can impact directly through their efforts (to make or save the organization money) and which ones they can't. You can also share which offerings are your "cash cows" and "loss leaders" so they can better understand some of the strategy behind how business decisions get made.
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This exercise is powerful to help your team members see their role in helping the organization in being financially successful and understand the top brass doesn't go home with all the money from customers minus the team's salaries. In addition this also helps team members be more compassionate when the organization cannot afford what would seem like a painless expense.

Pro-Tip: Make sure you share why the money matters.

Here's to deepening a sense of feeling included and "in the know" by sharing the financials!