As a small construction business operating in the current economic climate, it is likely that employee compensation is pretty depressed right now. Maintaining morale in such circumstances is critical to the success of any business, and made more difficult if your employees are struggling financially.
If your business is achieving a reasonable amount of success, make sure that the employees are participating, financially, in that success. The best way to accomplish that is through some form of bonus program, rather than raises, until you are sure that the success is enduring. It’s important that your employee group understands how the bonuses work and that they relate to measurable achievement on their part.
Perks & Benefits
As you progress from the one man show to a more normal business organization, you will likely find that you are in possession of most of the perks and benefits. It is likely that you have a company vehicle. You might also have very beneficial health insurance coverage and perhaps some allowances for tools, or other necessary business expenses.
Many business owners feel that business entertainment expenditures are necessary and important to the marketing efforts of their company. Again, there are several issues to address here: First, can your business afford these expenses? Do they really provide solid marketing returns, or are they just a rationalization for you to buy those season tickets?
And, finally, what is the impact on morale if the business owners are spending lavishly on such things while the business is starving for capital?
Small Business Owners
Most of us got into business for ourselves because of an entrepreneurial drive and a desire to “be our own boss.” It’s sometimes said, however, that “the only thing more overrated than natural childbirth is owning your own business!”
Most of us enjoy dealing with the challenges that go along with being our own boss and the opportunity to lead. A big element of this leadership is making sure that your “team” feels like you are in the fight with them.
What this means is that you need to be careful that your employees do not feel that your personal lifestyle is inconsistent with the business’ ability to support it. In other words, hold off buying that luxury car if the business is having trouble paying its vendors.
The kitchen and bath design and remodeling business can be a rewarding and satisfying business if you make sure that you strike the right balance between the business’ needs and your personal desires.