The Sharing Or The Debt
Mark is torn between doing the profit sharing routine and getting rid of the debt on his business.
QUESTION: Mark’s business has been very successful this year, but he has some debt. He wants to do some profit sharing this year, but also wants to pay off the debt. Which should he do?
ANSWER: My sharing of profits with team members theologically and philosophically is necessary to win. You can start small with the sharing while you work out of debt, because there’s less to share when you have debt payments. When you get out of debt, you’ll have more to share.
I’ll always focus on getting out of debt. It will increase cash flow, increase profits, reduce risk, and gives you more money to share with your team. You can dip your toe into the profit sharing pool at first, but you don’t have to dive right in.