There’s a question I often encounter with business owners: Should you share your company’s financial performance with your team? It can feel risky, even uncomfortable, but embracing financial transparency can transform the way your team understands and contributes to your business’s success.

Let me take you back about a decade to a client of mine who was struggling with a slim operating margin. He was frustrated by his team’s tendency to offer discounts, yet hesitant to share the true financial picture. Why? Quite simply, he didn’t want his team to know how much he was making. But there was a catch: his team held misconceptions about the business’s profitability.

When he finally mustered the courage to sit down with his team and lay out the operating margins, the response was immediate. They were shocked to learn that after covering costs, overheads, and taxes, only 5% remained. This realisation was a turning point. For the first time, his team could see that every discount had a direct impact on the business’s bottom line.

This experience brings forward a vital question: Where are the knowledge gaps within your own team? Financial transparency doesn’t mean revealing every last detail of your financials but sharing relevant information to support smarter decision-making. Key metrics like gross margin, operating margin, debtor days, and creditor days are essential for team members to understand. With this knowledge, they can see the broader context and make decisions that positively influence the business.

But sharing numbers is just the start. To truly leverage financial transparency, it’s essential to educate your team on how their actions impact these metrics. When they understand how their decisions affect the financials, you’re creating a culture of accountability and ownership. This empowerment leads to more thoughtful actions, a stronger bottom line, and a more resilient business.

So, should you share the numbers? Absolutely. It’s about more than just financial transparency; it’s about building a team that feels invested in the success of the business. And the results? Smarter decisions, a healthier business, and perhaps a bit more in the bank.

Ready to take your business to new heights? Learn how my tailored business coaching services can revolutionise your strategy and lead you to success. For more tips and expert advice, visit my homepage and explore the MYOB section, where you’ll find free resources to keep your business thriving in a competitive market.

If this content has been valuable to you and you think it could help other business owners, please subscribe to my YouTube channel. Your support allows us to reach more entrepreneurs like you. Thank you!