Profit Sharing Explained | Should You Consider It?

What if rewarding your team could also drive growth for your business? Profit sharing is a powerful tool that motivates employees, builds loyalty, and aligns your team with your company’s goals.

In this video, we’ll cover:
☑️ What profit sharing is and why it works so well for small businesses
☑️ Steps to implement profit sharing in your business
☑️ Common mistakes to avoid, like focusing only on short-term profits or unclear goals
☑️ Examples of profit-sharing structures, including tiered, goal-based, and equal payouts

Learn how to use profit sharing to inspire your team, increase collaboration, and grow your business sustainably—all while ensuring cash flow stability.

👉 Watch now to see how profit sharing could transform your business!

#ProfitSharing #EmployeeMotivation #SmallBusinessGrowth #TeamIncentives #AvalonAccounting

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🎥 CONTENTS OF THIS VIDEO

00:00 - Intro
00:19 - What is Profit Sharing?
00:44 - Why Profit Sharing Works for Small Businesses
01:29 - Common Mistakes to Avoid with Profit Sharing
01:34 - Focusing on Short-term Profit
02:15 - Not Setting Clear Goals
02:46 - Adjust as Needed
03:19 - Steps to Implement Profit Sharing in Your Business
03:24 - Step 1: Understand Your Numbers
03:51 - Step 2: Set Clear Goals
04:07 - Step 3: Celebrate Success
04:19 - Step 4: Review and Adjust Regularly
04:31 - Examples of Profit Sharing Structures for Small Businesses
04:39 - Equal Profit Sharing
05:31 - Tiered Profit Sharing
06:31 - Goal-Based Profit Sharing
07:40 - When to Pay Out Profit Sharing
07:45 - End of the Fiscal Year
08:01 - Quarterly Payouts
08:22 - After Major Milestones
08:44 - Ensure Cash Flow Stability
09:20 - Key Takeaways

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🔗 MENTIONED IN THIS VIDEO

► Avalon Accounting
https://www.avalonaccounting.ca/services

► Employee Gifts - CPA Shows You How to Avoid Costly Tax Mistakes
   • Employee Gifts - CPA Shows You How to Avoi...  

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We provide online bookkeeping, accounting services and expert financial advice for small businesses.

We are on a mission to educate small business owners through our YouTube channel, blog and free resources. Check out our links below to dive in.

► Website: https://www.avalonaccounting.ca/

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