Saturday, April 20, 2024

Empowering Your Business: The Power of Incentivized Compensation


Intricacies of purchasing a business and the strategic importance of hiring the right managers to steer its course. Building upon that foundation, let's delve deeper into the crucial aspect of incentivizing your workforce to ensure their interests are aligned with the company's objectives.

Imagine this scenario: Your business operates in a sales-centric environment where hourly wages have been the norm. While this model may have served its purpose in the past, dwindling margins necessitate a paradigm shift. Enter the era of commission-based structures.

Allow me to illustrate this with a real-world example of a business that underwent a transformative change by reevaluating its approach to hiring and compensating its workforce. Previously, they relied on a large team of hourly-wage employees to handle customer interactions, with the hope that sales would cover the costs. However, as margins tightened, profitability became increasingly elusive.

Recognizing the need for change, they transitioned to a commission-based sales force, granting employees greater autonomy and flexibility in their work arrangements. No longer confined to the traditional office setting, employees were empowered to work from home or wherever they pleased, driven by the promise of earning based on their performance.

The results were nothing short of extraordinary. By aligning compensation with performance, the company attracted a new breed of motivated, self-directed individuals who thrived on the opportunity to control their earning potential. Freed from the constraints of hourly wages, employees embraced their roles with renewed vigor, leveraging their networks and creativity to drive sales and revenue.

But the benefits of incentivized compensation extend beyond the realm of sales. Whether it's frontline customer service or backend operations, aligning employee interests with company goals fosters a culture of accountability and excellence. By rewarding initiative and results, businesses cultivate a workforce driven by ambition and passion, propelling them towards collective success.

However, it's crucial to tread carefully when implementing incentive structures. Lessons learned from past missteps, such as the Wells Fargo scandal, underscore the importance of maintaining integrity and ethical conduct at all times. Incentives should never incentivize unethical behavior, as this can erode trust and tarnish the reputation of the organization.

In closing, the journey to aligning operator interests with company goals is one paved with innovation, adaptability, and foresight. By embracing the power of incentivized compensation and fostering a culture of excellence, businesses can unlock the full potential of their workforce, driving sustained growth and prosperity.

I invite you to share your thoughts and experiences on this topic in the comments below. Let's continue the conversation and learn from each other's insights.

Download my incentive-compensation checklist here-> DOWNLOAD

Never miss any of my new videos by making sure you’re on my email list. Join now at 


David Barnett

Wednesday, April 17, 2024

Sell a customer list

***New Video Alert!

What if you have a very small business?

Even just yourself.

How can you go about getting the best value for your biggest asset?

Your customer list.

I explore it in this week’s video here: 


See you over on YouTube

David C Barnett


Saturday, April 13, 2024

Delving into the Entrepreneurial Journey of Ryan Duffy's Franchise Venture

Today's story originates from a unique sale involving a Ryan Duffy’s franchise in Saint John, New Brunswick, intricately linked to the legendary creation of the Donair in Halifax, Nova Scotia.

This particular deal was structured through seller financing for $400,000, highlighting the often complex and underexplored aspects of buying businesses. Unfortunately, the new owner defaulted on payments, leading to legal actions and the establishment's eventual closure. This situation sheds light on the risks of seller financing and the importance of realistic, sustainable negotiation terms.

From this transaction, we can glean several critical lessons for prospective business buyers. First, the importance of due diligence cannot be overstated. Understanding the financial mechanisms and terms of a deal is crucial. Secondly, the art of negotiation is key—terms should be fair and manageable. Finally, the story underscores the unpredictable nature of business ownership and the need for careful financial planning.

Remember, knowledge is your best asset in navigating the business world. Stay informed, stay engaged, and never underestimate the value of a well-negotiated deal. Cheers to your business success, and feel free to share your experiences and questions. Let’s keep learning together.

Never miss any of my small business content by ensuring that you’re on my email list. Sign up at 

Wednesday, April 10, 2024

Grow your SMB


***New Video Alert! What does it cost to grow a small business? Where do you start? More sales? Run some advertising? You start with a plan. Watch. Watch this week’s video here: v Cheers See you over on YouTube David C Barnett

Saturday, April 6, 2024

Unlocking Success: The Power of Business Systems

This week I've been asked a question by Anton a Few Years Ago, just give me more videos about business systems. So I'm gonna do just that.

Firstly, it's crucial to understand that every functioning business inherently operates on systems. Whether it's handling customer transactions, managing workflows, or delivering services, systems form the backbone of operational efficiency. But here's the kicker: it's not just about having systems in place; it's about documenting them comprehensively.

Imagine a scenario where anyone, from a new employee to a seasoned manager, can seamlessly step in and understand how things work. That's the power of documented systems. Whether it's a detailed manual, an instructional video, or a simple checklist, effective documentation ensures clarity and consistency in execution.

When clients reach out for assistance, I don’t leave anything to chance. From the initial inquiry to the final service delivery, each step is meticulously outlined and communicated. By documenting both internal processes and client expectations, I ensures a smooth and transparent experience for all parties involved.

But why stop there? Documenting processes isn't just about clarity; it's about accountability. By tracking every action and milestone, businesses can hold employees responsible for their tasks. Whether it's initialing completed assignments or signing off on deliverables, accountability loops ensure that standards are met and deviations are addressed promptly.

Moreover, documented systems pave the way for continuous improvement. By tracking performance and identifying bottlenecks, businesses can refine their processes to boost efficiency and productivity. It's a cycle of optimization that fuels growth and success.

My journey with business systems isn't just theoretical; it's grounded in real-world experience. From running a junk removal business to coaching aspiring entrepreneurs, I witnessed firsthand the transformative power of well-documented systems. And now, I’m sharing my insights and expertise through courses like "Build a Business that People Will Wanna Buy," empowering small business owners to implement effective systems and unlock their full potential.

With that, let's embrace the journey of business systemization and chart a course towards success. Until next time, stay inspired, stay informed, and keep thriving in your entrepreneurial endeavors.

Be sure to never miss any of my latest content by joining my email list at 

Download our FREE business systems visioning tool. Click here.

Wednesday, April 3, 2024

IP and Brand value in small business


***New Video Alert!

So, is a 100-year-old company with a well-known brand worth more?

What about if there are over 1000 names on the past client list?

Does a special trade secret make a business worth more?

Today, we uncover value drivers that many sellers love to tell you about…

Watch this week’s video here: 


See you over on YouTube

David C Barnett

Saturday, March 30, 2024

Unlocking Business Success: The Power of Staged Buyouts for Long-Term Seller Involvement

 Today, I'm diving into an intriguing question from a viewer years ago– what if you don't have enough capital to buy a business, and you want the seller to stay involved for the long haul? The solution lies in the art of staged buyouts. Check the YouTube video here:

Imagine a scenario where the business in question isn't a small entity but has a significant workforce, say around 10 to 12 employees – perhaps a small car dealership. In this staged buyout strategy, the buyer initiates the process by using the available funds to acquire a small percentage of the company, let's say a 5% stake. Over the years, as the business turns a profit, dividends are issued. However, rather than reaching the minority shareholder, these dividends are redirected to purchase additional shares from the seller.

This gradual approach offers several benefits. Firstly, it facilitates a mentor-mentee relationship between the buyer and the seller, allowing for a seamless transfer of knowledge about the business operations. Secondly, it ensures that the seller receives excellent value for their business. A pre-established buy-sell agreement outlines the valuation formula for shares, and as the company thrives, the value increases, resulting in a higher price for the seller.

More importantly, this staged buyout provides the seller with a secure exit strategy, mitigating the risks associated with unforeseen circumstances. Whether it's a personal crisis or a planned retirement, the exit plan is locked in, offering flexibility and control over the transition.

Traditionally, buyers would acquire up to 49% of the shares through this staged process, with the remaining shares purchased in one transaction. While this might involve securing a loan from a bank, the buyer's track record within the business, coupled with a profitable operation and issued dividends, makes securing financing much easier with most lenders.

For this strategy to succeed, a well-structured business with defined roles, responsibilities, and profitability is essential. This ensures a smooth collaboration between the buyer and seller without constant interference.

If you're looking to enhance your business setup and learn effective exit planning strategies, consider exploring my Small Business Systems Course and Exit Planning Program. 

As we delve into the exciting prospects of staged buyouts, keep in mind the importance of business discipline and profitability for a seamless transition. 

Cheers to your success, and see you next week!

David C. Barnett