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The Focus Course

Profit Sharing and Bonus Systems

Here is a short overview of the system I use for profit sharing, end-of-year bonuses, and team reviews within my company.

Year-end bonuses use used to stress me out. And I would spend several additional evenings working in December to figure it all out each year.

When I realized that each December I was making the same decisions over and over, I stopped and decided to implement a clearer system.

Overview of our Profit Sharing system:

  • Employee year-end bonuses are based on three factors: (1) employee performance & contributions; (2) employee salary; and (3) company revenue for the year.

  • Bonuses are paid in February the following calendar year. A flat bonus advance is given out on Nov 30 because holidays. ($1,000 for full-time and $500 for part-time.)

  • Pay raises and other salary conversations happen in February of the following year 
(not December).

  • There is clear documentation of what is expected of each employee for their performance and contributions.

  • There is a clear documentation of what your bonus amount will be based on company revenue and your salary.

  • Employees are aware of the business’ YTD revenue because each cycle we discuss revenue targets and share total numbers, so there are no surprises.

To get the full breakdown, check out the attached PDF.


Download the Profit Sharing System (PDF)

Run your full-time business working part-time hours

Focus Like a Boss is a premium coaching program for small business owners and CEOs who want to reduce their working hours.

  • Build your Business Mission Map and get clear on why you exist (Core Focus), where you’re going (Goals), and what you are doing about it (Strategy).
  • Design your Million-Dollar Schedule that will protect your time as the boss to focus on the critical actions that grow your business, while also allowing you the margin you want to live your dream week, every week.

(Full details here.)

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