It sounds simple, but positive reinforcement can result in big profits for your business.

I realized this as my daughter and I were driving into town and were about to fly by this speed limit sign. When you are over the speed limit, the sign frowns at you. When you are within the speed limit, the sign smiles. I think you know which one I was going for. For me, it was a small reminder about a big way to drive profitability in our businesses.

As an entrepreneur you know that there isn’t a one size fits all formula to having the most profitable business. But, one thing I have seen over and over is that positive reinforcement works when it comes to increasing profits.

Sounds a bit elementary, right? Perhaps, but let’s face it – human nature determines most of our behaviors and many behaviors are based on how we feel. When a desired behavior is rewarded, the behavior is encouraged to be repeated.

Eureka! (I know, thanks Dr. Michalowicz. You’re welcome.)

Entrepreneurs – you are leaders. As leaders it’s your job to intentionally acknowledge and motivate your employees and customers alike in order to drive profits.

Since I’m not talking about a chore chart and a cup of marbles as a reward here, let’s look at how using positive reinforcement creates profit.

Positive reinforcement with employees

• Fulfilled employees are productive employees. (Sorry team, I promise I am not manipulating you – I really do like you.) Practicing positive reinforcement with your employees motivates them and therefore boosts productivity. The end. Maybe I didn’t always practice this, but as the years went on and my businesses grew I saw first hand how positive reinforcement is so impactful. On average we spend ⅓ of our lives at work, and we want that time to be meaningful. A solid leader will make an employee feel their time is well spent.
• Work/life balance and monetary incentives are always good ways to practice positive reinforcement, sure, but remember daily morale goes beyond the dollar. When I see something accomplished that I like, I let my team know. Psych 101 folks – if you tell someone you like something they did, they’ll likely do it again. Well that was easy. I tell them straight out what I think. I am on the road quite a bit so if I don’t see them in person I let them know through a thoughtful message or email. It doesn’t take a ton of time to offer this support, and the gain equals more than the give. The result? My team is loyal, dedicated, creative and capable. They are empowered to drive profitability – and they do.

Positive reinforcement with customers

• It’s not groundbreaking by any means when I remind you that positive reinforcement is a huge incentive for customers. To have a truly profitable business, however, you need to know specifically what type of incentives your customer base is drawn to. What motivates your customers to engage with your business over all the others? I’ve said it before, to know this, you must get to truly know your customers.
• Once you know what your customers truly want you can concentrate on types of positive reinforcement to offer.  Customers often like rewards programs with added benefits for repeat services, discounts, or even notes of appreciation and thanks for their patronage. And always, always provide top notch customer support. It may sound basic, but it’s a great start and if you personalize these incentives they will mean more.

Tell me – how do you use positive reinforcement in your business and what are some of the new incentives you can add? Do it and watch your business become more profitable!

If you want more tips like this go to Mikemotorbike.com or Mikemichalowicz.com and click on Get the Tools for tons of tried and true resources for business help and how to run a truly profitable business. Let’s rock entrepreneurship!