Priority Pursuit

How to Set Up a Profit-Sharing Program in Your Small Business with Laura Ciriello-Benedict

April 16, 2024 Treefrog Marketing Episode 140
How to Set Up a Profit-Sharing Program in Your Small Business with Laura Ciriello-Benedict
Priority Pursuit
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Priority Pursuit
How to Set Up a Profit-Sharing Program in Your Small Business with Laura Ciriello-Benedict
Apr 16, 2024 Episode 140
Treefrog Marketing

When your business thrives, shouldn't your team as well?

In this episode, we’re peeling back the layers on how small businesses can energize their teams and increase efficiency through a profit-sharing strategy.

You'll hear from the unstoppable Laura Ciriello-Benedict of Ciriello Plumbing, who shares her triumph in harnessing a program that’s not just boosting profits but also rewarding her hardworking technicians with a well-deserved slice of the success pie. 

Learn the nuts and bolts of setting up a program that actually works, from knowing your costs to outsourcing payroll, and discover how injecting this financial incentive can revolutionize your team's performance. 

And it’s not all numbers—we’re also touching on the human element, prioritizing character, training, and the mindset of embracing change.

Tune in now to catch all the golden nuggets of wisdom!

Specifically, this episode highlights the following themes:

  • Implementing a dynamic profit sharing program
  • Fostering employee motivation and efficiency
  • Building a lasting and profitable small business culture

Other Mentioned Links & Resources

Get to know more about Laura Ciriello-Benedict:
https://www.linkedin.com/in/laura-ciriello-benedict-2697537

Learn More about Ciriello Plumbing:
https://cirielloplumbing.com

Learn More about payroll service Gusto:
https://gusto.com

Learn more about QuickBooks:
https://quickbooks.intuit.com

Learn More About Treefrog’s Small Business Marketing Resources & Services:
https://www.treefrogmarketing.com

Learn how to write your Marketing Guiding Statements:
https://www.treefrogmarketing.com/marketingguidingstatements

Receive 50% Off Your First Year of HoneyBook:
https://www.treefrogmarketing.com/honeybook-coupon-code

Join the Priority Pursuit Podcast Facebook Community: https://www.facebook.com/groups/179106264013426

Follow or DM Treefrog Marketing on Instagram
https://www.instagram.com/treefroggers

Follow or DM Kelly Rice on Instagram
https://www.instagram.com/treefrogkelly

Follow or DM Victoria on Instagram:
https://www.instagram.com/victorialrayburn

Show Notes Transcript Chapter Markers

When your business thrives, shouldn't your team as well?

In this episode, we’re peeling back the layers on how small businesses can energize their teams and increase efficiency through a profit-sharing strategy.

You'll hear from the unstoppable Laura Ciriello-Benedict of Ciriello Plumbing, who shares her triumph in harnessing a program that’s not just boosting profits but also rewarding her hardworking technicians with a well-deserved slice of the success pie. 

Learn the nuts and bolts of setting up a program that actually works, from knowing your costs to outsourcing payroll, and discover how injecting this financial incentive can revolutionize your team's performance. 

And it’s not all numbers—we’re also touching on the human element, prioritizing character, training, and the mindset of embracing change.

Tune in now to catch all the golden nuggets of wisdom!

Specifically, this episode highlights the following themes:

  • Implementing a dynamic profit sharing program
  • Fostering employee motivation and efficiency
  • Building a lasting and profitable small business culture

Other Mentioned Links & Resources

Get to know more about Laura Ciriello-Benedict:
https://www.linkedin.com/in/laura-ciriello-benedict-2697537

Learn More about Ciriello Plumbing:
https://cirielloplumbing.com

Learn More about payroll service Gusto:
https://gusto.com

Learn more about QuickBooks:
https://quickbooks.intuit.com

Learn More About Treefrog’s Small Business Marketing Resources & Services:
https://www.treefrogmarketing.com

Learn how to write your Marketing Guiding Statements:
https://www.treefrogmarketing.com/marketingguidingstatements

Receive 50% Off Your First Year of HoneyBook:
https://www.treefrogmarketing.com/honeybook-coupon-code

Join the Priority Pursuit Podcast Facebook Community: https://www.facebook.com/groups/179106264013426

Follow or DM Treefrog Marketing on Instagram
https://www.instagram.com/treefroggers

Follow or DM Kelly Rice on Instagram
https://www.instagram.com/treefrogkelly

Follow or DM Victoria on Instagram:
https://www.instagram.com/victorialrayburn

Laura Ciriello-Benedict [00:00:00]:
Embrace change. Change is going to happen whether you're on board or not. So you might as well be at the very tip. You might as well be the person leading the change as opposed to the person fighting the change. That, and having a really strong base of knowing who it is that you are as a company. You don't make decisions that could compromise that.

Victoria Rayburn [00:00:23]:
Hey there. You're listening to the Priority Pursuit podcast, a podcast dedicated to helping small business owners define, maintain, and pursue both their personal and business priorities so they can build lives and businesses they love. I'm your host, Victoria Rayburn. And today, guys, I want to kick off the show with a question. Have you ever considered setting up a profit sharing program for your team? Honestly, I think it's safe to say that this is something most small business owners and leaders would love to do. However, they aren't sure where to start. I mean, what math is involved, what metrics need to be considered? Rewarding your employees for their hard work probably seems like a great thought. But a lot of small business owners don't ever set up a profit sharing program simply because they don't know how and they're juggling 5 million other things.

Victoria Rayburn [00:01:11]:
Well, friend, that is about to change for you today because Laura Ciriello-Benedict of Ciriello Plumbing is joining us to explain exactly how to set up a profit sharing program in your small business. Laura is a third generation plumbing contractor and the president of William J. Cerillo Plumbing Company, which is a highly respected Indianapolis company where my husband happens to work. Just total side note, but over the course of her career, Laura has served in many leadership capacities within her industry and has been the recipient of countless distinguished awards, including the contractor of the year award for the state of Indiana. Laura is proud of her industry and its strong heritage. And as Cerilla Plumbing's president, one of her top priorities is caring for her team. And Laura is able to make this a priority through systems, including a profit sharing system that she designed. While Laura is full of business wisdom and there is so much that she could share on the show, today, she's joining us to share exactly how to set up a profit sharing program in your small business so that you too, can motivate and serve your team well.

Victoria Rayburn [00:02:22]:
Laura, thank you so, so much for coming on the show. I am so excited for this conversation.

Laura Ciriello-Benedict [00:02:27]:
Great. Well, thank you for having me. I really appreciate.

Victoria Rayburn [00:02:30]:
Oh, it's going to be wonderful. Laura, that was a very brief introduction of all of the many things that you do. So before we dive into today's topic, would you mind introducing yourself and telling us more about your small business?

Laura Ciriello-Benedict [00:02:44]:
Sure. I'm Laura Sorello Benedict, and I am a third generation plumbing contractor. My grandfather started our business in 1952. My father bought it from him and ran it for about 30 years, and I've been at the helm for the last 13 years.

Victoria Rayburn [00:03:01]:
Amazing. And again, I think that this is kind of a funny conversation just in that my Zach works for you. And so I've gotten to see everything from the employee side as well, and he obviously has nothing but great things to say. So, Laura, I know from our conversations outside of this podcast, you are super passionate about having systems. In fact, conversations we've had in the past, you said, just thanks to your systematic brain, like your numbers oriented brain, really. I mean, you could run any small business regardless of what they sold. So I do want to ask, why are you so passionate about having systems in place?

Laura Ciriello-Benedict [00:03:43]:
I think, how could you possibly measure the success of what you do unless you track the data? So we are a very data driven company, and I think that's actually one of the things that Zach likes about the company.

Victoria Rayburn [00:03:57]:
Yeah, Zach's very black and white, so this is very helpful.

Laura Ciriello-Benedict [00:04:01]:
Know everyone can have a feeling about something, but the data actually is what backs it up. And some days I might really feel strongly one way about something, but when I really sit down and I analyze the data that we collect, I might find that my feelings are wrong, that what I thought was so just simply isn't the truth, because the numbers actually tell it. So. I've been very fortunate when my grandfather started the business. Obviously, starting a business has a whole lot of challenges to it, but when my dad took over, the reason why he wanted me to come on board is for more of that analytical piece. So he was a rare combination of a brilliant technician and a brilliant businessman. So I'm not really the technician side, but I am the business side. So when I was brought into the business, my job was to really dive in and figure out all the things that he wanted to know.

Laura Ciriello-Benedict [00:04:56]:
And once I started doing it, I realized that, number one, I have a knack for it. And then secondly, it just made sense. These are things that we should know about how we run our business. So we keep data on pretty much everything you can possibly think of. We are a full service plumbing and repair company, so we don't do any new construction, but we do service and repair for both residential and commercial customers. So I have data for commercial. I have data for residential. Break it down by categories, by technicians.

Laura Ciriello-Benedict [00:05:29]:
Just pretty much everything you can possibly think to keep numbers on. I do love that.

Victoria Rayburn [00:05:35]:
And Laura, I think it's also important to note here that you are a female in a very male dominated industry. And so I just think know your background, what you bring to your mean. It's just such a different perspective and not to say know because you're a woman. That's why Cerillo is so successful. But I think it definitely does bring insight that other companies just don't have.

Laura Ciriello-Benedict [00:06:01]:
Well, thank you. I do have to say, when I've been in the business over 28 years and 28 years ago, it was without saying that I would always be the only woman in the room. And that is changing. I also sit on the board of directors for the apprenticeship school and I've presided over many a graduation over the years and we have female technicians graduating at a pretty high rate now. Whereas used to be you would never find a female technician in school.

Victoria Rayburn [00:06:31]:
Man, so cool to see all of these changes. Well, Laura, I'm really excited to dive into today's topic. And just so we have a definition to start with, would you mind sharing with us what is a profit sharing program? Just in case somebody is listening and they're like, oh, I have never heard of this before, but they want to know more.

Laura Ciriello-Benedict [00:06:51]:
So the reason why we decided to do a profit share and to define it in terms of what it meant to us is we wanted our technicians to have another way to control what it is that they make in addition to their wage. So in our industry, our technicians are hourly employees. So like I said, we are service and repair. So there's a lot of times when we quote, work for the customer, whether it be a water heater replacement or a repipe in the basement or a water softener installation at a commercial building, we have to give the customer a price on those things. So what we wanted to do was incentivize people to work as quickly and efficiently as possible. But none of that would be possible without having the confidence in your technicians to be able to perform the service to a level of excellence. Once you have that base level confidence that the technical side is going to be fine, then what you're focusing on is the nuances to make that particular job more profitable. So everyone is motivated to do better if they know there's more in it for them.

Laura Ciriello-Benedict [00:08:05]:
I mean, we hire at Sorello plumbing, we hire character and we teach plumbing. So everyone that works for us is of a very high character. They are technically sound, but more importantly, they're good, honest people. First so if you have that kind of baseline, you can build something like this. So what we did is we took a look at the work that we were doing, and we know our facts and figures, so we know what our break even costs are. We know what all the things are that go into building the job, and then what profit we want to make. So what we said to the technicians is, look, this is the profit level that we need to make to run the shop. Anything above that profit level, as long as you hit that marker, we will share that profit directly with you and the proportion that you worked on the job.

Laura Ciriello-Benedict [00:08:55]:
So, for example, if we quoted a job and you were the sole technician on the job, you hit the profit margin that it needed to hit. We will share the rest of that profit with you by giving you a 3% profit share on the job. Now, if you quoted it yourself, which before this program, people didn't really quote a whole lot of jobs themselves, but because of that incentive, we now give them a 5% profit margin on anything that they quote that brings in that base level profit. So then I keep track of that information by technician per month, and then I divide it by their productive hours, and I call that their self directed raise. Everyone always wants to know, how is it that I can make more money? Well, this is the part that you absolutely control. So we do pay bands where in my field, you have to be a licensed technician. So you have to go through four years of schooling, pass a test. So there's all kinds of levels that make sense for a pay band, but beyond that pay band, your performance is what actually makes you rise to the next level.

Laura Ciriello-Benedict [00:10:11]:
So when I break it down into an hourly perspective, these technicians start looking at their wage package instead of an hourly rate. So this profit share is something that they actually control. That's why I call it the self directed raise. And there are technicians that will end up giving themselves three, four, $5 an hour more on what they make, because they've really embraced the system. They've learned to gain efficiencies on their jobs, and they're much better estimators now. And I think that's really made a difference. And the difference to our entire shop has been staggering. We went from where technicians weren't really quoting very much on their own to every single technician is quoting jobs, which just adds to our sales, our top line, and our bottom line in ways that I could have never predicted.

Laura Ciriello-Benedict [00:11:10]:
The level of success that we've had with this program is really off the charts.

Victoria Rayburn [00:11:16]:
I love that. And, Laura, remind me, what year did you say that you started implementing this program?

Laura Ciriello-Benedict [00:11:22]:
It has been probably about a year and two months. So one of the things is, I didn't want to know. There are plenty of things we as business owners do that says, this is a great idea, this is a great idea. But it would be better served if I waited till the first of the year. I'm busy. I'm busy the first of the year, everyone's busy. So I said, you know what? I don't care. I don't care.

Laura Ciriello-Benedict [00:11:47]:
I think I started it maybe a couple of months before the end of the year, and I couldn't believe the impact that it had in that short period of time. And I didn't have buy in from everyone at first. Right. So it's like everything else. You have technicians that have been here for a long time. We're very blessed to have a lot of seasoned techs that have been with us 20 plus years. And change is hard and it's not mandatory. We pay a very competitive wage alone without this piece.

Laura Ciriello-Benedict [00:12:20]:
So if you just worked here and just did that, you would be rewarded for your professional service. This is just an opportunity for those that want to earn more, to earn more. So by the time we were probably four months in, every single one of my technicians had embraced the system and, in fact, expanded it in ways that I could not have fathomed.

Victoria Rayburn [00:12:45]:
I love. Yeah, I guess in my head you have been doing this a lot longer, because a year and two months, that's about how long Zach has been there. So it's been about the whole time he's been there, and I just didn't know otherwise. But, Laura, I feel like you've already kind of answered this question. But just so it's 100% clear for listeners, why should small businesses consider setting up a profit sharing program? And more specifically, what have been the benefits for both your bottom line, but then also the benefits for your company culture?

Laura Ciriello-Benedict [00:13:15]:
I think it's a competitive labor market, without a doubt. And so you need to stay in a position where you're open for change and open for possibilities. The old ways of doing, well, anything is old. So you can either stay there and not grow, or you can make changes and you can really move forward in ways that you couldn't even fathom before. So I think the reason why someone should consider it is because it's a next level game changer. It's like looking at your staff and thinking, if I added one more person, what would that look like? Well, if you get more efficiency and more buy in and more gusto from the team that you already have. You should start there. Like I said, it has been staggering the success of this program.

Laura Ciriello-Benedict [00:14:13]:
In fact, I'm always looking for additional ways for compensation. What I want is if a technician comes in and they are of a character, a caliber and an ability to do more, they should be rewarded. And if my entire team made six figures, fantastic. That's the way it should be.

Kelly Rice [00:14:36]:
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Natalie Franke [00:15:56]:
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Victoria Rayburn [00:15:59]:
Absolutely. And I mean, I think this does a really, I mean, it's a really great way to stand out as a company when people are interviewing for other jobs. Something that we, Kelly and I talk about regularly is that for some small businesses, they can't necessarily afford to offer all of the benefits. But there are creative things like this that you can do to stand out and so you can hire more talented people. And I mean, I think, again, that's just so amazing that you have figured that so obviously super beneficial for your employees, super beneficial for your business as well. And Laura, not that you have to share exact numbers with us by any means, but for those who are listening, and they are very numbers minded. And because I know you are, I'm sure you have this data readily available. Can you give us percentages or what has in the last year and two months, how has this helped surlo plumbing grow?

Laura Ciriello-Benedict [00:16:54]:
Sure. So, like I said, when we started this program, we had one chief estimator, so one person did the majority of the estimates for our company, both commercial and residential. So implementing it has freed him up to focus on larger scale projects. Number one, it has allowed a better closing rate. So on average, our technicians are closing at a 36%, because I keep track of that, too. 36% of the time, something that they suggest or give to the customer, they take. And keep in mind that we're already on site performing another service. So we've already been called out to the home, to the business, to wherever, and we're already performing a service.

Laura Ciriello-Benedict [00:17:48]:
So that technician has upped the game as far as confidence in their ability to do the job. So we went from one estimator who had to be bogged down with small estimates and large estimates, to him being freed up to do just the large ones, which is hard for me to quantify because his focus is different. But as far as the technicians go, since January of this year, our technicians have quoted or added $480,000 worth of work.

Victoria Rayburn [00:18:24]:
That's incredible. Just in case people aren't familiar with Cerilla, can you tell us how many technicians you have? Twelve. Yes. And I got guys, too. I know this episode will air later on, but it is currently, we're wrapping up August 2023 at the time of this recording. And so that is a huge increase, and I mean less than a calendar year. That's truly incredible.

Laura Ciriello-Benedict [00:18:50]:
So I keep track of the profit percentage on jobs ran by the technicians that are quoted and then by our true estimator. Our true estimator a lot of times has to do cold call estimates where he knows that he's competing directly with an estimate, so he doesn't have the luxury of being in front of the customer. Already gain their confidence because we're already there working for them in another capacity. But the profit percentage is about 31% on work that the technicians are quoting, which is a few points higher than our chief estimator if he had to go out to all of them himself. Plus, there's no way that, given the volume of quotes that have now been performed, our lead estimator could not be in that many places. It's physically impossible. So a return on my investment has been threefold on just implementing something that I did not add to staff. I did not make any other change other than that.

Laura Ciriello-Benedict [00:19:58]:
And if the estimate, it isn't performed and hits the profit goal, then there's not any profit share. If the estimate is performed and we didn't get paid, then that's not paid yet either. It's a paid when paid scenario.

Victoria Rayburn [00:20:13]:
Gotcha. And I mean, this is kind know a note from a spouse, but I know Zach particularly loves the fact that you allow the text to give the quotes just in that other companies that he's worked at, somebody else makes the quote, and you show up to this job, and the person who gave the quote, they haven't actually been in the field for 1520 years. And no, it's not physically possible to do it that fast, or that tool doesn't make sense anymore. So, yes, another side benefit. Again, just total side note. But Laura, let's get into this process now, because I know people are listening and thinking like, all right, this sounds amazing. I would love to increase my profits. I would love to serve my team better.

Victoria Rayburn [00:20:53]:
So how can small businesses set up a profit sharing program? Yours is very efficient and based on very specific metrics. So while our listeners, they may not all be plumbers and everything might not correlate perfectly, but I do know that they would love it if you'd be willing to break down your system in full so they can adapt it for themselves.

Laura Ciriello-Benedict [00:21:16]:
Sure. I do have to give a lot of credit to software, right. So in my industry, quickbooks would not be enough in order for me to do this. So in our industry, we use dispatching software, which works with Quickbooks for the accounting piece. So, like everything else in life, if you use it to its maximum, you get the maximum out of it. So we had to build this. I could not have started this probably five years ago because I didn't have all the systems in place to do it. So you really have to evaluate.

Laura Ciriello-Benedict [00:21:54]:
And we're pretty complex. I mean, plumbing has a ton of parts, and there's a ton of different possibilities. If something is more simplistic, you could probably roll it out immediately. But you have to know your costs first. And if you know your costs first, then you build from there. So, for us, we have all of our inventory items and everything else in the system already in the system with a particular markup. I worked up some labor rates for the technicians to help them figure out how to quote things. We also teach estimating, where we'll actually do a project here in the shop, and we'll have everyone estimate it, and then we'll actually perform the service and then see who was the closest to it.

Laura Ciriello-Benedict [00:22:41]:
We have a library of quotes that we have done, estimates that we have done in the past, so everyone can see what the wording looks like and the nuances and the caveats that you have to avoid and the things that you should put in there to protect yourself. But then again, the other thing is that we hire character and we teach plumbing. So I'm confident that what they're performing out there is what the customer needs and wants. So implementing it really is knowing the cost, knowing the retail of the project, then sitting down in the nuts and bolts of it and figuring out, okay, how much time was actually spent on it, how much material was actually used on it, so that you know the true cost versus the true retail price of the job. If it hits your predetermined marker and goes above it, then you would share that percentage. And like I said, if you performed it all yourself, you would get that entire percentage yourself. But if you are on the job with another technician and you're there 50% of the time, then you split it. If it's a 70 30, then it's a 70 30 split.

Laura Ciriello-Benedict [00:23:46]:
So that I keep track of outside of the program, and then to effectively communicate it with the team, most of our technicians think in terms of an hourly basis. So I do call it the self directed raise. So the way that I do that is I take all their profit share for a month, and then I divide it by the number of productive hours that they have. Because we keep track of non productive and productive time. And then that is the self directed.

Victoria Rayburn [00:24:15]:
Rate and non productive time. I mean, that's furthering education, being in the shop, is that correct?

Laura Ciriello-Benedict [00:24:21]:
Yeah, just in case anybody's in our world, if you think about it this way, if you're turning wrenches in front of the customer, that's productive time. If you're sweeping the floor, putting inventory on your truck, or you're in a training session, that's not productive.

Victoria Rayburn [00:24:34]:
Fair enough. Every industry is a little bit different, so just in case. But I think people are probably listening and thinking like, okay, that sounds great. We're going to pick a percentage. We're looking at the amount of time it took. And especially for service based industries, this is pretty simple math to do. But I think something else that does kind of hold people up in implementing a system like this is honestly, payroll. Payroll is something that is already kind of a headache, whether they're outsourcing it or using a system or not.

Victoria Rayburn [00:25:07]:
And as small business owners, there are things we love about our jobs and things that we wish we could just not mess with anymore. So do you mind if I ask, what does the payment system actually look like? Do you have any software recommendations for people? Any process recommendations? And then also, how often are people seeing profit sharing? Does that happen once a week? Does that happen once a month?

Laura Ciriello-Benedict [00:25:30]:
It happens twice a month, and I keep track of it. So all of my data that I share with them is on a monthly basis, but twice a month, they'll get that payment. And everything that you do as a business owner is all about packaging and presentation. So if you have the best benefit package in the entire world, if you don't share it with them in a way that they understand how it was monetized, they don't see the value. And that's not their fault. That's your fault. You have to package it better. So what we do is we outsource payroll.

Laura Ciriello-Benedict [00:26:05]:
We use a payroll company called gusto. It's very. Not very expensive to use. And then, so it's just treated as a bonus on their paycheck. So that part, even though I break it down and show it as an hourly rate, that's so that they understand the true benefit of what it is that they're doing. But what they see on their check is actually the lump sum of that particular payment.

Victoria Rayburn [00:26:30]:
Got you. And so then obviously, you're presenting this to them as individuals out of curiosity, just to really get your company as a whole to buy into this. Are these things that you guys discuss at your regular meetings, or does it go past the. This is on your paycheck, and you can see what you did?

Laura Ciriello-Benedict [00:26:52]:
Sure. So, first of all, I text the technicians and I tell them, congratulations, you have $558 on your check and profit share. So I send them that message out, and that way they see it immediately, then they see it on their check. And then monthly we have, at Sorello Plumbing, we have, every Thursday, we have a staff meeting. So one Thursday out of the month is the numbers meeting. So at the numbers meeting, you're going to get a whole lot of data about your particular performance and the performance of the shop. So this particular piece of profit share is in that packet of information. And we do go over it collectively.

Laura Ciriello-Benedict [00:27:34]:
We would go over it so everyone can look at it individually, and then we talk about the shop as a whole. And then every quarter, we meet with our team, and this is one of the pieces that we talk about. So we're really big on your compensation package. And I think one of the things that a lot of companies that pay hourly miss the boat on is not giving them credit for the benefits that they provide. So, for instance, we pay for health insurance at 100% for our employees, which is pretty rare. In fact, my insurance agent keeps telling me, you're the only one on my route that does that stuff. But we do. So there's a monetary value because if they had to pay for it themselves.

Laura Ciriello-Benedict [00:28:21]:
So in our particular instance, it's 3.1 cent an hour is what insurance would cost. So every quarter I show them what their wage package is. So it's your hourly rate plus the monetized value of all of your benefits broken down into an hourly setting, and then your self directed raise, which is the profit share piece. All of those things added together is what your true wage package is. So then that's per hour. And then I also project it per year based on the average amount of hours that they work so that they can see what it is that they're going to be.

Victoria Rayburn [00:29:00]:
That's ingenious. I think it's safe to say that at this point, most companies, it's the pay stub. It's automated, it goes to inboxes and their employees do not check it. And as a result, they have no idea how it all breaks down. They just know what ends up in their bank account. So I'm sure that your team, I mean, I know that your team, because, again, I have inside information. I know that your team feels very just valued as a result of that. Now, Laura, I didn't put this on the list of questions that I sent over for you, but I'm sure people are listening and thinking like, oh, man.

Victoria Rayburn [00:29:36]:
All right. This woman, she clearly loves her team. She's really prioritizing company culture. She's trying to care for people well. So out of curiosity and a decision to your profit sharing program, what other things are you doing to care for your team? Well.

Laura Ciriello-Benedict [00:29:50]:
Well, we do offer 401. So one of the things that I do, and lots of companies offer four hundred and one k. Right. Lots of people. Number one, I encourage you to contribute to the point where I bring in outside the bank, comes in on a quarterly basis, and teaches my team everything from mortgage to savings accounts to credit scores, because we are in a very high paid industry for very young professionals, and if you don't have that basis now, you could dig yourself into a deep hole. So with the 401, I encourage it. Like, I talk about it all the time, constantly. And then when I meet with you on a quarterly basis, one of the things I do is I know how much you've put into your know, how much the company has put into your don't know is how it performs, because that's between you and your 401K.

Laura Ciriello-Benedict [00:30:51]:
But then I just use the Dave Ramsay retirement calculator. I put in their age, their age of retirement, and then I show them the screen and say, congratulations, you will be a millionaire by the time you retire. And if you're a young person, 23, 24 years old, and you think you just have a mountain of things that you want to accomplish in your life, if you look at that and say, man, that's fantastic. And it's not that what I'm doing is any different than what other companies offer that particular piece. The profit share is different, but this 401K, it's just packaging again. And if you don't really show them the value of this, if you're 25 years old, are you really thinking about retirement one day? I mean, I did, but I'm a numbers dork, but most people know. So if you show them what it could look like, you get buy in. And with buy in comes maybe some additional grace given to you as an employer as well.

Laura Ciriello-Benedict [00:31:53]:
So we pay for health insurance at 100%. We also put money into a tool fund. So in our industry, obviously, tools are not cheap, and you certainly have to have tools to do your job. So we help you buy the tools for that. We pay for your schooling at 100%. Because in our industry, it is required that you go to school for four years. So we do that as well. So everything that we do benefit wise, like that, I monetize and I show them I'm even such a dork that I even show them the tax advantage to the fact that I'm paying for these things.

Laura Ciriello-Benedict [00:32:26]:
And they don't have.

Victoria Rayburn [00:32:28]:
Love that, Laura. This has all been so good. So, Laura, before we do wrap up this conversation, I have one more kind of unrelated question for you. But it is no secret that half of small businesses, they don't survive past year five, which is crazy to think about, but at the same time, really not all that surprising. However, Cerillo has been in business for three generations, and actually four if you count the fact that your daughter is now on the team as well. So, Laura, with that in mind, I have to ask, in your experience and opinion, what is the key to building a successful small business that actually lasts?

Laura Ciriello-Benedict [00:33:13]:
Sure. Without a doubt, it's embrace change. Change is going to happen whether you're on board or not. So you might as well be, at the very tip, you might as well be the person leading the change as opposed to the person fighting the change. I think that and having a really strong base of knowing who it is that you are as a company. And for us, it's the best technical skill possible for the most honest technician and the fairest price. That is who we are. That is what we are, and that is what we will be.

Laura Ciriello-Benedict [00:33:49]:
And you don't make decisions that could compromise that. You don't make decisions that put your team in a position where they would have to make any decisions that are counterproductive to that. And then you just hire mean very few of our technicians. Zach is an exclusion come to us as plumbers. Most we have to grow. My business partner, for example, he is a water treatment guy. We have a drywaller. I've had a line cook.

Laura Ciriello-Benedict [00:34:23]:
I had someone straight out of high school, too, who now at age 23, is a licensed plumber making fantastic money with a these other benefits that his peers don't have. And all of his peers that went to college have lots of student debt and he has none. So definitely embrace change and invest in.

Victoria Rayburn [00:34:46]:
Your oh well, if Zach were on the show, he would go on a whole rant about why people should work in the service industry and all of the benefits. But Laura, thank you so much for coming on the show today. Thank you for sharing wisdom about profit sharing and about several other business topics. Like I said when we started, there are so many things that we could have you on the show to discuss. So I have no doubt that I'll be on your inbox at some point asking you to come back. But Laura, where can people find you, connect with you? And if they are in the Indianapolis area, find Sorella plumbing so that they can utilize your services.

Laura Ciriello-Benedict [00:35:23]:
Sure. We service the entire metro and donut counties of Indianapolis. We are sorelloplumbing.com and our telephone number is 317-787-5391 wonderful.

Victoria Rayburn [00:35:37]:
And we will put all of that information as well as the software and things you mentioned in the show notes so people can check that out again. Laura, thank you so much. It was great to have you.

Laura Ciriello-Benedict [00:35:47]:
Great. Thank you so much for having me. You go.

Introduction
About Laura Ciriello-Benedict
Data-driven decisions, business ownership, analytical focus
Technicians receive performance-based profit share incentives
Profit share empowers technicians to increase earnings
Innovative hiring practices help small businesses stand out
Profit percentage on jobs is higher for technicians
Tracking quotes and costs for plumbing projects
Bi-monthly tracking of data, emphasize value packaging
Encouraging 401k contributions and providing financial education
Dave Ramsey retirement calculator shows millionaire potential
Connect with Ciriello Plumbing