by Eric Treworgy
What would happen if you handed your employees the keys to the business tomorrow? Would they know how to keep it running—and profitable? If you’re thinking about selling your business to your employees—whether to retire or move on to something new—the first step isn’t legal paperwork or financing. It’s trust. And trust comes from transparency. For a co-op to succeed, employees need to know how the business really works—especially the numbers. That means opening the books on things like:
- Profitability
- Cost of goods sold (COGS)
- Labor costs
- Fixed expenses
For many owners, that’s a big mindset shift. We’re used to keeping financial details close—protecting employees from bad news and avoiding tricky conversations when business is good. But in a co-op, those same employees may become the decision-makers. They can’t lead without knowing what drives success. Why Open the Books? Even if you’re not ready to hand over the keys, sharing financial information can make your business stronger today. When employees see the numbers, they often spot ways to save money, boost efficiency, or grow sales—ideas you might not have considered. Regular monthly or quarterly “open-book” meetings can:
- Increase profits through fresh ideas from the front lines
- Build leadership skills for the future
- Boost morale and retention
- Keep everyone focused on the same goals
And when the time comes to sell, your team will already understand the business inside and out—making for a smoother, more successful transition. The First Transparency Meeting Here’s a simple way to get started:
- Call a paid meeting– Let your team know the goal is to share financial info and hear their ideas.
- Lead with good news– Start with wins to set a positive tone.
- Share a small challenge– Pick something manageable, not a crisis.
- Ask for ideas– Be open to new perspectives.
- End with action– Set one specific goal and schedule a follow-up meeting.
The Bottom Line Transparency isn’t just about preparing for a co-op—it’s about building a smarter, more engaged team right now. Done well, it can improve profits, create future leaders, and make your eventual exit (whether to employees or someone else) much smoother. Open the books, share the story, and you might find your employees are more ready for ownership than you think.
About Eric Treworgy
Would you like help getting your numbers in order or identifying areas to grow value? Reach out—I’d be happy to connect you with free, confidential advising services to guide you through the process.
Eric keeps an office at URCI and is a business advisor for Coastal Enterprises (CEI) in Brunswick, Maine. He has more than 35 years’ of entrepreneurial experience and specializes in business start-up, strategy, sales and marketing, retail, food and beverage, computer software, and operations management. Through CEI, Eric offers free confidential business advising to help navigate the start-up process, your succession planning, and everything in between.