Running a business isn’t just about passion and day-to-day operations—it’s about building something that can thrive without you. On the latest episode of The Stride 2 Freedom Podcast, Russell Benaroya sits down with Chris Rhyme, partner at The Business Transition Group (BTG), to explore how business owners can retain key talent, reward performance, and grow enterprise value strategically.
Why Retaining Key Talent is Critical to Growth
Chris Rhyme works with business owners nationwide, helping them unlock the full potential of their human capital. Many owners reach a point where their business can’t grow effectively without strong, motivated team members. Yet, finding the right incentive structure is challenging.
Chris points out that some business owners try to offer equity or other rewards without fully understanding the long-term consequences, when the real goal should be aligning employees’ performance with the company’s bigger objectives.
The Complexity of Rewarding Performance
Creating meaningful incentives isn’t easy. Chris explains that while large corporations have established strategies, smaller businesses often lack guidance. Owners may understand HVAC, accounting, or operations but struggle with advanced concepts like non-qualified deferred compensation plans (NQDC) or key executive incentive plans.
- Most small businesses don’t have access to top-tier compensation specialists.
- Translating corporate-level strategies to the middle market can be confusing.
- Implementing a plan without proper metrics can lead to inefficiency and frustration.
How Metrics Drive Incentives and Enterprise Value
The solution is to tie rewards to measurable outcomes that matter for each role. Chris uses a simple example: if an employee named Billy paints fences, his reward is tied to the number of fences he paints and the quality of his work. For a business development employee, success is tied to generating leads and closing deals. Each role has specific metrics that translate directly into cash rewards or long-term benefits.
This approach ensures that:
- Employees clearly understand what they need to achieve.
- Incentives are role-specific and drive business profitability.
- Long-term company value grows as key contributors stick around.
Non-Qualified Deferred Compensation (NQDC) Plans
NQDC plans are a powerful tool for incentivizing key employees. Unlike 401(k) plans, these are flexible and performance-based. Chris explains that “deferred compensation plans allow you to reward key talent over time, tying payouts to long-term metrics and business success.”
While there are considerations, such as funding the plan and tracking vesting schedules, Chris emphasizes that “properly designed plans are forgiving and adapt to business performance, even in unpredictable years.”
Succession and Exit Planning: Thinking Beyond Day-to-Day Operations
BTG also specializes in succession and exit planning. Chris helps business owners map out the path to eventual ownership transfer, whether to family, key executives, or third parties. This planning is increasingly important as baby boomers retire—the so-called “silver tsunami.”
Key steps include:
- Identifying successors and developing leadership capacity.
- Structuring incentives to retain key personnel during the transition.
- Aligning the exit strategy with the owner’s personal and financial goals.
The Emotional Side of Financial Decisions
Chris notes that non-financial factors often drive decisions. Understanding what truly motivates a business owner—beyond money—is critical for crafting effective strategies. As he puts it, “Knowing the heartbeat and the pulse of a business owner is paramount to achieving successful outcomes.”
Practical Takeaways for Small Business Owners
Here are key lessons from the podcast that business owners can implement:
- Focus on retaining and rewarding your top performers using clear, role-specific metrics.
- Use tools like NQDC plans to align employee incentives with long-term business growth.
- Start planning for succession early—identify key talent and outline exit strategies.
- Understand both the financial and emotional drivers of decisions in your business.
- Invest in measuring performance and celebrating success to reinforce positive behaviors.
Building a Business That Can Thrive Without You
Ultimately, growing your business financially isn’t just about increasing revenue—it’s about creating a system where the right people are motivated and aligned with your goals. Whether it’s through retention incentives, NQDC plans, or thoughtful succession planning, the strategies Chris Rhyme shares empower business owners to build a business that transcends their daily involvement.
Who should I interview next? Please let me know.                Â
In this Freedom Speaker Series episode with Chris, you will learn:
- Why retaining and rewarding talent is such an important problem to solve
- Ins and outs of a non-qualified deferred compensation plans
- Key considerations when owners are thinking about succession
We are fortunate to have Chris available to spend time with us on this edition of Stride 2 Freedom. If there is a speaker you’d like us to interview, let us know. Stay well. Stay safe. Stay healthy.
Show Notes and Links From Episode:
Chris Rhyme LinkedIn
The Business Transition GroupÂ
Episode Transcript:
Podcast: Wealth Management: The Metrics of Growing your Business Financially
