How much did you get to pay yourself last month? Was it an intentional amount, or just the left over crumbs after all your business expenses were made? What if we flipped the accounting equation on its head? Instead of Revenue – Expenses=Profits, what if you pay yourself first? So Revenue – Profit=Expenses. 

I am a huge believer in the Profit First method, and am also a certified coach in teaching it! This revolutionary approach to business finances not only works, but ensures that your business runs smoothly, efficiently, and profitably. With Profit First principles you learn to prioritize your profits, set up a multi-account system, simplify your decision making, and create a plan that supports both you and your business. 

It’s time to stop just surviving in your business financially and start thriving!

What you’ll learn:

• Why the traditional accounting formula keeps your profits as an afterthought
• How to set up a multi-account system to manage your finances with clarity
• Why paying yourself first is the key to building long-term financial stability
• How a regular transfer schedule creates consistency and control in your cash flow
• The proven steps to gradually grow your profit percentages without overwhelming your budget.
• Real-life success stories that show how Profit First can transform your home service business.

Key Moments

[00:01:48] – The importance of intentional profit
[00:03:05] – Using a multi-account bank system 
[00:07:56] – Getting money into the accounts 
[00:12:47] – The importance of starting small 
[00:14:00] – Exercising the profit first muscle
[00:15:16] – Real-life success story 

“We don’t want the business owners to have profit as a crumb, something that’s just left over at the end of the day or the week or the month or even the year. We want your profit to be intentional.”

Flipping the Traditional Accounting Formula

Profit First, flips the traditional accounting formula of sales minus expenses equals profits. Instead, it proposes a new formula: sales minus profit equals expenses. This shift ensures that profit is not an afterthought but a deliberate goal for small business owners.

The Power of a Multi-Account Bank System

One of the key strategies is the use of a multi-account bank system to manage finances effectively. It’s important to set up a general operating account, a profit account, a tax account, an emergency fund, and a future growth account. By separating these funds, business owners can make better financial decisions based on the available balance in their operating accounts.

Set up a regular transfer schedule, such as every Monday morning, to allocate funds to the different accounts. Profit First has helped my clients achieve their financial goals, such as paying for a swimming pool or saving for a new house.

Starting Small and Growing Gradually

Start small and take baby steps when implementing Profit First. I believe that setting businesses up for success is crucial and that gradually increasing percentages over time is the key.

Comparing Profit First to exercising a muscle, it needs to be practiced and strengthened consistently. I share stories of members who have successfully implemented Profit First in their businesses, resulting in improved financial health and the ability to make profit distributions and invest in growth.

The Transformative Power of Profit First

I’m grateful for the opportunity to share Profit First principles and encourage listeners to read the book and explore the transformative power of Profit First in their own businesses.

Get a free digital copy of my book, “Your Path to Profits,” which provides guidance on implementing Profit First in a business, setting aside money for taxes, emergency funds, future growth, and other expenses.

The Profit First principles are a game-changer for businesses, transforming the way they manage their finances and prioritize profit. By implementing these principles, businesses can achieve financial health and set themselves up for success.

Whether you’re a small business owner or a seasoned entrepreneur, I encourage you to explore the transformative power of Profit First in your own business. And remember, start small, grow gradually, and prioritize profit.

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