For most businesses, the lead-up to June 30 can be stressful. Rallying sales to help boost those end-of-year figures. Promising yourself that next year you won’t be doing this mad last push. Then looking at your P&L and being shocked that the profit you were expecting is much smaller than anticipated or even non-existent. It’s time to breathe, but reflect on what can be improved for the year ahead with a Profit First Strategy.
This business circle of life is not for the faint-hearted, we get it. We lived hand-to-mouth until we challenged our thinking and adopted a new approach to our finances and cash flow.
Want to know more about these promised lands of profit and prosperity? No, I’m not asking you to join a cult, but I am asking you to trust a process that has proven time and time again to work. We call it Profit First. The revolutionary cash flow system is the brainchild of author and serial entrepreneur Mike Michalowicz. Gone are the days when Profit ‘is the bit left over’. Profit now becomes the priority and money for expenses is now ‘the bit left over’.
Traditional method of accounting: sales – expenses = profit.
Profit First method of accounting: sales – profit = expenses.
Interesting right? Mindset is key to this strategy as well as setting up the foundations for success. The foundations are five (5) key bank accounts.
It’s simple, once you have set up your accounts, all of the money coming into your business goes into your revenue account. From here, we distribute it to your other accounts using a predetermined percentage. To learn more about the allocated percentages, read here, or book a call with us. Therefore you can only spend what you have available to you in your account for that specific function of the business. Adopting this strategy means you have the money sitting there ready for you, like at tax time for example, no more scrambling or cash flow woes for you and your business.
You can start Profit First straight away, and you can easily adapt it to any business in any industry. You can even integrate it with your accounting software, like Xero. Imagine yourself a year from now, feeling good about the End of the Financial Year. Knowing your exact financial position and even enjoying the benefits of working smarter (not harder) all year.
Since implementing Profit First into my own business I haven’t looked back, and neither have my clients, who are also benefiting from the strategy. As a mastery level certified Profit First Professional, I believe in practising what you preach.
So, if you are ready to make the change that you and your business are craving, let’s chat. Come the end of this financial year you will be astounded at how far you have come, and wishing you started this methodology sooner.
If you have debts, that’s ok – I’ve got a Profit First strategy for that.
If you are not paying yourself regularly – You should. I’ve got a Profit First strategy for that.If you are stressed about how to pay your next bill – I’ve got a Profit First strategy for that.
If you want to grow your business but don’t know how – I’ve got a Profit First strategy for that.
As you can see, “there is more to Profit First than just the book” Let me help you reach your goals and become a Profit Pioneer.
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Building a profitable business is not an overnight success;
it’s a journey of consistent efforts and strategic financial management. In the world of entrepreneurship, profit isn’t just a destination; it’s a perpetual path.
-Mike Michalowicz
Ready to revolutionise your business's financial approach? Join us on a journey to financial success by embracing the Profit First Methodology. Partner with us now and pave the way for a brighter financial future.
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