13 Sep Putting Profit First In Your Business
I’m doing a happy dance in my business these days as I recently became a Profit First Professional. After 11 years of working with small business owners to help them optimize their QuickBooks files and structure their back office to support exponential growth, I realized there was a missing puzzle piece. Small business owners struggle with the basic questions of how much to pay themselves, how to pay themselves, and how to scale their business into something that instead of supporting just one person, has the financial potential to support a village-to support those people-family, friends, employees that are near and dear to them. What if it were possible for small business owners to attack debt, be paid what they are worth, and create viable revenue streams that will support them and their village for years to come?
Profit First has become just that program for me in my own business. I have taken what I have, which is some uber accurate financials-gotta love sharp bookkeeping skills- and incorporated the principles of Profit First to understand and manage my business profitability. I have taken into consideration every expense, subscription fee, contractor fee and consolidated them with the knowledge of different revenue streams and owners distributions, fringe benefits and payroll. The result is a deep understanding of my bottom line and an ability for me as a business owner to set measures in place to continually improve my profit. There were also some other amazing and beautiful results to implementing Profit First concepts into my business.
- I sleep better at night! I know where I am at so there no nagging questions about whether or not I can afford something and I don’t lose any sleep over it.
- I don’t second-guess myself as much. Self-doubt be gone!
- If I lose business, I am able to plug that in and determine immediately how it will result against my bottom line profitability.
- I am able to test potential changes that I am interested in making to the business and how that will impact profitability. I have living documents with real-time data where I can run different scenarios.
- And finally, I am making ongoing profitability improvements and I am earning more money!
I am so excited to introduce the methodology of Profit First to my clients and future clients! I hope you will find as much peace of mind in this product as I have. I meet business owners all the time who do not have enough visibility to their financials, thus they are making impactful decisions based on today’s balance at the bank. What if it were possible for our small business community to have real-time, accurate financials and to be able to act upon those financials with confidence? I find that your bookkeeper knows things about your business that you, as the business owner, may not. They know the day-to-day ins and outs of client receivables like who pays by credit card and who pays by cash, who waits to the last minute to pay the bill and who submits the second they receive it. The bookkeeper knows the habits of those people in the company who hold the company credit/debit card. They know where they dine out, how frequently, when and how much it costs. They know how much money needs to be in the bank to cover payroll. They know which revenue streams are carrying the business and which ones are costing the business. Do you know those things about your business? How are you utilizing that information? If any of these things have tweaked your curiosity, please contact me here and I will gift you 5 chapters of Mike Michalowicz’ book, Profit First. Perhaps it is time for a new sort of accountability.
