WHAT IS PROFIT FIRST?
The Basics of PROFIT FIRST
This program teaches full implementation of the Profit First cash flow system, created by Mike Michalowicz.
Simply put, Profit First is a system to help you automate your cash flow so that you can:
- Achieve your goals for you business AND your personal life
- Set aside more money for profits
- Control your spedning
- Stick to an automated system
- Save for taxes
- Eliminate debt
- Save for emergencies
Wouldn't it have been nice to have had 3+ months of business expenses saved up when COVID hit? And on top of that, wouldn't it have been nice to continue to take a profit throughout the pandemic. This system helps you to maintain a profitable, successful, and automated cash flow in good times and bad, so you never have to worry about how you're going to pay your expenses or yourself again.
Here's the basics of the system:
The GAAP (Generally Accepted Accounting Principles) formula for determining a business’s profit is Sales – Expenses = Profit. Unfortunately, in this formula, profit is a left over, a final consideration, something that is hopefully a nice surprise at the end of the year. Alas, profit is rarely there for small business owners. Which is why, in Profit First, we change the formula to:
The GAAP formula for determining profit is Sales – Expenses = Profit. Unfortunately, in this formula, profit is a rare left over, something that is hopefully a nice surprise at the end of the year. Which is why, in Profit First, we change the formula to:
Sales-Profit=Expenses
Logically, the math is the same, but from the standpoint of the entrepreneur’s behavior, it is radically different. With Profit First, you take a predetermined percentage of profit from every sale first, and only the remainder is available for expenses.
Profit First leverages your habits to create more profit in your business. It manages your cash flow in such a way that controls your spending and sets aside money for profit and other obligations. Profit First makes profit a certainty.
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Profit First allocates money to different accounts (the profit account first) on a regular schedule. This way you can see the actual portion of income that is available to use for expenses and your profit account is constantly growing.
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Profit First removes the temptation to borrow from yourself by separating your profit, owner's pay, etc. from your operating account.
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Profit First helps you automatically adjust your spending to fit your new operating account balance, all while growing your profit, tax savings, and owner's pay!
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Profit First creates a fiscally strong business in which you benefit from regular profit distributions and effective cash flow.
Watch our 2-minute video that explains the basics of how Profit First works!
Certified Profit First Professional
Bill Litster has achieved Mastery level certification for Profit First coaching. Between that and his 30 years of experience as an accountant, (multiple) small business owner, CEO, CFO, and traveling consultant, he is uniquely qualified to help guide you to Permanent Profitability in your business.
If you're tired of living month to month in your business, reserve your seat in Bill's Permanent Profitability Program. It will change your life and your business!
Not sure if this system is a good fit? Let's schedule a free call where I can take a look at your business and finances and let you know if Profit First is right for you.
