The Profit First Method

The Profit First Method is a way to transform your business by separating profit from your income first, and then paying expenses after. This ensures you are reserving enough cash to pay yourself and creating a cushion for expansion, taxes, a slowdown in income, or unexpected expenses. In personal finance its called Pay Yourself First Budgeting. Click here to Book A Meeting and learn how this small change can lead to big results in your business.

Some key advantages

1) Right sizing expenses: Since you are not blindly dumping all cashflow back into operating expenses, it requires a hard look at your expenses and to become more efficient with each dollar spent.

2) Automation: After the initial setup, Profit First allows your business to run like a well oiled machine, with the cash systematically flowing to their accounts.

3) Larger profit margins: Under the Profit First Method you can take your business from "I'm not sure what my net profit margins are, I just keep reinvesting everything back into the business" to increasing your margins to expand and grow with intention.

4) Taxes: Paying your quarterly taxes is a breeze when you have already segregated the amount you need into a separate account designed solely for paying taxes.

5) Plan for the future: When you prioritize profit and accumulate this cash in a separate account, it allows you to make plans for expansion when the balance in the profit account can support the additional expense.

6) Cashflow organization: With clearly defined goals for each dollar of your business income, you will never have to wonder "where did all the money go."

7) Improved lifestyle: You started a business in order to free yourself from the chains of your desk job, only to find them exchanged for different ones. The Profit First Method can help improve the work/life balance that you were dreaming of back when you first launched the business.