Today’s episode is all about how to drive, build and gain profit from Day 1 of your business.

And yes! There really is a secret formula and it's not really a secret.

I’m going to cut to chase… Feeling apprehensive and thinking that there was no way it could possibly work, I followed Profit First by Mike Michalowicz

Profit First was written with the intention that “rather than you serving your business, your business serves you.” This book introduces several systems that will ensure any business will become permanently profitable.

I know it sounds too good to be true. But it is TRUE! And Profit First really is about giving back to yourself but also being smart about how you are investing in your business.

This takes me back to when I was young and I saw how my grandparents handled their money. They had a beautiful life and plenty of money to do whatever they wanted to do. However, what I saw from them was an example of stringent budgeting which allowed them to travel & do what they wanted to do. They would take out cash and they had actual physical envelopes to sort their money with. They had a “Frolic Fund” for when they wanted to go to the movies or eat outside.

Profit First teaches us the same principles. Set up your bank accounts and divide them into different categories. So you have, a bank account that is your income account and all money flows into that account. And twice a month, say on the 10th and the 25th, you evaluate and add up how much money has come in. And then depending on percentages, you go and you split it up amongst profit, first; then, owner distribution, taxes, operating expenses, etc. Once operating expense is depleted, you gotta get creative.

And this is where business intelligence and street smarts come in. I switched up my favorite project management software, Monday.com, to a new one -- Freedcamp. Primarily because it would cost me less for the entire year but also because I saw how there were features that weren’t there on Monday.com

I’ve started using the website AppSumo.com and I’ve taken advantage of several discounts on software instead of paying full price. It makes me excited about this year and it makes me think about how I can save myself money and be mindful.

Mike Michalowicz’s procedure & the process is really an equation for profitability from the get-go and this is not something where you have to be making billions of dollars to be able to do it, he says to start at the beginning, start small. Even if you have a 1% profit, you’re making a 1% profit. Even if you are only paying yourself 10%, you’re still paying yourself 10%, it’s allocated for you!

Even Gary Vaynerchuk talks about living simply, living humbly. If it’s important to you, spend the money on it, if it’s not that important, find a cheaper way. And above all, have a way to make a profit a priority in your business and to live within the means of what it is your business is doing so you can continue on that path and just increase in your profits.

Remember, start making a profit today! Even if it’s just 1%. Even if you don’t wanna do the profit-first model, just divert 1% of your incoming gross funds for your business into an account, and LEAVE IT THERE.

This is the first day of the rest of your profitable business life!

If you have any questions, reach out to me in the group.

Resources:

Client Experience Revolution Facebook Group

Mike Michalowickz

Monday.com

FreedCamp

Profit First (Audible Link)