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Episode Brief Description

Profit First, created by Mike Michalowicz, is an amazing system for managing your cash flow in your business.  Join us we discuss how to get started and use this system in your business

Are you looking to create your ideal lifestyle?  Then we invite you to become a #lifestylebuilder.

Find out more here.

Key Insights & Timestamps

• [00:29] – Welcome
• [03:50] – What are the problems that lead to needing Profit First?
  • Most businesses are struggling financially, but don’t need to be
• [08:27] – What IS Profit First? 
  • The biggest idea behind this method is to pay yourself first 
• [11:13] – Understanding the basics 
  • Using “buckets” for different areas of money within your business 
• [12:41] – The importance of having separate business accounts and why
• [13:26] – The bank account “buckets” 
  • Income Account
  • Profit Account
  • Owners Account
  • Tax Account
  • Operating Expense Account 
• [15:10] – TAP (Target Allocation Percentage) 
• [17:47] – Moving money between buckets 
• [19:35] – How to get started 
  • Finding the right bank is essential, you will need several accounts. Look for local credit unions, they typically have low to no fees for multiple accounts 
• [23:05] – Tracking your accounts 
• [26:24] – How we have implemented Profit First in all 3 of our businesses 
• [37:11] – Action Items 
• [40:04] – Toms Bookshelf 

Action Items

Tom’s Homework

• Talk to your accountant or advisor and get your financial documents. 

Tom’s Bookshelf

Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

Get This Book

• Audible – Get Your First Audiobook Free!
• Amazon – Get The Physical or Kindle Version

Resources Mentioned

• Plan With Purpose: The Ultimate Guide to Creating Your Ideal Lifestyle
• Lifestyle Builders Mentorship