Profit First – A Simple System to Manage Your Cash
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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
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
- Figure out your “buckets.”
- Talk to your accountant or advisor and get your financial documents.
Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
- Learn the easy ways you can start implementing Profit first in your business
- Discover the simple steps to get started making better financial decisions today
- Walk through our process using Profit First in all 3 of our businesses