By now, you’ve no doubt heard of Profit First Professionals and are curious about who they are and how the system can apply to your situation.
Profit First is a great money management methodology and every small business owner will gain something from rethinking their finances with a Profit First Professional.
Break out of the doom spiral and get your business profitability once again. This article will provide you an overview of Profit First and how you can start using the system.
What is Profit First?
Profit First is a methodology developed by small business financial expert, Mike Michalowicz. It’s available as the Profit First book which goes into plenty of detail on how to develop your approach.
Essentially, Profit First changes up the typical formula of Sales – Expenses = Profit. It’s the formula we all know and are probably using, but there is another way to divide up your business finances.
The Profit First formula is Sales – Profit = Expenses. Taking profit first and then apportioning the rest to your expenses will turn your company around. Profit is the priority so the emphasis is getting you the money you deserve.
By focusing on profit, you can create a sustainable income to ensure your success by establishing and stabilising your cashflow.
There are four principles to the system and a Profit First Professional can guide you through these as you restructure your financial approach to business. Protect yourself from making financial mistakes with the Profit First system.
Who are Profit First Professionals (PFP)?
Profit First professionals know the system inside out and can help you set up your finances in the best way for your business. No two businesses are the same, and Profit First Professionals will apply the methodology in the right way for you.
Profit First Professionals have been trained and certified in the Profit First way.
There are only a handful of qualified Profit First Professionals in Australia who can advise you on implementing Profit First effectively. If you want to improve your business financials and are curious about how Profit First will work for you, make sure you choose a certified professional.
What role can a Profit First Professional play in your business?
Certified Profit First professionals are bookkeepers, accountants, and business coaches. They can work with you in a variety of roles as you need them. In a coaching capacity, they will assess your business for profitability and then will help you plan for profits.
Moving forwards, a Profit First Professional will ensure that you are on track to meet your goal profits by supporting you with tools, advice and more.
Check out our Profit Keeping packages, a proactive approach to managing your money in business. We’ll create accounts using the Profit First system, automate your money and ensure your finances run smoothly.
One size doesn’t fit all, which is why our packages are based on your business size. Then we’ll create a clear plan for your money management.
What is the difference between certified Profit First Professionals and bookkeepers?
Profit First Professionals look at the bigger picture, reworking your financials to ensure a stable and sustainable income, and giving you the tools to achieve your goals.
We assess your business to find it’s hidden potential for profitability and plan how we can create long-term income sustainability for you. Erase your debt, protect your business, don’t worry about taxes as your business will take care fo that itself and build a strong business that grows.
Traditionally bookkeepers look at what’s happened in the past and don’t look towards the future. This means they can’t be proactive in the growth of your business. Your business needs more than that and this is where a Profit First Professional can make a difference.
Benefits of engaging a Profit First Professional
Transform your business and start experiencing profitability.
Implementing a new system of any kind and ensuring you’re on track to achieve your goals takes time and effort. Using a professional will help.
For example: up to the first $250,000, 5% is profit, 30% is for expenses, and 50% is an owner’s draw. For most businesses, getting down to that 30% is tough. a Profit First Professional can help you achieve this.
Next steps for your business’s financials and profitability
Book in a free call where we can get to know your business and discover how we can help you take your business to the next level.
Don’t be held back by money worries, it’s time to take control of your finances.