I am thrilled to report that our firm has just completed the final step in the Profit First certification. Why is this important to you? It enables me to provide you with the tools, methods and support to quickly (and easily) guide your business to higher levels of profitability.
In case you are not familiar with the Profit First concept yet, it is a method developed and documented by business author Mike Michalowicz. Nearly immediately after its introduction, Profit First became the most popular book of all time on how to systematically (and easily) grow profits in any business. Profit First became a TED talk, had an entire segment on MSNBC, was written about in Forbes, and was featured in AccountingToday all in the same week.
Our firm was selected over hundreds of competitors to provide businesses with guidance and support using the Profit First methods. And as a result my clients – that's you – will directly benefit. Below are the core chapters of Profit First . I think you'll find it an enlightening and fun read. The strategies outlined will absolutely help you increase your company's profits.
You've probably heard about the Profit First Methodology. With my first blog post, I'm going to give you just a little piece of the puzzle by laying out the basic steps to this revolutionary method. And by revolutionary, I mean - for business. I'm sure back in the day (or even now!), you had a holiday savings account where you put a little money every week or every paycheck into the account and *POOF* by the holidays you had a nice little stash to spend on gifts. This is the same thinking. If you set aside "buckets" or allocations of your revenue each and every month, you will quickly grow your profit accounts and will be able to accurately identify how much you actually have to spend on running your business. Here's how:
Create your buckets, not just in your accounting software but at your bank.
By opening actual accounts at your bank, you will separate your funds in a way that allows you to truly see what you have available. At a minimum, you need PROFIT, TAX, OWNERS COMP and OPERATING accounts.
Start with a small allocation
You want to be able to continue this and not "steal" from the accounts to fund others. So start with even 1%. As a Profit First Coach, I can help you calculate what is ideal for your business.
Reward Yourself with Quarterly Distributions!
You've put the funds aside - now reward yourself for your hard work. Consider it a quarterly bonus. Your business should be working for you, not the other way around. So you need to pay yourself and bonus yourself for work well done.
Allocations can be used for all kinds of projects, profit sharing, charitable donations, etc. Contact dK east for help on how to make that happen!
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