Profit is the most important indicator of success in your business.
Lack of Profits will always lead to serious business problems.
Look down the road ten years from now.
You just sold a portion of your company for millions of dollars to someone you groomed as your successor. Your successor is like family. You trust them with the legacy of your business. You still own a part of the business and have an substantial annual income stream.
You’re still involved in the business on a limited basis. You help guide and direct the strategy of the business for half a day each week.
You own your time. You now relish experiences that are beyond your wildest dreams.
Over the past ten years you extracted enough money out of your business to build a financial wall around your life so high nothing can penetrate it.
You’ve set up a charity to elevate the weakest members of society in the darkest moments of their lives.
You’ve moved on from creating a life of substance to create a life of significance.
Now take a long hard look in the mirror and ask yourself this question.
If I keep doing what I’m doing now,will I get what I truly want?
The Typical Average Business Approach
Mediocre businesses have no control over the money side of the business. They are on the proverbial hamster wheel.
Always chasing the next sale. Always spending more and never getting ahead. Living paycheck to paycheck. Borrowing money to make payroll. Employees, vendors, and even the tax man all seem to be paid. Everyone else gets paid the first fruits of the business. All the owner is left with is the last scraps not even a dog would accept.
Next month will be different. Next year will be different.
But it never is.
As soon as they think they’re going to turn a corner, some unexpected expense hits them like a train. Or they hit that time of the year when sales dry up.
And then it’s tax time and they get yet another tax surprise.
For many people the dream of business ownership becomes a nightmare. Too many things flying in the air as they try to navigate which ones to keep juggling. Money gets tight. They can’t remember the last time they took a true vacation. Long hours almost every day of the week. Nobody gets how hard they work. Nobody truly appreciates the sacrifices they make in an effort to build a better life.
PROFIT = CASH IN THE BANK
There is no need to make the money side of your business any more complicated than that.
If you don’t have cash in the bank, this is a clear sign your Business is in trouble.
Use a Proven Successful Approach
Luckily, for you there’s a solution. Profit First is a simple money management system that will transform the way you look at the money side of your business. With Profit First you narrow your focus on simplifying the money side of your business.
We’ll build on time honored, proven principles of money. If you can master these two keys, you’ll become a master of the money side of your business.
- Pay Yourself First
- Spend Less Than You Earn
The Four Buckets of Money
There are four buckets of money for your business money. Every dollar that comes into your business belongs to one of those buckets. The four buckets of money are
- Owner Pay
- Operating Expenses
Businesses get in trouble when they lose track of where the incoming dollar belongs. The inevitable processes of robbing Peter to pay Paul ensues. Is there any wonder why people get confused by the money side of their business?
When you get the money side of your business right, you ensure your business is permanently profitable.