When it comes to your business’s cash flow, there are some things that are out of your control -- when a customer decides to pay an outstanding invoice or the length of your Accounts Receivable list, for example. However, you are in control of a huge part of your business’s cash flow, and we’ve compiled a few tips you might have overlooked. In order for Profit First to work the most effectively in your business, Read More
What "Should" Your Profit Be?
A lot of businesses learning about Profit First ask, and sometimes don’t get a very satisfactory answer to the question “What should my profit be?” How profitable should my bakery, my marketing firm, my construction company, whatever it is, how profitable should it be? What is the percent I should be shooting for? People want some kind of magic answer so they know the number they need to reach. They want to look at Read More
Don’t Grow Broke – Why So Many Business Owners Don’t See the Rewards from their Business
Whenever you grow your business, you spend money before you know the results, or return on that money (i.e. sales). The faster you grow and the more you grow -- the faster that growth sucks cash out of your business! There is only one place money can come from to fund growth, your profits. So your growth can’t exceed the money you have available in profits or you start to “grow broke.” Watch our Law Firm Read More
What you can cut and what you must never cut! Dynamic vs. Static Overhead
When you agree to follow the Profit First system in your business, you decide right then and there to let the business struggle so that you don’t have to. The next step is to make a plan for how your business will no longer struggle, but survive and thrive! How does your business survive? There are two ways. One way is to cut the waste in your business (and make sure you’re cutting the right waste). Watch our Law Read More
Where your Profit is, and how you can be profitable tomorrow . . . and forever
In Profit First you take a percentage of dollars off the top of all revenue that comes in. Before you do anything else, before you pay for anything in the business, you take your profit, first . . . and the business must live on what’s left. A question that we’ve found a lot of business owners asking is, Where is the profit? What they’re really saying is, sure taking a percent in dollars off the top of every Read More
Introducing . . . Profit First Fridays!
In this 12-week series, we share the changes, big and small, that you can make in your business to 1) increase and stabilize your profits, 2) see and manage your cash flow more proactively, and 3) slay the cash eating monster that stalks owners of small businesses. First off … let’s talk about “profit.” Lately, that word has become charged within the business community. How you see profit, and how you Read More
