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 $100 that comes in sounds like a good idea, but . . . I’m not profitable! Where’s the profit that I’m going to take this from? Watch our Law Firm Director Liz Stevens address this question:

Video Takeaways

  • How business owners can stop working harder year-over-year without taking home more or making their lives better
  • The reasons why your business isn’t profitable (hint: there are only 3 reasons)
  • The secret behind where your profit really is

Take Action. Move your profit percentage, a.k.a. your profit allocation, to a separate and hard-to-access account just for profit. You calculate this profit allocation based on what you need the business to generate so you can live the life you want to live (don’t worry, we’ll cover how to do that in a future segment). 

Next Week! We’ve now recognized that Profit First is all about changing our mindset and letting the business struggle — so we don’t have to. Next week we discuss making a plan so our business survives by cutting waste in:

Dynamic vs. Static Overhead. What you can cut, and what you must never cut!