Because profit is what feeds your purpose!
DIY CASH MANAGEMENT SYSTEM
For entrepreneurs looking to do it themselves.
CASH MANAGEMENT INQUIRY
Review of your current systems/cash management.
DIGGING IN CONSULTATION
Advisory services for optimizing cash flow options in your business.
The Courageous Entrepreneur is here to help businesses to avoid the pitfalls many entrepreneurs fall into and establish solid foundations for financial security that will benefit them for years to come.
How Does Profit First Work?
What is Profit First?
Essentially, Profit First strategies focus on maximizing the amount of profit your business makes at the end of each year. It’s that simple. Rather than focusing on revenue, we spend much more time planning for money your business takes in after expenses, costs, and taxes.
Here’s the basic formula your business probably follows:
Sales – Expenses = Profit
The problem with this formula is that most businesses finalize their 12 month sales period only to find that their profit margin is much lower than desirable. So, why not plan for profit first?
Sales – Profit = Expenses
By planning for the profit margin we want to achieve, we can better determine the figure for expenses. With that in mind, we can more easily plan out our business outcomes and build strategies that meet the expenses forecast.
The only difference between the two formulas above is psychological. The basic formula we all know leaves you at the mercy of your expenses. The profit-first formula allows you to focus on staying on budget with expenses to achieve your desired capital after expenses. Ask yourself, which is more empowering?
Why Profit First?
Profit First is designed for long-term financial success by shifting your mentality from running your business passively to actively taking control of its destiny.
The basic principle is this: you account for your profit, taxes, and income first. Then, whatever figure is left is your budget for expenses.
The idea is to create a strategy that helps your company operate smoothly within the available funds coming into your business. This includes some planning, reviewing your income areas, and becoming more efficient while assessing which expenses would be better to eliminate.
By taking these steps, you gain control over your financial performance, and that’s a game changer!
Profit First Business Consulting
Profit First business consulting has a unique approach to ensure your business’s financial success. With the help of professional consultants, we can formulate a unique strategy that sets your business up for long-term success.
Profit First strategies are built to deliver results. Using their wealth of knowledge from various industries, our Profit First consultants will work closely with your team to implement effective strategies that drive consistent financial success and take your business to the next level.