Risk & Business Magazine General Insurance Service - Page 24

PROFIT FIRST

How Profit First Grows Your Business

BY MIKE MICHALOWICZ

If you think you can ’ t grow your business because you ’ re taking profit first , you ’ re wrong .

I know , I get it . From a mathematical standpoint it may not make sense . Until you do it .
Hundreds of thousands of businesses have implemented and amassed incredible growth through Profit First . Something is working !
Some small businesses are afraid that if they take their profit first that they may impede their growth trajectory . This is a huge Profit First Myth .
The data doesn ’ t lie . Small businesses that implement Profit First grow faster than their contemporaries . This is because while it may not make mathematical sense immediately , it does make behavioral sense .
Profit First is a cash management system , which forces new management of your behaviors , too . Instead of paying your expenses first , you allocate a portion of your money to your profit account . This restricts your spending , and you become more selective in how you spend and what on . You will become more aware of your return in investment and the choices you make .
Conversely , when all the money in your business is available to spend , you will . And your profit account will sit empty . Ouch .
Summary ? Businesses that implement Profit First grow faster because they are more focused on how they use their money . Be like them !
If you need some guidance on where to start , check out this Profit First One Sheet ( https :// bit . ly / 3qe8FSl ), which has an awesome outline to get you started . And as always , working with a Profit First Professional can help ensure you ’ re doing Profit First right !
Wishing you all the profit ! You ’ ve Got This ! +
Mike Michalowicz is the entrepreneur behind three multimillion dollar companies and is the author of Profit First . He is globally recognized as the guy who “ challenges out-dated business beliefs ” and teaches us what to do about it . To learn more about Mike and get access to a treasure trove of entrepreneurial tips , visit MikeMichalowicz . com .
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