I want to talk to you about something that has transformed my businesses and my life. And that is this: getting financial control, creating financial management system, creating a powerful profit first system in my businesses.
And as a result, really creating predictability and certainty in my personal life. So about three years ago, I started working with somebody professional who has really helped me turn around a lot of the way I look at my business financials. And also obviously as a result, my personal financials and what this has done has allowed me to achieve a level of clarity, a level of organization, a level of planning and a level of insight that I didn’t have before.
And as a busy entrepreneur, as you know, and a business owner, sometimes we can get into the weeds. We can be high-level, but we’re not always in the details of where the money’s going.
I don’t know if you can relate to this, but for me, I’m always like focused on the top line, right? Like if we grow revenue, everything else gets taken care of, but we need to also look at the other side of it, which is looking at our cost structure, our budgets, making sure that we’re managing to industry averages and various expense categories, and that we’re escrowing, right?
Taking money out of each dollar of revenue we bring in for certain priorities, such as business savings, taxes, profit, right. And obviously op-ex or operational expenses to run the business. So what we’ve adopted with her help her leadership, her name’s Cheryl, she’s awesome. I’m doing this video today too, because yesterday was a payday. So we do paydays and distributions to owners on the 10th and the 25th of each month. And obviously they’re pretty exciting days. But we had a really big profit distribution for the first quarter and one of my businesses and it just got me excited.
It got me, you know, feeling really grateful and feeling really thankful of the systems, the process and the strategy we put into place. And it’s allowed me again, through more clarity, through more discipline and through more strategy, right.
Intentional system
And this is what we call profit-first accounting system. It’s allowed me to plan better for priorities, for trips, for, savings for, you know, business debt pay down for, you know, down payments for new investment properties, for all the priorities in my personal life that are important to me. But before, when I was flying by the seat of my pants and some of my businesses, I didn’t always make those priorities and escrow that money in the beginning. And as a result, I was left as a business owner with the profit of whatever’s leftover. This profit first system is so revolutionary because you’re prioritizing profit and you’re paying yourself first and then whatever’s leftover, you’re running the business with so you can never really overspend.
Budget
So, the book actually that, kind of first introduced this concept is called Profit First by Mike Michalowicz, it’s highly recommended. And again, there’s profit first professionals all over the world that are licensed and certified through rigorous training to help you implement these systems, these concepts, and these practices into your business and into your life. And I’m just excited. I want to share guys, the takeaways are this.
Get financial clarity, you know, create systems and processes, even if it’s not profit first, just having system right of financial management accounting, and what this is going to do for you. It’s going to open up all new opportunities for growth, for, you know, funding, your priorities and passions, and for really achieving your dreams and your vision in life.
So again, to your success, your happiness and your health, as always excited to bring you this quick little message, a strategy tip that I’ve learned, that’s really been a game changer and a needle mover in my businesses and in my personal life. So hopefully this helped, if it did leave a comment, share this or like it, and we’ll talk to you next week.