Doable Profit First Method for Marketing Businesses
Profit First can help you grow a healthy and financially profitable marketing business. But only if you consistently follow the plan. However, I’m not a Profit First purest. Call me a wimp, but I only have so much attention I can give to something. And setting up 15 Profit First accounts felt overwhelming.
When asked what workout schedule would give you the most gains, Jeff Cavaliere owner of AthleanX and physical coach for sports professionals, caught my attention. He didn’t give a prescriptive way you MUST workout to see muscle gains. He said the schedule you should follow to see the most progress, is the schedule you WILL follow. In other words, what works is what’s doable.
I think Mike Michalowicz would approve. After all, it’s exactly what he offers in his Profit First book. He says to start by making a 1% allocation to your profit account. Because it’s a DOABLE amount. One you’ll keep doing week after week, month after month.
And that’s what I’m advising here. Set up the accounts that are doable. (If you’re picking just 2 extra accounts outside of your operating account, may I suggest the Profit and Tax accounts.) And then make consistent allocations to each.
The Most Important Profit First Accounts
I believe the Tax and Profit accounts are most important. Taxes because it’s not your money AND there’s no avoiding those. You’ll feel so much more secure knowing you have money to cover whatever tax bill comes your way! And Profit because you deserve a reward for taking a risk to become a shareholder of a small business.
You can’t get a quarterly profit distribution without allocating that money every week or every month. Doing a weekly allocation takes me 15 minutes. And last quarter, I bought a crawl space encapsulation. Not necessarily a dream, but my house is safer now.
With quarterly profit distributions, you can make one of your dreams come true every quarter. Think about what you would do with an extra couple thousand dollars. There’s a vacation you’ve been wanting to take. There are some people you’ve been wanting to go visit. You have projects you’ve put on the “maybe one day” list.
There’s some teak outdoor furniture I have my eye on. I want the furniture because I want to have family and friends over to my place. I want them to feel comfortable and enjoy creating deeper relationships with each other. That’s a goal I set when I bought my new house. Creating a place that would breathe life into me and foster deeper relationships. Because we all need community in this life.
Profit First Goals
Using Profit First in my marketing business is going to help me achieve that goal, one piece of furniture at a time. Hey, it already helped me buy this house in the first place.
And you can reach your goals too. If you consistently practice putting money in your profit account. And the best way to do that is by making Profit First doable for you.
My allocation day happens every Monday morning. And each Monday morning, when I put the money into the Profit account, I envision that new teak table on my back deck. I imagine the people around it making memories and sharing stories, being vulnerable. Laughing, crying, remembering people we’ve loved and lost. But most of all knowing we’re creating a community of support, love, and connection for one another. That vision makes my weekly allocation, that 15 minutes it takes, doable.
I believe you can make your dreams come true in 15 minutes a week too.
Watch the full video here.