I really wish I had come up with this tip.
I didn’t. It was a guy named Mike Michalowicz.
At least, he’s the one who popularized it. Maybe he stole it from someone else, who knows.
Either way, it’s hands down the best thing you can do for your business from a financial health standpoint.
When I say that it can make you more profitable overnight, I mean it.
This one simple decision can change the entire scope of your business’ health.
It’s not really a “tip” either – it’s a method. It’s a process.
I implemented this method last year and it not only improved the health of my business, but it saved my ass after a failed experiment.
It’s called the “Profit First” method.
It’s very easy to implement and immensely powerful. Even if you don’t have a real business yet, set this system up from day one and you’ll thank me – and Mike – endlessly.
I’ve mentioned this system to a couple other entrepreneurs who didn’t know about it and they all came to me months later and said it was the single best thing they ever did for their business.
I’m not hyping this for no reason. I don’t do that. If I tell you something is great, it’s great.
If you want to learn the system, read Mike’s book – Profit First.
It’s a quick, actionable read and it’ll pay you back 1000x+ on the $14 or so slices of chedda’ you’ll drop for it.
How will this system make my business more profitable overnight?
Good question. It sounds too good to be true and we all know what that usually means.
But this method really does work and it has nothing to do with changing your revenue.
Are you hearing that? You do not have to make more money to become more profitable!
The system works by pre-determining your profit and accounting for profit first.
It’s not just a shuffling of the numbers, nor is it about playing semantics games. It might seem like that at first glance, but I promise you it’s much more profound than that.
This one shift in how you account for profit will change everything about how your business operates and how healthy your business is.
Before I tell you how it works, I want to make sure that you understand how businesses normally operate…
Typically, a business brings in whatever revenue it brings in and then deducts all their expenses. Whatever is left over determines whether there’s a profit or a loss.
Obviously, we don’t want to operate at a loss. Healthy businesses operate with a profit.
Side Note: It would also be nice if you could build up an emergency fund, right? And have money that you can draw from to bonus yourself every quarter?
That’s what this system will do for you.
With Profit First, you pre-determine your profit percentage. Let’s use 10% as an example.
Let’s say your business brings in $10,000 in revenue every month.
The first thing you do is put 10% of that into your Profit Account. So, you’re setting aside $1000.
Congratulations, your business just made $1000 in profit!
Again, it’s not just a manipulation of numbers. Your business really did make $1000 in profit because now you’re FORCED to run your entire business on the remaining $9000…
If you can’t run your business on what’s left after accounting for profit first, your business is not healthy.
Using our last example, if you set aside $1000 in profit and can’t run your business on the remaining $9000 (including paying taxes, employees, and yourself!), your business has problems.
Either you don’t bring in enough revenue or your expenses are too high. Or both.
You can’t fix that problem by not profiting! You can only fix that problem by increasing revenue or decreasing expenses.
This one shift in how you account for profit will instantly make your business a sound, profitable business.
And when you operate this way, you’ll quickly build up a multi-thousand dollar savings account which you can then use to create a quarterly profit-sharing plan, either with yourself or with your employees.
That, by the way, is only one feature of this system.
There’s a lot more to it, a lot of details you have to understand, and some other changes you have to make.
I’ll say it again, though. This $14 book will make you a 10,000-fold+ return over the months and years ahead.
Look through this site and tell me how many other books I’ve said that about. The answer is pretty much zero.
If I’m lying, the comments section is open. Come back and tell everyone I’m full of shit if that’s how you feel after reading it…