After all it is YOUR BUSINESS!!
The Problem: A backwards formula…
Sales minus Expenses equals Profit is a flawed formula. This put’s profits as an afterthought instead of a strategy.
Standard financial statements ignore the problem of human behavior around the numbers. We want to introduce you to a system that acknowledges the way you should think about money, and build a strategy around ensuring profits and managing expenses.
Why do we take our profit last? Because that’s the paradigm we’ve accepted since accounting was invented in 1494.
Wow, that’s over 500 years ago!!
The same behavior that tells us to take our profit last can be used to turn that around and take out our profit first. Does it work? Yes. How do we know? We have proof. Consider how you fund a 401(k) plan. Do you take the contribution from your paycheck before, or after you get your net pay?
We even use Profit First ourselves in our business, and you know what? IT REALLY WORKS!! And we can tell you story after story of how well it works for our clients.
In fact, we think so highly of Profit First that we want you to have the first 2 chapters of Mike Michalowicz’s book, PROFIT FIRST!!
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Ok, so let’s get serious here…
What if we could show you exactly how to guarantee your business is profitable both now, and in the future? Did we get your attention? Great!! Fuel Accountants are CERTIFIED PROFIT FIRST PROFESSIONALS!! Click here and set up a NO CHARGE meeting to get the details…
More about Profit First
If this is the first time you’ve come across Profit First, let’s go over a few details about it.
Profit First starts out as an excellent, easy to use tactical cash management system. And yes, we use Profit First in our own company. Think of the system in its most simple sense as a series of envelopes that in reality are individual bank accounts. This is the basic system that makes up Profit First.
The Revenue Envelope
This is the account that receives all the revenue from your sales. Everything lands here first. The revenue account then becomes the pivot point for allocating your cash into other areas. From here you will move money into other envelopes that serve you and your business in various ways. And you allocate the funds using predetermined percentages.
The Profit Envelope
This is the envelope that receives your profit allocation. We insist that you take that out of your revenue account FIRST, NOT LAST!! That way, you are guaranteed that you are making money. Yes, it might start out as a small percentage. But over time, as you bring your company into alignment, the percentage can grow bigger.
Owners Pay Envelope
This envelope receives its percentage share of revenue that represents the owner’s paycheck. WHAT? THE OWNER ACTUALLY GET PAID? Yes, just like the rest of your employees, you are working in the business as well as owning it. And as such, you deserve to get a paycheck for your work just like everyone else.
Tax Envelope
This is the envelope that receives the funds that will be used to pay your income taxes. Nobody likes to get an ugly surprise at tax time and not have the funds available to pay their tax when it’s due.
Operating Expense Envelope
Now we come down to your operating expenses. This is the account that receives the funds that get paid out for all the regular operating expenses including payroll, occupancy costs, office expenses, etc.
Here’s how we do it.
Once we complete that, we do the initial calculations to come up with the proper allocation percentages.
Next we come up with a strategic plan for how you want to transition the business to the next level.
Finally we use Profit First to tactically manage your journey to achieve your strategic dreams!!
How does all that sound? If you like where that is going, book a FREE CONSULTATION and see if we are the right team to work with…
