Profits 101
In your business, do you celebrate the end of each quarter? Or is it a dreaded time similar to April 15th when you wonder how much you are going to owe in taxes?
Profit Foundations?
If you are not prepared to earn a profit in your business, chances are you are just barely getting by and being a slave to your business instead of your business being a slave to you. In the book Profit First, Mike Michalowicz breaks down with intensity how to start earning a profit in your business right away, regardless of how much money you make.
One of the principles is to have a profit account.
Why do you need a Profit Account?
A profit account has many uses that will make your business and personal life that much easier. It’s like having a super fruit with tons of benefits that you wish someone had told you about when you first started your health journey. (Hint: think turmeric)
As a health coach, you can use a profit account:
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to help create cash reserves for your business
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to pay your team that bonus you having been wanting to share with them, but didn’t know how
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help to pay off debt
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Play time money
The idea behind the profit first methodology is to set aside money with every deposit which goes to profit, tax, the owner's pay, and operating expenses. At the end of each quarter, you get to decide what to do with that money no matter what the number in the bank account says.
How do you get started?
The first thing you need to do is to grab your calendar and book a date to create a profit account. A profit account is different than any other account that you create for your business and this can be done where you currently bank or at a different banking institution altogether.
The idea is to get started by creating the account so that when the next deposit come in, you are telling your money where it’s going, instead of it just disappearing without purpose from your business account.
What’s next?
When it comes time to distribute your profit, then you need to take action and move the money into your personal account. You may be tempted to hold. onto every red cent since you are just starting but don’t do it.
Set some intentions of what you want to do with that money before the quarter is over and then at the end of the quarter, get it done. Play! Have fun! You have my FULL permission and you are welcome 😉
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