Ditch Your Budgets and Try This InsteadNov 13, 2023
Today, Shannon dives into the concept of Profit First, coined by Mike Mccallowitz in his book of the same name. Instead of the typical revenue-spending-profit approach, the Profit First philosophy suggests prioritizing profit over operating expenses.
Now, we get it. Budgeting can sometimes feel restrictive and old-school, like going on a diet. But what if we told you that there's a better way? Shannon introduces the idea of crafting a profit plan, where you set targets for different expense categories like people, operations, and client fulfillment. It's like creating safe places for your money to go, while still keeping your eye on the prize—your business growth and financial success.
And here's the best part: a profit plan connects your financial behaviors to your goals. It's not just about controlling costs; it's about making sure your spending aligns with your aspirations. So, whether you're working towards launching a new product or expanding your customer base, your profit plan will guide you towards the right financial decisions.
Ready to give it a try? Shannon walks you through the process in detail, showing you how to develop your own profit plan using QuickBooks or any other online bookkeeping tool. It's a simple yet effective tactic to bring more clarity and accountability to your business finances.
The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.