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Profit is a Habit, not an event

profit profit first work on your biz Apr 29, 2022

 Did you know that business owners need to get paid for their business too?

If you have read the Profit First book (or heard about it) you will know that the basics of the Profit First method are to set up bank accounts to split up your money, so that you don't spend it all on stuff.

It's like the Barefoot Investor, but for businesses.

However working with a Profit First Professional means that you get more than just the bank accounts... you get a plan to make a profit every single week in your business.

A plan for how you are currently spending your money, and how to transition to a new way of doing business, so that you can do more with your money.  So many people live week to week in their businesses - just scraping by enough to pay staff or bills, and then get freaked out by having a tax bill come in.

Using a Profit First Professional means that you get guidance and support to help you determine what is important spending, and what is not important spending.  At Northwest Accountancy, as tax agents, we like you to make sure you have enough for all your taxes, and there's no "Tax Man" surprises - and it is a joy to pay the ATO because you have enough money set aside.

A Profit First Professional also wants your business to pay you.  There are so many small businesses out there that aren't charging enough to pay their owners a fair pay for the work that they do... and that's not fair for the owner.  There's so many excuses that come with this:

  • I want to look after my customers and not rip them off
  • It's just a hobby
  • I don't need money (my partner earns enough)
  • If I earn too much I will have to pay tax 
  • If I earn too much I will lose my benefits (Centrelink / child care/spouse payments...

We like to bust this myth of "I don't have to charge more" by asking what would you get paid if you were doing this work for someone else?  By paying yourself it makes you more accountable for your time and your energy, and you get to set boundaries.  You also respect the business a bit more and it can help your self-esteem.  (Yes - all that from paying yourself!)

By making Profit a habit, you can see consistent results in your business, and know that your business will survive any downs and thrive in any ups.  It will allow your business to plan for growth and show you quickly if you need to make any huge adjustments required to keep your business open when sales slump or decline over time.

To get guidance from us about how Profit First can help your business, book an appointment here: Book Here

This blog is intended to provide general information only and should not be construed as legal or specific tax advice for your circumstances. It is always best to get advice from a professional before you rely on anything you read on the internet.

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