Profit First: Laying a Solid Financial Foundation for Your Business
One of the best things I did for my sanity and my business was to decide how I was going to manage my money.
I’d heard horror stories about taxes, and I was NOT going to let that be me.
Using this framework has meant…
*When it’s time to pay taxes, I always have the money
*When I want to invest in training or my own professional development, I can look in my operating expenses account and see what I have to work with.
*I never have to worry about my business jeopardizing the financial health of my family/personal life—because those buckets are separate.
And as if that wasn’t enough, it’s helped me price my offers. Because if I know that 50% of every dollar is actually coming to me, and the rest belongs to taxes, operating costs, and profit, then I can decide how much I need to take home and double it to be in the clear. (There’s a little nuance here, but trust me, it works.)
All this to say, if you haven’t read the book, and you're in business or going into business for yourself, add it to your list.
I'm also including an affiliate link to my bank (Novo) because they automatically split every deposit I make into the appropriate buckets--even easier. If you open a business account with them, you and I both get $40.
Note: I’m not an affiliate of PF. Just sharing tools that have helped me along the way.