Last year, 2017, was the first full year of running my business for a full calendar year full time.
I loved it. The highs, the lows, and all things in-between was truly a joy and a dream come true. I found quickly that there was more to it than just working every day and having a few clients.
One of the best decisions that I made was to read a book a week. It wasn’t all business. some of it was on marriage, church, the Bible, personal development, and just for fun! I’ve even joined the Ramsey Book Club this year and have had so much fun with that already.
A book that came highly recommended to me was Profit First. I have loved this book, not just because numbers are my thing, but because small business is my thing and I love learning how to make my business more profitable! (Don’t we all want more profits?) I read it and absolutely loved this book. Have I said that already? 🙂
Here is the basic synopsis of the book. You open up 5 bank accounts. Operations. Payroll. Taxes. Profits. Deposits.
All money coming into the business goes into the Deposits. Then, you find out how much it takes to run the business day to day and put enough to do just that in Operations. You put money in Payroll to pay you and your staff. You put 25% into the Taxes account, and you put another percentage into the Profit account FIRST. You learn to run your business on less cash and more profits.
It takes discipline to run a business this way. It takes time. You can’t do everything you want. But. But you have actual cash profits at the end of the quarter. You don’t worry about paying yourself. You save for the future. And, you are able to feel in control of your business.
Try it out! I opened up the separate bank accounts last year and have been implementing what they say, not perfectly, but this year I am putting more intention on it.
You can order the book Profit First, here, buy it from your local bookstore or check it out of your local library!
Do you handle your cash well already? Are you planning on trying out this method? Let me know in the comments!
(This blog post contains affiliate links. That means that if you purchase Profit First from my link, then I will make a small commission. Thank you for supporting my business!)