Do you ever wonder where all your revenue goes each month? You’re not alone. If you run out of money, your business will go under and be among the 85% of businesses that fail in the first five years.
It’s not a lack of revenue that’s the issue, which is helpful because more revenue always seems to be a challenge.
Nope, the key to business success is putting up guardrails and sticking to them.
One of the best things about using the Profit First system is profit distribution time. Being the owner of the company, you get to take a profit once a quarter and use it as you wish.
But sometimes, we hear from clients that they’re not making enough profit, or that they want (or need) to be able to take more in profits every quarter.
Essentially, the owner’s profit distribution “isn’t enough.”
You’ve heard the saying that there’s no better time to plant a tree than 20 years ago. And the next best time is right now. That holds true for so many parts of life and business. The best time to quit smoking, eat better, start exercising, save for retirement… You get the picture.
And so, when I hear people talk about starting to work the Profit First system and they decide to wait until January 1 or next quarter or whenever, I want to shout at them that NOW is actually the best time to start. Today.
I don’t know what it is about summer, but it always feels like a great time to reset. It’s midway through the calendar year, things seem to move a little slower, and business definitely slows down as clients take off for vacation. (Which I hope you’re doing too!)
If summer is a stressful time because you’re not bringing in the revenue you want, there are some things you can do to combat this in the future. If you’re already in the thick of slow months, we have some ideas for how to get more people in the door right now.
There can be a lot of confusion around who should be on your business money team and their roles (including your role as the business owner). But without a solid team, you may feel confused about your finances–which is never a good feeling.
No matter how long you’ve been in business, it’s time to pull together your team now or revisit the individuals who are supporting you.
If you’re working to grow your business, you probably have goals that you check in on from time to time. (I hope you have goals you’re checking in on!)
One of two things might happen when you check in on your goals: You discover that you’re on track or ahead of schedule…so you sit back and rest on your laurels. Or you’re so far off from meeting your goals that you want to give up.
Of course, there is also the business owner who’s on track and wants to push a little harder. Or who is far from hitting their goals and wants to double down.
All of these examples have something in common: The business owner needs to re-evaluate their goals to figure out what’s next.
If you’re a Profit First business, you get to take profit distributions four times a year. It’s exciting to see the fruits of your efforts and be able to boost your income as the business owner.
It’s honestly the best thing about Profit First, that you’re not limited by your owner’s pay (though it is important to pay yourself a living wage!). You get quarterly “bonuses” that you can spend as you wish.
You might ask, why not pay yourself more each week or month and enjoy the extra income in the moment…so you don’t have to wait until the end of the quarter? Because your profit distribution is not part of your salary. Even though it might look that way on your taxes.
You know tax time will come every year, but for some it comes four times a year. That’s right…quarterly taxes are due four times a year for those who expect to owe $1,000 or more at tax time.
The trick is determining your tax liability, which can be tricky when done right.
If you’ve experienced debt in your personal life or your business, you know that it can feel suffocating. Your financial walls are closing in on you, and you’re ready to get rid of it once and for all.
We’ve talked before about good uses of debt vs. bad uses of debt, and there’s an important distinction. But aside from that, we think it’s important to let go of consumer debt and other debt sooner rather than later.
But how exactly? We can and will help you with this. But before we get into our recommendations for conquering debt, we need to lay some ground rules.
As the days grow warmer and people start taking vacations, wellness businesses often take a hit. Therapy slows down and people opt for outdoor workouts instead of the gym.
Hopefully you’re prepared for the financial slowdown that comes with seeing fewer clients. That means having a subscription-based revenue model and having an advanced account that holds your summer expenses for you.
But with the summer slow-down, your time opens up for so many opportunities behind the scenes while still allowing you to keep a steady paycheck. Let’s explore each one of these!