It’s been a while since my last post – but that’s not to say things have been slow. Quite the contrary. For the six months or so, I’m beginning to see the fruits of my labour with regard to implementing a couple of new philosophies into my business to address areas of weaknesses that I was looking to flip into opportunities.
The first was Profit First. I discussed this here in June. Overall this has had an extremely positive impact on my business, but I still lack the discipline to make it habitual and automatic. I set up multiple bank accounts and a Google sheet to track the periodic withdrawals. I’ve also been “mostly ok” with regard to taking care of the various transactions according to the Profit First schedule. What threw me is the fact that I landed a significant piece of business and it threw off my numbers…a lot. Profit First is based on slicing the revenue pie (sales) into different categories based on set percentages. Because my revenue pie got an expected (but certainly welcomed) bump, I didn’t know what to do. In hindsight I should’ve simply transferred the “additional bump” out of my account and treated the month like any other.
The additional bump in my revenue (sales) account is still there. It’s in my Quickbooks account. It looks completely out of place; I’m not used to it. I think I have a scarcity mindset because even though I know it should be out of there (and used to pay down some business debt or invest in an assistant or focused marketing campaign), I’m struggling to let it go. It provides security.
Over the coming weeks, I’ll be looking to get back on the Profit First bandwagon and attempt to create a more reliable system to ensure the bi-monthly distributions are made according to the (proven) Profit First system.
If you run a small business, I really do recommend Profit First approach to tracking your business finances. Even with my scarcity issues, the fact that I have seperate accounts for my production, payroll and operating expenses has made things significantly easier to manage.
The book is available on Amazon.
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