The #1 Thing Stopping You From Scaling (It's Not What You Think)

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• January 22, 2024

The #1 Thing Stopping You From Scaling (It’s Not What You Think)

Have you ever felt like you’re stuck in the hamster wheel of working endless hours just to keep your business afloat? As an entrepreneur, you poured your heart and soul into building your company, but sometimes it seems like all the profits are going right back out the door as soon as they come in. Or they certainly never end up in your pocket as the business owner! I’ve been there – I remember seeing my tax returns after I started my business and started using an accountant. I saw a profit of a little over $20,000. I looked at the accountant and asked, where did the profit go? How was this calculated? How can there be a profit when I know I certainly never took a profit distribution? 

That’s where Mike Michalowicz’s book Profit First comes in. The core idea is simple yet revolutionary –  by changing the way you think about and handle cash flow, you can finally break free of that hamster wheel and start seeing real profits. Michalowicz introduces the genius concept of paying yourself and your business first before any other expenses. This forces you to focus on the bottom line from the get-go.

Many business owners have found Profit First to be a total game-changer. By simply changing how cash flows through your business from day one of each month, you remove the scarcity mentality and unlock a world of possibility. No longer confined by budgets or past habits, you have the freedom to reinvest, hire more talent, upgrade systems, and rapidly scale up services or products. For leadership teams, Profit First instills financial discipline that cascades through the entire organization. Employees feel motivated when they understand the business is thriving and customers benefit from happier, healthier operations. It’s a true win-win.

Here are 10 key strategies Profit First recommends to maximize your earnings:

1. Set up separate bank accounts for expenses, taxes, and profits to automatically route money to the right places. 

2. Determine what percentage of revenue will be allocated to each account before any money comes in. (Profit First provides guidelines on this.)

3. Pay yourself a reasonable salary as the #1 priority. Too many entrepreneurs neglect this.

4. Automate transfers so the money flows without thinking. Out of sight is out of mind.

5. Track expenses line by line to optimize spending. Many costs can be reduced or eliminated. 

6. Leverage the power of small, consistent profit-taking over time. Even 5% of revenue adds up.

7. Adjust the allocation percentages as your business grows and matures to maintain steady profit increases. 

8. Communicate profit goals to employees for buy-in and team motivation. 

9. Reinvest some profits strategically into high-ROI areas like marketing or technology.

10. Stay disciplined! It takes time to change habits, but the rewards of Profit First are life-changing.

If you’re ready to break out of the scarcity mindset and start growing a genuinely profitable business, Profit First is a must-read. It provides a step-by-step system to optimize cash flow in any organization. The system works in any industry and business model, from sole proprietorships to large corporations. It’s about changing your mindset and processes, not overhauling your whole operation.

Take control of your finances once and for all! As Michalowicz says, “A business is meant to be profitable – it’s what allows you freedom and impact.” Take the first step towards securing your financial future for years to come. Your business, your employees, and your customers will all benefit as profits soar higher than ever before.

Profit First is both a quick read and a book to return to frequently as a reference guide. Its concrete steps, examples, and exercises make the strategies easy to implement. I initially bought the book and implemented it on my own. It was very eye-opening. As I dug into it more and saw more and more value, I also decided to work with a Profit First Professional. After just two months of getting the Profit First approach in place, I felt so much more in control of my money. I highly recommend getting the book as the first step to gaining financial peace of mind and supercharging profits – all without major changes or upfront costs.

Is Your Business Growing But You Feel Like It’s Falling Apart?

Feeling the strain of business growth? You're not alone. Many successful businesses face these challenges. It's often the little things that cause big headaches. Suddenly, your tried-and-true methods don't work anymore, profits shrink, customers are complaining, and you're constantly firefighting.

The key lies in fine-tuning your systems to support your growth. My 3S Profit Optimizer framework helps to secure more clients, streamline operations, and supercharge scalability. I've helped numerous businesses overcome these hurdles, and I'd love to see how I can help you succeed.

Let’s minimize the growing pains and prevent them from reflecting poorly on your business. To learn how to have more freedom, more control, and more opportunities to earn income take action now and click below.