Save for Your Next Big Investment
Reason #9 for Implementing Profit First in 2024 - Save for Your Next Big Investment
“I can’t afford that” -- have these 4 words ever halted a conversation for you? Have you thought or said them (multiple times) in relation to how you spend your time or money -- both in your business and personal life?
Stop! Stop putting an end to those goals, dreams, aspirations before they even have a chance to manifest the life you want.
Want a new piece of equipment? Upgrade your CEO work station? New work truck? Administrative Assistant?
So it's time to finance more debt, right? I hope not!
With Profit First, we communicate in CASH. Real, cold, hard cash – every dollar that comes into your business has a purpose. We save or spend this money based on that purpose – and it lives in a designated bank account. Here’s the secret: NAME your bank accounts….and if in doubt, open an account!
Want to invest in something you don't have the cash flow for -- let's plan it out! Open an account and walk it back! Get clear on those numbers and stowe away that nest egg for the things you intend to create in your life and business.
If you only have a “checking” and “savings” account -- you will overspend in one and be afraid to touch the other. It’s true.
Here’s to Implementing Profit First in 2024 -- and doing it right!
Profit First starts with these 5 Foundational accounts:
Income (Deposits or Revenue)
Profit
Owner’s Compensation
Tax
Operating Expenses
In the later stages, we open these two vault accounts:
Profit VAULT
Tax VAULT
In the advanced customization, we can consider these accounts:
Payroll
Growth
Team Bonuses
Emergency Fund
Marketing
COGs (Cost of Goods) or Contractors
Prepaid/Escrow
Not all of these accounts are necessary – depending on your business model, we may recommend the advanced method of opening up more bank accounts for strategic cash flow. If you want to plan for GROWTH or RE-INVESTMENT in your business – let’s meet you where you are! Saving a portion of your revenue now will ensure your success in the future. This doesn’t mean we advocate against using debt or financing – we just want our clients well informed. You can set a goal to save 2 months salary for a new team member. Or a 10% down payment on a new asset. The possibilities are endless!