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You're A...

Payday Dreamer

You know Profit is Possible, and You know You’re Ready.
Let’s get you there!

!

As a Profit Dreamer, we focus on getting you away from “top-line thinking.” No longer thinking and feeling like the Income is the end-all be-all, you will control the business, not income. 

Income is not predictable, and it’s not real (wait, what?! We’ll get there).

I don’t “do budgets.” Budgets are based on income and assumptions. 


We use Profit Plans based on Actual Income so your business is functioning off real money, and you decide what happens and when.
 

The Profit Path from Dream to Reality

We start by cleaning up the accounts, paying you, and making strides towards profitability. 

To do this, you’ll need new skills and practices to implement Today, Next Week, and on an Ongoing basis. They’re all laid out below for you to refer back to when it’s time, but don’t worry, I’ve got you, and I’ll guide you through this journey as well.

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Today 

Let’s have a gut check. How are you feeling about what the company makes, spends, pays you, and owes? Did owes sting a little? Does your business feel all too often like a cash-eating monster? Do you have a hard time thinking about paying yourself, others, and the concept of profit when you know the business owes so much? That’s okay; we’ll get through this- it’s all part of the adjustment out of top-line thinking and into Profit Plan thinking.

How much debt does the company have, how much are you carrying for the company? Be brutally honest and include the interest charges, finance charges, and fees. 

What you can do about it now: 

  • Make a list of all of the debts you currently have, including the current balance, monthly payment, interest rate, and remaining months left to pay. 
  • Once you’re done, assess which debt is most important to clear off your plate and work to tackle that debt first. You can decide based on deadline to payoff, interest rate, or simply how bad it feels knowing you owe the money.
  • Concentrate your payments on completely paying the first debt, then since you are use to that hefty payment amount coming out, apply the same money to the next priority debt on your list.  This is called the snowball method. 
  • Additionally, at each quarterly profit distribution, you can choose to use SOME of your profits to pay down the debt, but you will keep some of that for you to celebrate your business success.  Even if it is just enough for one dinner out, you need to remember to CELEBRATE what you have built! 

 

Next Week

You understand the importance of paying yourself. Either through sales or salary, you’re on the right track to taking care of the business’s best asset: You

 

But are you paying yourself the right amount? Are your tax percentages correct? How about profit percentages and expenses?

 

Using the Assessment found at my subscriber hub, follow the instructions to discover what pay percentage is your target allocation percentage (TAP) and calculate your current allocation percentage (CAP). It’s okay if they are far off. 

 

What matters is you see the difference, and we make a plan to get you closer to the target slowly over time as the business balances. (seriously, slowly, like 1-5% at a time). Each quarter you review your current allocation percentages and adjust up or down 1% towards your target percent for that category. 

 

Remember, this is a marathon and not a sprint.  Each quarter you will make small, sustainable, yet powerful adjustments that will gain momentum and lead to increased profitability, decreased debt, and noticeable returns in your quality of life!  

 

The finish line is yours for the taking. Let’s set the pace and get ready to cross the finish line.  

Ongoing

You keep hearing me say Profit, so let me take a step back and make sure we’re on the same page. 

 

Traditionally, Profit is the financial benefit your business gets once income is received, and expenses go out. It’s what’s leftover. Nothing tricky there. 

 

But with Profit First, we will set Profit aside before we even look at our expenses.  

 

Each time income comes in, we will set aside our profit portion, and quarterly we will take our distribution.  Yes, quarterly, not annually.  

 

Celebrating accomplishments deserves recognition on a regular basis!  With this process, you will have steady build-up of profits that you get to decide what to do with! Remember, this isn’t a budget; we’re making real plans with real money. How? Using a Profit Plan.

 

Profit Plan is what you are intentionally going to do with those Profits. 

 

Most owners spend the money with no real long-term focus. Like packing up food into containers with no label and shoving them into the back of the fridge- it’ll get used before it expires. Someone will grab it, right?

 

But when there’s no planning, you get excited about all those cash leftovers and see a big feast with no thought for potential famine. Like when you see plenty of food containers in the fridge and being busy, you don’t worry about heading to the store- there’s food in the fridge, no worries about portioning it out, dedicating it for certain meals, or whether it’s gone off already. You just know it’s there and dig in as you please.

 

So what can you do today? Look back over the last year of your business- yes, even a crazy “unusual” year. What are your cycles? Do you have big projects with upfront pay and backend expenses or the reverse? Long gaps between projects? Depends on how much you hustled that month? Seasonality? Or is it steady? Predictable or sporadic? Whatever happens for you, make a note of the ins and outs, ups and downs of your money inflows and outflows. 

 

After you’ve written out your cycles, the goal is to make your Profit Plan. Upfront, before you need it. Like if you purposely have lots of food leftovers so you don’t have to make lunch or dinner for the next two days to concentrate on a big project versus accidentally having food leftover on Mon and finding it on Fri or needing it for the week, but you ate it all on Tues. 

 

You make an intentional decision and stick to it. 

 

Profit goes to the owners, and you can take the distribution and either put it in your pocket or funnel it back into your business. Where do you need Profits to go?

 

Remember when I said we set profit aside monthly and quarterly because it’s done in small amounts on a regular and consistent basis? You’ll have more profit during the times you made more money and less when you made less money. 

 

So if your business has the potential for huge revenue swings, like the kind that may mean the business can’t always pay its own bills, you need to create a Profit Plan that lays out how your profits are to stay set aside to fall back on so you don’t have to dip into personal funds or take on personal debt to save the business. 

 

And when the business has a cash windfall season, you have a predetermined plan on how much goes to you to reward you for your hard work, like for the brand new flooring you’ve been dreaming of every morning when you wake-up!  

 

What’s your strategy? Your long-term plan to avoid stress. 

Not reactionary and not changed on a whim.

 

No matter your current financial reality, your Profit plan will grow and change with you.  Each quarter you will look at your percentages and make any adjustment to get you closer to your TAPs.  And maybe you have big goals to grow, and it is time to add a person to the mix.  That dream OBM doesn’t have to be so far away with the right Profit Plan in place!  And with the right Profit Plan in place, you will know exactly when you can afford your dream new hire without any uncertainty of how you can cover the expense!  

Meet Christina, Your Profit Guide

I have a passion for entrepreneurs who have so many plates in the air while doing so many things that money and how to manage it are overwhelming. 

You can’t always afford to have someone come in and fix everything. Sometimes you can get advice from people, but sometimes you just need a very basic, quick, and simple system to follow. 

That’s my Permanently Profitable system based on the Profit First book. And creating Permanently Profitable systems for you is why I’m here. 

When you need free resources and some questions answered, I’m here for you in the Permanently Profitable Facebook Group

If you’ve read the book and need some clarification and walkthrough of the system, I have a course.

If you want a team of fellow business owners working through the process with you, there’s a boot camp option for the course too.

Whichever way you need support to get Profit First implemented into your business, so you have a system in place to become Permanently Profitable, I’m here to help you create it!

Curated Resources for You

So honored and pleased to be your guide,

Christina Springstead, MBA, CPFP       

Profit Coach & Strategic Bookkeeper

Springstead Solutions

www.SpringsteadSolutions

  

P.S. Keep an eye on your inbox. You’ll receive an email with a link to this page so you can refer back as you need.