Okay…I know I’ve said it before, but systems and processes are things that REALLY excite me!
I LOVE them!
They make me happy!
And if you’re sitting there rolling your eyes and thinking, “Here goes Nettie again…talking about systems and processes. It’s time for me to grab another cup of coffee…”
This is a system that you’re going to want to hear about – because we’re talking about your Profit System!
Often, when I talk with my clients, the first “system” they want to delve into is the sales process. I get that. It’s the most exciting one – because when you dial in your sales process, you receive a steady stream of prospects, clients, and sales – all with ease and abundance.
Who doesn’t want that?
On the flip side, one of the most neglected processes is accounts payable and receivable.
Because when things are going well, you trust that money to be in the bank.
And when it’s not, it can be really scary to go online and look at your bank balance. (**Cue the scary music**)
To top it off, you may not be paying yourself enough, consistently – or even at all.
And that’s stressful.
But I’ve learned some concepts that have helped me to create systems so that I’m getting paid.
And even better than just getting paid, I’m paying myself WITH EASE.
Want to know how?
First off, I’m going to give a BIG SHOUTOUT to three of my favorite people who have taught me some invaluable things – Mike Michalowicz, the founder of Profit First Professionals, Amber Dugger with Budget Alchemy, and Brian Rassi with Enstigate. If you want to learn from the best – these people are at the top of the list! And yes, we’ll be talking about these concepts more in-depth at Momentum Live Virtual 2021 (coming up April 28th, 29th, and 30th) – but I wanted to share a few ideas today to get your brain thinking about how you can apply these ideas to your business – and join us at Momentum Live Virtual 2021 with the wheels already turning.
1. Let’s start with Profit First Professionals and what Mike Michalowicz has to say. Mike says that you need to pay yourself first – even if at the start of using this strategy, you are only taking out 1% of your income to set aside for profit. His recommendation is to set up a system so that whenever money comes in, you allocate to: Profit, Your Pay, Taxes, and finally – Expenses.
Doing this helps you see realistically how much money you have to work with and what to cut/add to your budget. It’s a complete reverse of what we usually do – paying expenses first and hoping you have enough left to pay yourself, your business, and the government.
2. Amber Dugger (Budget Alchemy) shares how you turn your cash flow into gold by helping you understand how to determine the right numbers for your business. It can be easy to say that you want to earn 100K or a million dollars. But to start working towards those goals without clearly looking at what you need could leave you spinning your wheels and making little to no progress.
You need to know your business expenses – and what your personal financial needs are – to come up with an accurate number. You then add in the taxes and profit amounts and blend this all with an amazing tool like YNAB. You can then work magic to create a system for receiving and tracking your income – all while applying the concepts of Profit First.
3. Finally, Brian Rassi of Enstigate focuses on cash flow and the vehicles in your business to ensure that you have a little “jingle in your pocket” and can make decisions from a place of abundance – rather than scarcity.
You met Brian in the Tuesday and Thursday emails from this week (and he’ll be at Momentum Live Virtual 2021) – so make sure you check them out for more info or text the word POSSIBLE to 411321 to connect with him.
Here’s the bottom line: When you start ensuring you have what you need financially in your business, it’s the same as putting your oxygen mask on first in the event of an emergency on an airplane. The more you cultivate financial awareness and abundance, the better position you will find yourself in – allowing you to serve your clients better. That’s a win for everyone.
Please comment below. I would love to hear from you.
Being an entrepreneur and business owner is hard! Once you have your business up and running it's not uncommon to hit a few snags: scalability, staff retention, launching growth projects, getting enough sleep!