Does this sound familiar?
- You're working harder than ever, but you can't tell where the profit went
- Money's in the account one week and gone the next
- You haven't taken a steady paycheck in months because the business eats it first
- Tax bills catch you off guard, and you scramble to cover them
- You're profitable on paper, but the bank account never shows it
What is Profit First, in one sentence?
Profit First is a cash management system, created by Mike Michalowicz, that changes the order of the formula you run your business on:
- The usual way: Sales minus Expenses equals Profit. Profit is whatever is left over, which usually means nothing.
- The Profit First way: Sales minus Profit equals Expenses. You take profit first, and the business runs on what is left.
That one change is the whole system. When profit comes out first, it happens. When it waits for the end of the month, it does not. The accounts, the percentages and the rhythm are how we make that change real in your business.
How does Profit First work day to day?
Instead of one bank account where everything blends together, your money gets divided on purpose every time it comes in. Each account has one job:
- Income: everything you earn lands here first, then gets divided up.
- Profit: your reward, set aside every time money comes in.
- Owner's Pay: a real, consistent paycheck for you.
- Tax: money for taxes, waiting before the bill arrives.
- Operating Expenses: what is left runs the business, on purpose.
You pay yourself on a schedule instead of whatever is left over. Your taxes are set aside before the bill shows up. And every quarter you take your profit: a real distribution out of the business and into your pocket. Our guide to the Profit First bank accounts walks through each one.
What does a Master Certified Profit First Professional do differently?
Reading the book is the easy part. Setting the right percentages for your business, keeping the allocation rhythm going when a big bill lands, and adjusting as you grow is where most owners stall. That is the work I do with you.
I am a Master Certified Profit First Professional. In a video endorsement he recorded for Right Way Profits (you can watch it below), Mike Michalowicz says fewer than 100 individuals and teams have reached Master level. Profit First Professionals, the organization that certifies coaches, lists me as a Profit First Master certified coach.