#22 - Profit First

@joshykobyashi explores the "Profit First" method by Mike Michalowicz. This financial management approach urges businesses to prioritize profit over operating expenses. Here's a concise rundown of the key points:Bank Accounts: Establish five distinct accounts - Income, Profit, Owner's Compensation, Taxes, and Operating Expenses.Revenue Allocation: Divide revenue into these accounts following predetermined percentages.Allocation Percentages: Define percentages based on real revenue; e.g., 5% profit, 50% owner's compensation for businesses up to $250,000.Regular Transfers: Move funds on the 10th and 25th of every month according to allocations.Profit Distribution: Reward yourself with 50% of the profit account's balance quarterly.Expenses Management: Operate within the limits of the Operating Expenses account, encouraging efficiency and cost-cutting.<br/>The "Profit First" model is an innovative but simplified approach. It might not fit all business models and should be employed with a broader financial strategy, preferably with professional financial consultation.For further insights and practical implementation strategies, tune into this episode.Link to resources: Client Management Template Pack