Profit First Quick Start

THE PROFIT FIRST FORMULA

The GAAP (Generally Accepted Accounting Principles) formula for determining a business’s profit is Sales – Expenses = Profit. It is simple, logical and clear. Unfortunately, it’s a lie. The formula, while logically accurate, does not account for human behavior. In the GAAP formula profit is a left over, a final consideration, something that is hopefully a nice surprise at the end of the year. Alas, the profit is rarely there and the business continues on its check to check survival.

Sales – Expenses = Profit

Sales – Profit = Expenses

With Profit First you to flip the formula to Sales – Profit = Expenses. Logically the math is the same, but from the standpoint of the entrepreneur’s behavior it is radically different. With Profit First, you take a predetermined percentage of profit from every sale first, and only the remainder is available for expenses.

Download our FREE  Guide to Profit First, and take your first step toward managing cashflow like a ninja!

THE BAD-ASS BUSINESS CHECKUP
PROFIT FIRST QUICK START GUIDE
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