I started implementing profit first at the beginning of the year, after I listened to the Audio book.
The book got recommended by a bunch of people and I knew I wanted to get better at handling my business finances so I thought I try it out.
The book was really great and there is so much truth in the way he explains the mindset most entrepreneurs have.
If you don’t look at your balance sheet to make spending decisions you might want to try out this model.
Status report: Profit!!
I did make profit before in my business but not real profit or how Mike (the author of Profit first) would define it.
I used the profit the next year to invest in my business and to use it as runway in tough times.
But this last quarter I made a real profit: 215€
I just realized, this is the first time I shared any numbers publicly for my business.
50% of this profit is going back into the business but as a rainy day account and 50% is for me to celebrate :)
I like the new setup of having different accounts and have a separation from Profit, Owners Compensation, Tax and Operating Expenses.
I have a much better idea of the financial health of my business and can make spending decisions based on the amount I have in my OpEx account.
You should try it out yourself!