I clicked through 4 other videos on Profit First before I found yours, and I didn’t finish ANY of them. The creators were dry, boring, no voice inflection, some had no engaging visuals, and some were huge channels. Thank you so much for creating ENGAGING content about business. I have ADHD, and it's extremely difficult to pay attention to a lot of business content because of how dry it is. I'll definitely be subscribing, as I am right at the start of my business.
Very interesting, Dr Tamer! Profit First was the first week of our program ... As you'd be aware, many small businesses people don't even have separate personal and business accounts, so *any* structure of accounts or targeted allocations
Yes, overall this is a fantastic book and a great way to start budgeting and becoming disciplined financially in a small business. I mentioned I even talk about it positively on our Firestarter Programme. It’s just not perfect and doesn’t apply for every condition as the book claims it does. So when implementing it, I always suggest people understand it’s strengths and potentially weaknesses so that they can make the most out of it for themselves.
Yes it’s a great system for those that want a disciplined financial system 🚀 How long have you been using it for? And how many bank accounts do you use?
I've read the book a few times but honestly I've struggled with it. I like how you called out the various bank accounts and systems. I just don't have it in me to manage that logistically. What would you advise around paying yourself first every time? As a small business owner I've had to reinvest quite a lot in my business to keep growing it...how do I reconcile a healthy financial strategy vs a desire to enjoy my lifestyle vs growing a business? 😅
Yes I’ve heard this criticism more than once. And whilst I agree with you, ironically if you are struggling to manage your finances, then a lot of the discipline the book recommends may not be a bad idea to get into the habit and practice of financial management. But I would also say that prefaced to this, you should really identify what success looks like for your business and for you financially. How are you going to source money into the business and what your business model will be. In addition to that then figure out how much money you need personally to survive and plan how you can source that money (revenue, funding, borrowing, credit terms). You really need to have a financial forecast and keep tweaking. It’s at this point where you can begin to identify what budget percentages you need for each pocket of money. If this all sounds too daunting then you have two choices. 1. Admit defeat and follow the book 😆 or 2. Find a programme like our Firestarter Programme that teaches you how to understand to manage your finances and cashflow in you business 😉. Do you want me to do a video on the basics of managing your finances?
For me the whole profit first theory goes against the keep it simple theory. Two banks with five accounts and a huge table with different percentages to keep in mind 🤯 I worked as an accountant so def not afraid of tables and numbers but still
Thanks for the review. I really want to get a handle on this. Is there a better book you'd recommend? Is this a good start before going to a different book? I don't want something that is overwhelming or confusing. I'd like to get control of my income.
Of course it is an money management tool better for frecquent sales and income coming in, off course you need to adapt the right frecuence when you have an special bussines, thats not a negative point its just an rare exception, when you have an bussines you are a salesman, everyday, and ussaly that creates frequent income money!
They say you should have accounts at different banks so you simply add money to it and not see the total amount on a regular basis to make sure you not using it.
Most accountants and bookkeepers do follow this system so maybe just check in with your bookkeeper to see how they intend to utilise the concepts for you
