Over the years, we have worked with many businesses and their owners. We've noticed one thing - businesses typically do not become profitable by accident.
Only businesses whose owners implement and follow a strategy enjoy profits. Most business owners wind up working for their business instead of putting it to work for them. In fact, many small business owners go years without making a market wage. That's just unacceptable!
Enter Profit First, an easy-to-work system that gets businesses on track to ensure profitability.
It's based on the book, Profit First, by Mike Michalowicz.
Dana McGuffin CPA is one of the select few, nationwide, that have received a certification in Profit First.
We will guide you with methods to greatly increase the profitability of your business. Of course, we will manage your accounting, prepare your tax returns and help you with your books - but any accountant can do those things. We also provide the most important financial factor - maximizing your profits.
How Does Profit First Work?
Profit first changes your focus and your habits by literally putting your profit FIRST.
The standard formula for determining profits in business 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 leftover, 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.
With Profit First you change your focus in your business to PROFITS and 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.
The Author of Profit First - Mike Michalowicz
Mike is the author of Profit First, The Pumpkin Plan, Surge and what BusinessWeek deemed the entrepreneurs cult classic, The Toilet Paper Entrepreneur. He is a former small business columnist for The Wall Street Journal, speaks internationally on entrepreneurial topics, and is the creator of the Profit First method. Mike is an active adviser on Profit First to Dana McGuffin CPA.