The GAAP (Generally Accepted Accounting Principles) formula for determining a businesses profit is SALES – EXPENSES = PROFIT. It is simple, logical and clear. Unfortunately, its a lie. The formula, while logically accurate, does not account for human behaviour. 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 cheque to cheque survival .
With Profit First you flip the formula to SALES – PROFIT = EXPENSES. Logically the maths is the same, but from the standpoint of the entrepreneurs behaviour it is radically different. With Profit First you take a predetermined percentage of profit from every sale first, and only the remainder is allowed for expenses.
Sounds simple right? It is, we can give you all the tools and systems to help implement this system within your business.
As they say though the proof is in the pudding. Click here to arrange a free profit maximiser session. We will assess where you stand now and give you actions that you can immediately use to grow your profits. We are confident that you will be so impressed by what we can do for you, you will want to work with us going forward.