Profit Maximisation with Profit First
Profit is NOT a Dirty Word!
Traditionally, Profit is the bottom line on one of the financial reports your Accountant hands you at the end of the Financial year – known as a Profit & Loss or Income Statement.
The one that tells you essentially how much of your business income is left over after all your business expenses for the year are deducted.
If you’ve spent more than you’ve made, that’s considered a Loss and a negative figure will grace the bottom of your Financial Statement (not really what we’re hoping to achieve here)
When you do see a Profit at the baseline of those reports, it’s often not what you see in your bank accounts nor can you see where or how you have paid yourself these funds as personal income.
Sprout takes you through the Profit First process in order to fix this common entrepreneurial problem.
Profit First focuses on cash profit and the way cash flows through your business rather than focussing on sales and ‘accounting’ profits.
Profit First works so well because you don’t have to think too hard to manage your cash flow and profitability once you have your system up and running.
The beautiful thing about Profit First is it’s not implementing massive change overnight, but building better money management strategies and organisation around your money habits over time which lead to lasting results.
Without Profit, there are no funds to re-invest or to pay key stakeholders in your Business.
Sprout implemented the Profit First System in January 2020 and after reviewing its success, (Read the Blog here), has undergone training to become a Certified Profit First Professional.
This enables Sprout to offer Profit First services which will ultimately improve the wealth and wellbeing of both small businesses and the people who run them.
Assessment
Begin with an overall review of your finances to determine where your business currently sits on the wellness scale and implement a rollout plan to make lasting changes over a 12 - 18 month period.
The Profit First Assessment takes you through:
*Historic review of your last 2 years financial data to provide a baseline
and identify trends and habits within your business
* Categorisation of Profit, Owners Comp, Tax and OPEX
*Determination of your Current Allocation Percentages (CAP's)
* Review and determination of your Target Allocation Percentages (TAP's)
* Roll out plan to increase CAP's to TAP's over a 1-2 year period
* Review and analysis of financial data to pinpoint area's of concern
* Provision of a written report with findings and suggested areas to review.
Implementation Coaching
Following your Profit First Assessment and the generation of your Roll Out Plan; monthly accountability packages are available to hold your hand throughout the implementation phase and beyond.
Accountability Packages Include:
* Monthly Review Sessions (90 minutes each)
* Weekly Nudge Emails (to help keep you accountable)
* 15min Check In calls to walk you through your first 4 distributions
* Allocations Calculator for quick and easy number crunching
* Unlimited Email Support with 24 business hour turnaround
* Debt Assessment and Elimination plans
Packages and pricing vary depending on individual requirements
