Money Makers Myth #001 – I can’t make a profit when I am just starting out in business
You’re starting out and have your whole business journey ahead of you.
Which means it’s the best time to ENSURE that you are going to make profit, making profit from the very beginning, and that profit is INGRAINED in your plan.
Because profit is a HABIT and you can develop this powerful HABIT right from the start.
Developing the profit habit NOW will stop you from developing any bad financial habits which can be very hard to break.
At this stage you need to spend most of your time selling and doing; the systems and processes come later (something I wish someone had told me when I started out!).
So how do you make sure you are profitable from DAY 1?
You set up a separate bank account from your main business bank account (starting up and don’t have a separate business bank account – you REALLY NEED TO). This second bank account you can set up as a savings account…and this will be called your PROFIT account.
Then when your clients/customers pay you…transfer 1% of that money into your profit bank account.
Whilst you’re at the bank setting up your profit account, you also want to set up separate bank accounts for OWNER’S PAY (yep – that’s to pay you!) and TAX (yes the taxman gets his share!) and you want to transfer 50% into the owner’s pay account, and 15% into the tax account, with every deposit that you receive (you can do this on a daily or weekly basis – whichever will be the best way for you to keep up this HABIT – I do it WEEKLY, every Friday).
This will make sure that not only is your business profitable from the START, but also that you are getting paid and that you don’t fall short come tax time.
Win, win all round.
Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!
I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!