I’m really lucky that I’m still in business, honestly.
Do you know what my finances were like my first year? Do you know how much I was spending on crap?
It’s not good.
I heard about a book called Profit First in a business podcast, and thank god. I read it, and I did what he told me to. It forced me to look back and see that I was spending 100% of my business income on my business. Worse, actually, more than 100%. Because I would spend my other money on business things too (i.e. yarn, obvi) when I would run out of business money.
I kind of had a hunch that this was true before I read the book. I wasn’t seeing my cash in my business bank account go “up” like I thought it would. It would go up after a market, and then it would go back down. And it never went over a few hundred bucks. And it never felt right.
Does this sound like you?? Yikes! At least you’re not alone! Try not to spend too much time feeling embarrassed. You’re reading this, so you can turn it around and get on the right track before you’re in trouble.
I needed to get smart, and fast. And thankfully the book was an easy read. I hesitated for just a half a second on opening up the new banking accounts like he says to do. And then I actually did that part and things. Started. Changing.
The book gives you a truly brilliant system. We are just wired to spend the cash we see sitting in an account. So we have to change the accounts around to work with our brain.
And IT WORKS! I feel SO good about my accounting now! I am actually finally taking home cash from my business. (And a whopping 60% of my sales, at that!)
There are a s**t ton of ways to justify your prices, your expenses, your accounting system, blah blah blah. But this is going to turn you a profit. Isn’t that what you had in mind in the first place?
And, beyond this, it’s going to make you really think about how you can make the most of your business. This means charging fairly, charging more, finding better customers, not spending money wastefully. It all comes together and makes you a better business owner.
Go read this frikkin book NOW!
Profit First by Mike Michalowicz (Get it from your library! Don’t spend a dime!)
I should be getting paid for this ad, but I’m not! It’s just solid advice that I’m sharing because I want you to succeed <3 Come back and comment your success story!