In today’s episode, Casey Wright will dive deep into the fundamentals of the Profit First Money Management System; it’s based on a book that came out five years ago and Casey has been operating it in her company in the last three years, changing her business as well as her life. If you are interested in having your business serve you this episode is just right for you.
[1:17] The Profit First Money Management System is a creative way to look at accounting.
[2:37] Three great takeaways for Casey’s company resulting from the use of Profit First System:
- Owners compensation
- Opening up books to the leadership team
- Structure roles based on the financial targets that each role should meet.
[11:28] The general formula for accounting is: Sales minus expenses = Profits is turned upside down: Sales minus Profits = Expenses, ensuring that the owner gets paid first.
[13:43] First principle: Make more for less.
[15:23] Second Principle: Serve sequentially.
[16:41] Third Principle: Remove temptation.
[17:52] Fourth Principle: Enforcing a rhythm and practice consistency.
[19:05] To grow means growing your bottom line, your margins, and the profitability of the company.
[19:54] What matters in the health of a business is what is left over.
[20:57] Casey talks about a company assessment including in Profit First which gives percentages of gross sales, owners compensation, profit, tax, and operating expenses, according to different ranges of incomes.
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