MAP IT Marketing
Why You’ve Got to Have a Profit First Business
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Episode notes
So often as business owners we fall into the trap of growing our business, focussed on the turnover and external signs of success, and forget the biggie: Profit.
This was certainly true for today’s guest Jennifer McKinley whose company Cor Silver Skincare was being picked up by international markets, considered a huge success and at the same time, causing Jennifer regular financial stress. Everyone was getting paid except her.
Even though Jennifer loved numbers and accounting (She was a professor's assistant in accounting at Yale when I was getting my MBA there), she still made many of the same entrepreneurial mistakes in terms of managing the cash flow of the business. She was chasing revenue instead of profitability. Now she lives by the quote: “At the end of the day revenue is vanity; profitability is sanity”
With the same tenacity Jennifer had applied to building her business, she learned about Profit First, a system created by Mike Michalowicz for business owners needing to get the profit back into their business.
The results were seriously good, and Jennifer decided she’d like to share her knowledge with other small business owners struggling to grow a business while remaining profitable. She is New Zealand’s only Certified Profit First Professional, and helps her clients apply the Profit First model to their business.
We’re also avid Profit First users, and recommend it to our clients. Like us, they’ve seen dramatic changes in their businesses, from solopreneurs to businesses with teams of 50+ staff. If you know you need to make more profit in the next twelve months, and want to get a handle on it, this podcast episode is for you.
Today we cover
- .Why Jennifer became a Profit First Professional
- What the impact on her own business was
- What focussing on profit can do for the whole business
- Why this system can help you prepare for big purchases
- Why you need a “Government’s Money account
- Why a long holiday can be a sign of health
- What other accounts you need, depending on your type of business
- How to apply this process to your own business
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