Benefits of Profit First and six unexpected benefits

Do you want to know if implementing Profit First is really going to help your business? Do you want to know what the real benefits are?

Your accountant and bookkeeper may be reticent and it may seem too time-consuming and confusing, whilst you haven’t got the time to waste on something that’s not going to work.

Many business owners think the same and this is understandable as it can appear like quite a change, but having implemented Profit First myself and seen it work for many businesses, there are some unexpected benefits that make it more than a cashflow system and which make it even more worthwhile.

  1. Defining a narrow goal

Profit First makes you define a concrete, achievable aim and creates a system to achieve the aim. In both defining your aim and having a system that helps you focus on and achieve it, you are much more likely to achieve the aim. Our behaviour and actions follow what we give our attention to. Focus on a goal and what you need to get there and you are more likely to achieve the goal. Profit First helps significantly with this.

  1. Limiting the number of key objectives

Profit first helps narrow your goals to one or two key objectives (eg. paying off a credit card, building a particular surplus amount). When we have fewer objectives, we are better able to focus our attention and actions towards these, rather than diffuse our efforts towards different and possibly incongruent goals.

Furthermore, fewer and more narrow goals will be more likely to be better defined, whereas a range of goals will soon present itself as a vague wish list with little hope of anything being achieved.

  1. Immediate action

Profit First means you start taking action towards your goals immediately and that you continue to take regular and frequent action. Again, you are more likely to reach your goals with regular, systematised actions that are started straight away.

  1. Confronting reality

Profit First helps you confront the reality of your spending and your tax liabilities and how you can reduce your spending. It thus ensures you are fully aware of what you are doing, as opposed to mindlessly wasting money or incurring tax debts without being fully aware of the amount of tax.

  1. Weathering storms

Profit First will help you weather any unexpected storm, because if you have successfully implemented Profit First, you will have reduced your debt or built a cash surplus or both. Lower debt and a surplus will obviously be big advantages in times of unexpected trouble.

  1. Take advantage of unexpected opportunities

Profit First will give you a greater ability to take advantage of unexpected opportunities. Similarly to helping you get through any difficulties, having lower debt and a cash surplus will put you in a strong position so that you can afford to take new opportunities.

So if you are thinking of implementing Profit First, consider these unexpected benefits and the large impact they may have on your financial future and success.

 

Benefits of Profit First

<strong>Other articles</strong>

 

<a href=”https://www.morrisonabs.com.au/calculating-your-profit-percentage-for-profit-first/”><span style=”text-decoration: underline;”>Calculating your profit percentage for Profit First</span></a>

 

<a href=”https://www.morrisonabs.com.au/news/”><span style=”text-decoration: underline;”>Blog articles</span></a>

 

<strong>Refererences and links</strong>

 

<a href=”https://www.profitfirstaustralia.com.au/product/profit-first-book-paperback/”><span style=”text-decoration: underline;”>Profit First book</span></a>

 

<a href=”https://www.profitfirstaustralia.com.au/podcast/”><span style=”text-decoration: underline;”>Profit First podcast</span></a>

 

<span style=”text-decoration: underline;”><a href=”https://www.profitfirstaustralia.com.au/portfolio-item/angus-morrison/”>Profit First – my details</a></span>

Benefits of Profit First