It’s here! This is my FAVORITE part of the quarter!
If you’ve been implementing Profit First, it’s time to celebrate the hard work you’ve put into your business the last 3 months.
So how does this work? Do you get all the money?
The answer depends on the amount of debt your business carries.
If You, or Your Business Has Debt
I encourage business owners to maintain a debt-free lifestyle, both in their business and personal lives. The beauty of Profit First is it can help you reach that goal of debt freedom.
So what should you do with the money in your profit account? I suggest you take 98% of it and throw it at your debt! Do you feel that? It’s the feeling of your success punching your debt in the face.
It’s important to keep your businesses cash flow for present expenses and future growth. Debt ties you down to past purchases and prevents momentum. Who needs that?
Now take that remaining 2% and celebrate. It’s important to enjoy the fruits of our labor, even if it’s a small portion. Only have enough to buy a Big Mac? It’ll be the best Big Mac you’ve ever had.
If You're Debt-Free
No debt? I recommend taking 50% of what’s in your profit account and use it to celebrate! Purchase that high ticket item you’ve had your eye on, go out to a fancy dinner or schedule that weekend away.
The most important thing is to enjoy this money! Don’t reinvest it into the business.
What about the other 50%? This goes into your retained earnings (or Vault) account. It’s always a good idea to have money set aside for a rainy day in the business.
I’d LOVE to hear what you’re using your money for this quarter. Drop it in the comments below!
Feeling left out of the profit party? Click here to schedule a free call. We’ll get you set up so you’ll be taking home a big fat distribution next quarter!
Craig is a Certified Profit First Professional in Austin, TX who is passionate about helping service based businesses all over the U.S. become permanently profitable.