If you'd like to learn about the concept of Profit First and find out how you can really benefit from using it in your Design Business, you will gain a lot from today's Power Talk Friday with Michele Williams, one of the very few certified Profit First Coaches in the United States. LuAnn loves the idea of Profit First and she really wanted to bring it to the Interior Design community after hearing Mike Michalowicz talking about it on The Biz Chicks Podcast. So she asked Michele, who has been interviewed on the show once before, (#137) to come back and explain the concept. Listen in to find out more.
Michele is a truly gifted Business Coach. Before becoming a coach, she worked in the Financial Software Industry and ran a business as a Soft Window Treatment Fabricator. She has a BS in Business Administration and a diploma in Christian Life Coaching as well as her Profit First certification. Listen in now, to find out all you need to know about Profit First.
Today, Michele talks to LuAnn about:
- What Profit First is all about and how it works.
- How Michele initially got going with Profit First.
- Why so many designers really need Profit First for their business.
- Bookkeepers and accountants are amazing, however, they are only going to work with the figures that the business owner gives them.
- How Profit First can help business owners understand how much money they really have available for themselves.
- How Profit First's view of profit differs from that of GAPS.
- That Profit First doesn't change the way you're doing your accounting, it changes the bank accounts that money gets allocated to.
- That Profit First changes the way that you're making your spending decisions.
- Some of the terms that are used by Profit First and what they refer to.
- What is meant by Real Revenue?
- That you have to sell the right product to the right person at the right price and then you need to manage the money.
- That it's not enough to build top line if you're spending all the money.
- Parkinson's Law, human nature and why you take profit first.
- That being honest and clear about your figures is really important.
- The benefit of moving money out to separate bank accounts, for your financial security.
- Your five main accounts- with Profit First.
- That staying consistent is key for this to work.
- Where a lot of business owners tend to get into trouble.
- That Profit First helps you move from cash flow negative to cash flow neutral, to cash flow positive.
- How Profit first can help you out of a hole, if you're in debt and willing to do the work.
- The beauty in Profit First working on percentages, for the natural ebbs and flows of your business.
- An instant assessment that you can do now, for your business.
- Owning your numbers, a bit at a time.
- Pricing for value and not to cover your needs.
Links:
Michele's website: www.scarletthreadconsulting.com
Michele's email: michele@scarletthreadconsulting.com
Michele on Facebook: Scarlet Thread Consulting
Your Coupon Code for 10% off Michele's Passion For Profit online course: WDB10
Resource:
Book: Profit First by Mike Michalowicz is available from Amazon, or other good book stores.