Foreword By Mike Michalowicz 1
Introduction 5
‘I’m not sure my business will make it’ 5
Shocked but not surprised 6
She’ll be right 8
The missing piece 9
How do you get the most out of this book? 11
PART I: PROFIT
1. The core principles of Profit First 15
Understanding cash flow 17
So how do we enforce a rhythm? 18
The four core principles of Profit First 19
But if I set aside my profits, how will I grow? 25
The new accounting formula 26
2. Setting up your Profit First bank accounts 29
Setting up your accounts 29
Why the additional accounts? 33
Two ‘no-temptation’ accounts 33
3. Your allocated percentages 37
Real revenue 37
1. Instant assessment 38
2. Preparing for Profit First 39
3. The profit assessment 40
Two common problems 42
Current allocated percentages 44
Target allocated percentages 45
4. Finding funds in your business 51
Uncover the money that is already in your business 51
Understand and reduce debt 55
Review expenses 56
5. Eight common mistakes to avoid 59
Mistake #1: Going it alone 60
Mistake #2: Too much too soon 60
Mistake #3: Grow first (and profit later) 60
Mistake #4: Cutting the wrong costs 62
Mistake #5: ‘Plowing back’ and ‘reinvesting’ 63
Mistake #6: Raiding the tax account 64
Mistake #7: Adding complexity 66
Mistake #8: Skipping the bank accounts 67
PART II: PLAN
6. Setting goals 71
You’re not alone 71
Setting your goals 74
Keeping it simple 78
7. Assessing where you are now 83
Getting on track 83
How much do you need to live on? 86
8. Building your financial team 93
The players 93
You’re the boss 96
PART III: PREPARE
9. Getting the numbers right 101
Getting the foundations right 101
Your financial documentation 102
Bookkeeping basics 103
The benefits of automation 111
Quick and efficient quoting 113
Quick and efficient invoicing 117
‘Bloody bills’ 122
10. Getting the business management right 125
Managing your purchasing 125
Staffing and subbie success 127
Digital solutions 131
PART IV: PROSPER
11. Protect and plan 135
Protecting you and your family 135
Planning 138
12. Getting started with Profit First checklist 143
Where to from here? 147
Glossary of key terms 149