In business, “Profit First.” is a powerful concept about how we handle money. Instead of waiting until the end to pay yourself, why not pay yourself first? It’s a revolutionary idea that challenges the traditional mindset. By prioritising your own profit, you become more motivated, focused, and driven to make your business thrive. So, why not dare to put yourself first and watch your success soar? Profit is what we all desire, yet we often overlook its importance.
In this episode, our special guest Najma Khan enlightens us on the cash flow management system known as Profit First. If you haven’t come across it before, Profit First is a system derived from Mike Michalowicz’s book of the same name. It suggests dividing your business finances into different accounts and allocating sales, income, and invoices across these accounts based on specific percentages. Emma, our host, has been gradually implementing this system for the past six months and is already witnessing a significant shift in her approach to cash flow management.
This episode will reignite your confidence and empower you to master the art of managing your business finances. Get ready to take control!
- [00:01] Episode intro, what’s in for you today & quick bio of the guest; Najma Khan
- [03:33] A bit about Najma Khan and the value she brings to the world
- [07:49] It’s not late to start your business’ financial management journey
- [09:04] The concept of Profit First, and why you MUST pay yourself first
- [10:41] Accounts you must have for your business to thrive and scale up
- [11:40] Common problems to encounter when implementing the profit-first concept
- [14:21 When profit first becomes magic, and a game changer
- [17:50] Why money is attracted to clarity and organisation
- [20:20] Best practices with your profit account
- [26:27] Why money is just a mindset
- [31:38] Profit first among solopreneurs versus companies
- [33:38] Core principles of Najma’s program and how she helps clients
- [42:50] Golden takeaway nuggets from the episode
- [45:22] Best ways to reach out, connect and get Najma’s services
- [48:01] Call to action and ending the show
“There is no shame in not being super confident in managing business finances. Sincerely, it is complicated, hard, different and uncertain.”- Emma [01:56]
“There is nothing like being late in business. Every time is perfect to start your entrepreneurship journey. It is all about making a decision and sticking to it.”- Najma [07:49]
“Sales minus expenses equals is outdated and does more harm to you as an entrepreneur. Successful businesses embrace sales minus profit equals expenses. They pay themselves first, and that is the secret. ’-Najma [09:38]
“When we get clarity in our business, we gain confidence. Confidence is what helps us know how to effectively run our businesses and make better decisions.” – Najma [18:21]
“When you reward yourself as a business owner from the profit account, it is like your business rewarding you for a job well done. In return, your attitude towards the business even becomes more remarkable, and you work with joy. ”-Najma [23:22]
“Every money battle is started and won in the mind. It is just a mindset. When the mindset changes, everything changes. ”-Najma [26:27]
A free beginner’s guide to Profit First that you can download here.
Melanie Jane Wood: https://speakingstyles.com.au/
Hosted by Financial Behaviour Expert, Emma Edwards, Broke Business will leave you feeling seen and heard when it comes to business and money, and give you practical and emotional advice on how to feel more financially confident in your business.
Find Emma on Instagram at @the.brokegeneration.
Thanks to our Season Sponsor H&R Block.
As Australia’s leading tax experts, the team are here to help, offering on-going support for individuals and small businesses, and FREE BAS service
See omnystudio.com/listener for privacy information.
Sign up to The Glue: my weekly feel good finance newsletter www.thebrokegeneration.com/subscribe, where you’ll also nab access to my free Financial Values Workbook.
Disclaimer: Information contained in this podcast is general in nature and should not be considered financial advice, nor used to make a financial or investment decision. Please seek professional advice for information tailored to your own circumstances.