January 23, 2023

001: The 4 Core Principles of Profit First

11 minutes

Working in the trades business can get too challenging and demanding that it's considered normal to clock in excessive hours. Tradies usually miss out on important events and they pass on the opportunity of spending the holidays with the family.

Despite all these trials of working as a tradie, it’s good to remember that you are not alone. However, it’s also crucial to understand that unless changes are set, there will be no significant transformation in your business.

In this episode, I’ll talk about the 4 core principles of profit first. The Profit First system helps you manage cash simply and efficiently. So, you don’t have to spend lots of hours understanding and managing your finances.

Knowing your numbers takes away the confusion and gives you clarity in making the right decisions toward business profitability.

In this episode of the Profit First For Tradies, you’ll learn:

The impact of using "small plates" or multiple bank accounts (03:10)
The value of serving sequentially (03:50)
How to best handle accumulating money (05:50)
Why you need to enforce a rhythm that works for your business (07:03)

These four principles help implement Profit First in our business and understanding each one provides strategies that allow us to continuously build a permanently profitable business, in both good and hard times.
If you haven’t listened to our previous episode talking about What is Profit First and How Can It Help You, go back and check out Episode 000.
QUOTES
"These four principles make sure that we build a permanently profitable business, in the good times, in bad times, and everything in between." -Katie Crismale-Marshall

"Enforcing a rhythm is one of the key areas to making sure that you can build a permanently profitable business." -Katie Crismale-Marshall

"Nothing will change unless you make some adjustments in your business." -Katie Crismale-Marshall
RESOURCES