Too many gym owners are eating table scraps.

That is, they wait to pay themselves until all other expenses are covered, and they're left with a pittance—if anything—as profit.

In his book "Profit First," Mike Michalowicz posited a revolutionary cash-flow management system: Business owners pay themselves first, ensuring they make the profit they need to serve another day.

John Briggs, founder of Incite Tax in Sandy, Utah, has adapted Michalowicz's philosophy and program especially for microgym owners. His book, "Profit First for Microgyms," will be available in January 2020, and in this episode of Two-Brain Radio, he and Chris Cooper talk about why microgym owners should take profit first, how to do that and make sure everything else still gets paid and how much to save for taxes.

Links:

Pre-order "Profit First for Microgyms" by John Briggs
Incite Tax

Timeline:

2:08 – Why the profit first concept isn’t greedy.

5:56 – Lessons from toothpaste.

9:38 – Adapting “Profit First” for the microgym industry.

12:17 – The seven essential accounts.

14:24 – How much gym owners should allocate to staff pay.

18:24 – Customizing profit first for each stage of the entrepreneur’s journey. 

22:47 – On the writing process.

24:32 – Removing the temptation account.

28:03 – On taxation and entitlement programs: limiting how the government spends your money.