On October 14th we held our Facebook Live panel discussion with Laura Elkaslassy, Najma Khan, Katie Marshall and Michelle Tolhurst. During this live Q&A, our panel answered a variety of questions that had been streaming in from business owners, and also individuals interested in becoming Profit First Professionals.
Watch the video
“Profit First is flexible, it’s an adaptable system, and is dependent on each business and it’s circumstances.” – Najma Khan
Thank you to all of you for sending in your questions and we hope that you found the answers helpful. Here are some of the questions that we received:
My business is very up and down with variable income, leaving both an excess and shortfall in living costs. Any tips for applying Profit First in these circumstances?
A separate account (sometimes known as a vault account) can be helpful in situations where you have variable income. In this instance your income, expenses etc are looked at over a yearly period and all of these fluctuations are calculated and accounted for. We then hold extra money in this separate vault account to use during times when it is needed. The vault account should ideally hold 3-6 month’s worth of income.
I have an overdraft. Will Profit First work in my business?
You will always find a reason to spend from that overdraft and as long as you’re still doing that, you’re never going to progress as far as you need.
If after someone has done the profit assessment they have a very high percentage for expenses, what can they do about that?
This is another “not fun” part of the process initially, but really rewarding once you take the time to work through those expenses. The first step is to set aside some time to check that everything that is going out is actually a necessary expense in the running of your business.
If you have any further questions please feel free to email them to firstname.lastname@example.org