Being in business is not for the faint-hearted, and managing cash flow is a major concern for most Australian small business owners. According to recent data released by Commbank nearly 80% of small to medium businesses have experienced a lack of cashflow in the past 12 months. We know that achieving profitability can feel like a constant struggle for many business owners.
Whether you are running a small startup or managing an established business, the pressure to balance revenue with expenses is always on our mind. That’s where Mike Michalowicz’s Profit First system comes in, a simple yet effective method to ensure that your business is not just surviving but thriving.
Simply reading the book and understanding the Profit First methodology isn’t enough. To maximise its potential, it’s vital to work with a certified Profit First Professional (PFP). Here’s why:
Expert Guidance to Implement Profit First Effectively
The Profit First system is based on a clear but structured methodology that involves allocating a percentage of your income to different accounts before you pay for anything else (profit, taxes, owner’s pay, etc.). While the concept is straightforward, putting it into practice requires careful planning and consistent execution, as well as understanding and implementing the system according to local business regulations.
A certified PFP has been trained specifically in all the intricacies of the Profit First system, and how they relate to the Australian and New Zealand market specifically. They can tailor the strategy to your unique business needs, helping you set up the right allocations and make any necessary adjustments as your business evolves. Without the proper guidance, it’s easy to misstep, miss key steps, or fail to implement the system correctly.
Certification and Recertification
To become a Certified Profit First Professional, a new member has to complete an in-depth online training, submit for assessment two client profit first implementations and pass an exam. They are also encouraged to attend our weekly member support sessions to further their learning. They are then required to recertify every year, ensuring they are still meeting the high standards required for Certified Profit First Professionals, ensuring they are aware of any updates or changes in the Profit First methodology.
This is to ensure that all clients are receiving consistent and accurate information from our Certified PFPs.
Our Certified PFPs are based in Australia and New Zealand. Having a local as part of your expert team means they have an understanding of the local tax and compliance requirements, ensuring you are receiving accurate advice for your local business. Profit First Australia and New Zealand publish a members’ directory to help you choose a Certified Profit First Professional for your Australian and New Zealand businesses.
Accountability and Financial Discipline
One of the biggest challenges many entrepreneurs face is sticking to financial goals. The demands of running a business often lead to “urgency bias,” where business owners prioritise immediate needs (like paying bills or wages) over long-term goals (like building profitability).
A certified PFP holds you accountable. It’s not set and forget. They check in with you regularly, ensuring that you stay on track and follow the Profit First system, making any adjustments along the way to meet the changing needs of your business. This accountability helps build the financial discipline necessary to ensure that profit comes first, not last.
Avoiding Common Mistakes
The Profit First system has its challenges, especially for businesses that have been using traditional accounting methods for years. Without proper guidance, it’s easy to make mistakes that can hurt your business and your mindset in the long run.
A certified Profit First Professional has the expertise to help you avoid these pitfalls. From setting up your bank accounts correctly to ensuring that you’re allocating the right percentages for each category, a certified PFP ensures that the system works as it should, minimising risk and maximising profitability.
Tailored Financial Strategy for Your Business
Every business is unique. Whether you’re a service-based business, a tradie, a product retailer, or a startup with fluctuating income, the way you implement Profit First will differ. A certified PFP doesn’t offer a one-size-fits-all solution – they’ll take the time to understand your specific situation and create a personalised plan.
For example, a certified PFP might help you adjust your percentages based on seasonal cash flow or work with you to create a plan for scaling your business while still ensuring that profits remain a priority. This individual approach gives your business the flexibility it needs to grow sustainably.
Peace of Mind
At the end of the day, working with a certified Profit First Professional offers peace of mind. You can rest assured knowing that you have an expert in your corner who understands the intricacies of business finance. With a certified PFPs guidance, you can focus on what you do best, ‘running your business,’ while they handle the financial strategy that drives long-term success.
If you’re committed to building a profitable business that can weather the ups and downs of being a business owner, then working with a certified Profit First Professional is a game-changer. Their expertise, individual guidance, and ongoing support can help you maximise profits, avoid costly mistakes, and build a financially fit business that grows sustainably.
Profit First isn’t just a system – it’s a mindset shift. And with the right expert guiding you along the way, it can be the key to turning your business into a profitable, thriving venture for years to come.
