Shift to Profit First Mentality
In speaking with brokers across this country and at different stages in their career, I have noticed something and it breaks my heart.
As financial professionals, we’re supposed to have it all together. We guide clients in making smart money decisions, yet many of us feel embarrassed—even ashamed—to admit that our own businesses aren’t as profitable as they should be.
We work long hours, sacrificing ourselves and our families for our business, but somehow, at the end of the month, there’s barely anything left to show for it.
Mike Michalowicz says this in his book, Profit First:
“Your business is supposed to serve you. You are not supposed to serve your business.”
If your business is running commission to commission, it’s not because you’re failing—it’s because the system you’re following is broken. The good news? You can fix it.
3 Steps You Can Take Today to Put Profit First
1. Open a Dedicated Profit Account
This is a simple but game-changing move. Open a separate bank account labeled Profit and transfer just 1% of every dollar you earn into it.
Why? Because:
“When money is available, we spend it. When it is not, we are forced to get creative.”
By removing even a small percentage before paying expenses, you begin shifting the way you manage cash flow.
2. Pay Yourself First (Even If It’s Small)
Traditional business thinking says:
Revenue - Expenses = Profit (Whatever’s left over, if anything!)
Michalowicz flips it:
Revenue - Profit = Expenses
Before paying another bill, before covering another business expense—transfer money to yourself. Start small if needed, but make it a habit. Your business should support you, not the other way around.
3. Trim the Financial Fat
Most businesses have “expense bloat” that eats into profits. Here’s a quick way to check:
- Review last month’s expenses. Highlight anything that isn’t essential.
- Cancel or downgrade subscriptions, software, or services you don’t use often.
- Challenge yourself: Could you run your business with 10% less expense this month?
“When less money is available, we automatically become more innovative and efficient.”
You’re Not Alone—But You Have to Take Action
If you’ve been feeling like you should be doing better financially but don’t know where to start, just take these three steps today. Small, consistent shifts will completely transform the way you run your business.
Hit reply and tell me—what’s one expense you could cut or reduce this week? Let’s get profitable together.
Cheering you on,
