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Cash Flow Mastery: The Profit First Method

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Manage episode 472159790 series 3522901
Content provided by Tina Maddock. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Tina Maddock or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Imagine running your natural products business without the constant financial anxiety that plagues so many entrepreneurs. What if cash flow wasn't a mystery, and paying yourself was non-negotiable instead of an afterthought? That's the promise of Profit First, and our guest Ron Saharyan breaks down exactly how this revolutionary system works.
According to Ron, co-founder of Profit First Professionals, a staggering 83% of small businesses operate check-to-check, with owners often foregoing their own salaries just to keep the lights on. This creates a destructive cycle where entrepreneurs pour everything into their businesses while getting little in return. The Profit First methodology flips traditional financial thinking on its head by changing the formula from "Sales - Expenses = Profit" to "Sales - Profit = Expenses." This simple but profound shift ensures business owners pay themselves first and manage expenses within what remains.
The beauty of the system lies in its simplicity and psychological effectiveness. Using separate bank accounts for different purposes—profit, owner's pay, taxes, and operating expenses—creates clear guardrails that prevent overspending. When revenue comes in, it's immediately allocated according to predetermined percentages, removing the temptation to spend money that should be set aside. Ron recommends starting with just 1% allocations and gradually increasing them, making the system accessible to businesses at any stage.
For natural products businesses facing unique challenges around ingredient quality and educational marketing, Profit First provides the financial clarity needed to stay true to your mission while remaining sustainable. Instead of compromising on quality when margins get tight, you can make strategic decisions about pricing, positioning, and education that protect both your values and your bottom line.
Ready to transform your relationship with your business finances? Start small with just one or two additional bank accounts and experience the immediate relief and empowerment that comes with taking control of your cash flow. Your natural products business—and your personal financial health—will thank you.

Connect with us:

Facebook

Linkedin

Email: [email protected]

About Tina Maddock

Since 2014, Tina has worked with multiple natural products businesses, discovering how to market their CBD products online, without having their payment processor shut them down, to letting customers talk about their health issues those products have helped them solve. She knows first hand how experts like you offer the best products and a superior customer experience, that is why she is committed to helping you find an easy way to grow your natural product business.

  continue reading

Chapters

1. Introduction to Profit First (00:00:00)

2. Profit First Professionals Organization (00:05:25)

3. Starting Small with Profit First Implementation (00:13:35)

4. Common Business Owner Objections (00:23:39)

5. Bank Accounts and Allocation Strategy (00:30:37)

6. The Importance of Financial Clarity (00:38:50)

43 episodes

Artwork
iconShare
 
Manage episode 472159790 series 3522901
Content provided by Tina Maddock. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Tina Maddock or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Imagine running your natural products business without the constant financial anxiety that plagues so many entrepreneurs. What if cash flow wasn't a mystery, and paying yourself was non-negotiable instead of an afterthought? That's the promise of Profit First, and our guest Ron Saharyan breaks down exactly how this revolutionary system works.
According to Ron, co-founder of Profit First Professionals, a staggering 83% of small businesses operate check-to-check, with owners often foregoing their own salaries just to keep the lights on. This creates a destructive cycle where entrepreneurs pour everything into their businesses while getting little in return. The Profit First methodology flips traditional financial thinking on its head by changing the formula from "Sales - Expenses = Profit" to "Sales - Profit = Expenses." This simple but profound shift ensures business owners pay themselves first and manage expenses within what remains.
The beauty of the system lies in its simplicity and psychological effectiveness. Using separate bank accounts for different purposes—profit, owner's pay, taxes, and operating expenses—creates clear guardrails that prevent overspending. When revenue comes in, it's immediately allocated according to predetermined percentages, removing the temptation to spend money that should be set aside. Ron recommends starting with just 1% allocations and gradually increasing them, making the system accessible to businesses at any stage.
For natural products businesses facing unique challenges around ingredient quality and educational marketing, Profit First provides the financial clarity needed to stay true to your mission while remaining sustainable. Instead of compromising on quality when margins get tight, you can make strategic decisions about pricing, positioning, and education that protect both your values and your bottom line.
Ready to transform your relationship with your business finances? Start small with just one or two additional bank accounts and experience the immediate relief and empowerment that comes with taking control of your cash flow. Your natural products business—and your personal financial health—will thank you.

Connect with us:

Facebook

Linkedin

Email: [email protected]

About Tina Maddock

Since 2014, Tina has worked with multiple natural products businesses, discovering how to market their CBD products online, without having their payment processor shut them down, to letting customers talk about their health issues those products have helped them solve. She knows first hand how experts like you offer the best products and a superior customer experience, that is why she is committed to helping you find an easy way to grow your natural product business.

  continue reading

Chapters

1. Introduction to Profit First (00:00:00)

2. Profit First Professionals Organization (00:05:25)

3. Starting Small with Profit First Implementation (00:13:35)

4. Common Business Owner Objections (00:23:39)

5. Bank Accounts and Allocation Strategy (00:30:37)

6. The Importance of Financial Clarity (00:38:50)

43 episodes

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