A System That Works

Close-up of economist using calculator while going through bills and taxes in the office.

As a 10-year-old in the 1970s, my husband built television sets from used parts. He taught himself how to do this by taking apart dozens of TVs and analyzing how the pieces fit together to create a functional whole. He rarely watched.  Instead, he derived his enjoyment from the satisfaction of solving the problem. To this day, he can figure out how to fix almost any mechanical system, and I am in complete awe of this skill. I would much rather relax and watch TV than figure out how to fix one.

This is pretty much my MO regarding all systems. I love using systems to maximize time and minimize effort, but have little desire to create them. As an entrepreneur and small business owner, I constantly look for fresh, easy ways to manage the details of my business, so that I have more time to do what I really love: coach people on how to transition from a successful career into building a legacy.

During the quarantine of 2020, I have had time to consider the systems I use to run my business, and how to use them to maximum efficiency. The benefits are many, ranging from predictability of outcome to ease of implementation to minimizing the amount of energy required. When they run smoothly, they flow smoothly, like your circulatory system. You don’t have to think about it in order for it to work.

I am particularly grateful for a financial management system I adopted in January of this year, before I was aware that COVID-19 was about to change everything.  It helped me manage my business to profitability.  It lets me know in an instant that I have cash on hand to pay for a certification that will get me more business, and that I have money in the bank to cover my costs through the summer. With all the uncertainty in our world, this is a major source of comfort.

Profit First is a system for entrepreneurs and small businesses to manage business finance. What makes it so different is that it is based on principles of human behavior, rather than accounting, and it reverses the traditional profit formula to guarantee that you will always make a profit (provided, of course, that you have sales. No sales = no profit).  I picked up Profit First by Mike Michalowicz because I am attracted to the innovative and different, and realized at once that this ingenious system was a game changer for me and would also help my clients.

I got a certified Profit First professional to help me, and I have my accountant to prepare and file my taxes. But now I have an easy way to gauge the health of my business just by looking at my bank accounts on my phone. It’s really simple. It’s ingenious. Having it in place allows me to relax, knowing that it is there to protect my business.

If you are an entrepreneur or a small business owner, you should check out Profit First. You will thank me for it when you have time to binge watch your favorite show. I promise!

 

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