Having been in business for over 10 years this business owner has well and truly been through the peaks and troughs of business in every aspect.
Including growing and engaging staff, moving business locations multiple times, declining sales and increasing wages, some not so great client relationships which had led to substantial bad debt.
This business owner was struggling to find any enjoyment in business anymore and also struggling to pay themselves a decent weekly wage for the massive amount of time and energy they were putting into the business. The credit card debt and ATO payment plan felt overwhelming and they were desperate to find a better solution.
It all just felt too much and the option of ceasing the business altogether and going back into employment and enjoying the perks of having annual leave and higher income was looking very attractive.
Having completed the Profit First Assessment it was clear improvements could be actioned quickly.
6 months after implementing Profit First, the business owner has:
completely paid off all debt,
has enough money to pay every bill, staff wages, superannuation obligations on time.
put aside 1 month of savings for a rainy day fund and will continue growing this to be 3 months of savings.
Has paid themselves their first Profit Distribution in over 10 years
Is paying themselves a regular wage which is increasing to their goal income
Has celebrated after finding out they have a tax amount to pay this financial year and they have money already there to pay it
Is putting money aside for all annual expenses so there will be no surprise bills
Now has a budget and money goal for specific areas they wish to grow and undertake in their business.
Is able to pay for large purchases up front without the need for payment plans or uncertainty if they can actually afford it.
The feedback was “I wish I had known about Profit First before starting my business. I can see that it would have saved me from many poor “under pressure” decisions that I made due to uncertainty around my finances and lack of cash flow.
That being said I have truly learnt from all that I have been through in my business journey and I will never be in that situation again. I am truly creating a life and business that I love and creating my own financial freedom.