I love the profit first method. I stared with my accountant about a year ago. The goal numbers are:
20% owner pay
20 % profit
I currently am a little off in the owners pay 16% and profit 17% with the majority going to expensives.
I would like to throw more money into the marketing budget but that’s what I pull out of the profits category at the quarterly allocation mark. And in he beginning it’s okay to put some of the profit back into the company as a reward. But I am on a strict 3 year plan to hit my numbers.
My coach tells me in two years my number will be exactly where I want them to be. So I can pay cash for new truck, Wfps, etc.
Most importantly if I don’t have the funds for something I don’t buy it. As opposed to the beginning where it was if I thought it could help I brought it or signed up for it.
Its going to living lean for a while with my numbers but worth it over the long haul. I am super excited about it.