And another really-not-fun statistic:
83% of small businesses actually never make a cash profit.
Let that sink in for a minute.
And yet from the outside, do you feel like your friends and family think "wow, you have your own company. You must be rolling in it."
Does that perception fit you? You look like all kinds of successful and yet, deep down, you know the truth...
If you are in the 12% of small business owners who pay themselves what they are truly worth, yay you!
But if you fall into the camp of the vast majority of small business owners, you likely know that financially you might actually be worse off now than if you stayed in your job in someone else's company.
It was that "entrepreneurial poverty" that led Mike Michalowicz to write "Profit First" in the first place ... and it was that entrepreneurial poverty that led me to implement Profit First in my skincare company. Then seeing how fantastic the results were I became certified as a Profit First Professional so I could help other small business owners implement Profit First in their businesses.
I was on the phone yesterday with a New Zealand small business owner who relies very heavily on international tourism for his business. He reached out to find a Profit First tax accountant in New Zealand. Before we got on the phone I thought we were going to have a conversation about how he is struggling due to such a huge chunk of his revenues disappearing overnight with the closing of New Zealand's borders to visitors. Instead it was such a fun conversation about how he implemented Profit First last year because he had fallen out of love with his company due to financial stress. By implementing Profit First last year, he has gone into this current situation which is so outside of his control, with plenty of buffer in his business to be able to not freak out, to know that he was going to be fine, and to be able to re-look at his business model WITH NO STRESS to pivot.
Let me say that again ... he could look at the changing circumstances of his industry and get creative because of NO STRESS. When we are stressed, the rational, decision-making part of our brain shuts down and we react, instead of respond. If we have the tools though to manage the stress, we are able to make much better decisions.
I loved chatting with him, and am delighted that he was able to implement Profit First in a D-I-Y. And what else is cool is that through our global network of Profit First tax accountants, bookkeepers and coaches, I was able to find the NZ tax accountant who is also certified in Profit First within a few minutes.
So, what about you? Are you ready to implement Profit First in your small business? Maybe you are a D-I-Y type person and just want to get started quickly but need some help with some of the "trickier" steps, like doing your Profit Assessment and figuring out your allocations. If that's you, we now have a D-I-Y option and we can get you started on your own Profit First journey literally by the end of next week.
Check out our D-I-Y offering and let us know if you have any questions.