In this episode, we dive into the transformative journey of implementing the Profit First system. This system, renowned for its simplicity and effectiveness, has significantly altered their business landscape, fostering financial stability and growth. As Jason and Chris tell their Entrepreneur stories, they share practical insights and the impact of financial discipline and strategic planning in navigating the complexities of entrepreneurship.
THREE BIG IDEAS FROM THE INTERVIEW:
- Profit First as a Game-Changer: Jason shares his transformative experience with the Profit First system, highlighting its role in overcoming financial turbulence. His story underscores the system's simplicity and actionable steps, which dramatically improved his business's financial health.
- Entrepreneurial Journey and Growth: Chris's narrative as a serial entrepreneur provides a rich backdrop to the discussion. His transition from a Motorola salesman to a successful entrepreneur and the role of strategic frameworks like EOS in business growth offer valuable lessons on innovation, resilience, and the importance of adaptable systems in entrepreneurship.
- Strategic Financial Management: The conversation emphasizes the critical role of financial management in business sustainability. Through their implementation of the Profit First system, both speakers illustrate how disciplined financial planning and understanding cash flow are essential for navigating business challenges and ensuring long-term success.
ABOUT CHRIS:
Chris is a 7X entrepreneur with over 15 years as a business coach. He co-founded Ninety.io, software for companies running on EOS, Ascend POS for Trek Bicycle Company, System & Soul business framework, and S2 Sync software.
ABOUT JASON:
Jason is a Certified Profit First Professional, Founder/Owner of Up-Rev (tech company), and Managing Partner of uGreenit (Profit First Professional coaching).
REST OF SHOW NOTES:
Jason and Chris are entrepreneurs who share their journeys and how they integrated the Profit First system into their businesses. Their experiences, filled with valuable lessons from their time in the business world, pave the way for a discussion on financial strategies capable of transforming businesses.
Jason's Transformation
Jason's transition from engineer to business owner showcases the myriad challenges entrepreneurs often face, including unpredictable cash flows and the difficulties of managing growth. Discovering the Profit First system was a pivotal moment for him, providing a straightforward yet revolutionary method for managing finances. By applying this system, Jason not only stabilized his business finances but also gained new insights into financial management, particularly the significance of prioritizing profit allocation over expenses.
Chris's Strategic Approach
Chris, with a background in launching successful ventures, offers a complementary view. His journey emphasizes the importance of strategic frameworks in achieving business success. Through his exploration of the EOS system and the development of related tools, Chris demonstrates the effectiveness of streamlining business processes. His collaboration with Jason to implement the Profit First system highlights the powerful combination of operational and financial strategies.
Deep Dive into Profit First
Understanding the System
The hosts and their guests delve into the Profit First system's intricacies, exploring its principles and how to implement them. The system's methodology of setting up separate accounts for profits, taxes, and operating expenses introduces a disciplined financial management approach. This setup compels businesses to adjust their expenditures based on actual income, promoting a more sustainable financial strategy.
Psychological Shift in Prioritizing Profit
A critical insight from the episode is the psychological transformation entrepreneurs undergo when they prioritize profit. The Profit First method encourages business owners to critically assess every expense and seek ways to enhance profitability. The discussion covers the initial hurdles of adapting to the system, including the challenge of resisting the urge to tap into designated funds during financial shortfalls, and the need for discipline in adhering to the system's guidelines.
The Broader Impact of Profit First
Strategic Financial Management
Adopting a structured financial system like Profit First has far-reaching implications. It extends beyond merely stabilizing a company's finances; it fosters a deeper understanding of the business's core economic activities, leading to more informed decision-making. Such strategic insight is essential for guiding growth, navigating downturns, and ensuring sustainability.
Operational Excellence and Financial Discipline
Jason and Chris highlight the transformative impact of merging operational excellence with disciplined financial management. Their narratives illustrate that business success transcends having outstanding products or services—it's equally about prudent resource management. Profit First emerges as a vital tool not just for weathering financial storms but for achieving enduring prosperity.
Reflections and Future Perspectives
Evolving Financial Management for Small Businesses
The episode concludes with reflections on the future of financial management for small enterprises and the potential of methodologies like Profit First to democratize financial success. The dialogue underlines the critical role of financial literacy and strategic planning in the entrepreneurial voyage, providing listeners with practical insights and motivation.
FINAL THOUGHTS:
This podcast episode offers an exhaustive exploration of the Profit First system, viewed through the experiences of two entrepreneurs who have effectively applied its principles. Their stories validate the system's capacity to revolutionize businesses, serving as a guide for those aiming for financial stability and growth.
RESOURCES:
Profit Pro
PODCAST INTERVIEW QUOTES:
13:47 - “I think you do get caught up in that vanity of a nice space, more people, bigger, you know, everything and, you know, deep down, you're just, you know, it's like a duck, right? Your feet are moving a million miles an hour but you try to be cool and calm at the surface.” - Jason
15:55 - “You do the best work in the worst times and the worst work in the best times because if everything on the income statements going up You don't have to look at your cash flow.” - Ryan
18:11 - “The genius behind what Gino did, right, is, is, you know, he, he, he took scaling up and evolved it, right? And he kept it simple.” - Chris
26:47 - “The beauty of the system is you're gonna make incremental changes over time.” - Jason
39:30 - “We just want to make it fun and easy to do business with Profit Pro and, to Jason's point, the Profit Pro methodology is simple, practical, and it works.” - Chris
INTENTIONAL GROWTH™ RESOURCES:
- Intentional Growth™ Podcast Archives: Archive of 367+ episodes and counting. Get access to the entire library HERE. We'll be adding a searchable tagging feature later on this year.
- IG Financial Scorecard: Get your Intentional Growth™ Score that grades you on how well you are viewing - and running your business like a financial asset. Get your results and 5 case study videos HERE.
Intentional Growth™ Academy: 71 Videos, 9.5 hours of content, 20+ exercises. $995 for subscribers [normally $1,495] HERE
