Behind the Curtain, Part 2, Profits and How to Utilize Them

Yay!  You’re back for Part 2!  That warms my heart!  By now you know the first part of my entrepreneurial journey - how I accidentally fell into this and how I changed my way of thinking to make sure I was financially successful with it.  So you might be wondering what I did that was so groundbreaking.  I’ll make it short and sweet…

PLANNING FOR PROFIT!

I planned for profit.  That’s it!  I looked at my incoming budgeted revenue each month and before I even thought about spending on anything, I carved out what I wanted to hold onto for cash reserves.  Easy peasy right?  

Let’s say you have $15k a month coming in. You want to hold onto $5k.  That means you have $10k to spend on everything else - that includes rent, payroll, marketing, office supplies, etc.  But by putting PROFIT first in the formula, it’s not an afterthought.  It’s front and center where it belongs. 

GOT IT, NOW WHAT?

Now what to do with that?  Well, COVID taught us all the importance of cash reserves for “rainy days” and ugh - economic downturns!  But what if you are already comfortable with that?  What else can you use it for? 

• Outsource those pesky tasks

  • Consider bringing on a virtual assistant or social media manager to take on those tasks you know need to be done but you don’t have the time for

  • Hire an editor for your podcast

• Bring on more advanced resources such as an outsourced CFO, CMO or CTO

  • You don’t have to know how to do it all and if you’re now in a place where you can bring someone in, that will only free you up to do more of what you loved about getting into your business!

• Offer benefits to your employees or expand what you have

  • Health benefit package

  • Education, training, classes or seminars

  • Wellness reimbursements

• New Hires

  • Need that new employee but not sure if they will result in more business?  Use some of that reserve to fund the salary for 3 months

• Pay down debt

  • Did you take on additional debt as you were growing?  Sure you could continue to make payments but having your accountant do a calculation of what you could save if you paid it down now would be well worth it.

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