May and June are graduation months which means new beginnings for the graduates. One of my sons will be graduating end of this month as well which means he will be heading to college in the Fall. We all know that college tuition fees are expensive that’s why most college students end up with tons of debt in student loans. Even if they find a job right after college, it could still take them 10, 20, 30 or more years to pay off that debt. I can’t afford to put my son through that painful situation. So, we decided earlier on that no matter what happen, our son will not have any student loan upon graduation. We put in place a plan that will reach that goal. God willing, he will graduate debt free in four years.
How does apply to your businesses? What plan do you have for your business financially? If you fail to plan, that means you plan to fail. It is not uncommon that businesses carry some sort of debt because that seems to be the normal way of growing a business. At the same time, those normal businesses are the struggling with cash flows; no money to pay taxes; no money run payroll, can’t afford to pay themselves and so forth which is why over 80% of small businesses are struggling.
Profit First methodology teaches to put in place a plan that will ensure all of the above categories are cared for. When they are carried out as plan, everybody wins. It is not your typical budgeting and forecasting. It works with our behavior as humans.
So, how do you plan for your business? Interested in learning more about Profit First? Contact us!