You may have wondered why exactly taking your Profit Last would be a problem. Taking your Profit Last means this: You produce & collect money – then, you pay all the bills (including your team & you), then, you set aside the company profit for distribution to you at a later date.
The problem with this is you never set aside the company profit because it’s never there or you are nervous about taking it out of the bank account because you might need it to pay more bills. The point here is you never do it.
Here’s the equation you are operating with: Sales – Expenses = Profit
Let’s flip that equation. Sales – Profit = Expenses
A little bit of magic happens now. It’s been proven over and over what you put first gets done.
Think about it. Things at the top of the list get done. It’s the law of primacy. That which comes first gets more emphasis. When you set aside your company Profit First, you are saying “Profit is important to me.” It’s more important than some other things you might choose to spend your money on.
It’s the wake-up call to analyze what is really going on in your business and where you are spending your money. By simply making the decision to change the equation, you now see your finances in a new way.The first step is to decide what you want. When you decide to do something and stick to it, you’ll do everything in your power to make it happen. If you are stuck with indecision, you will grasp at multiple things that may look like solutions, but you never completely follow through with any of them. And all those ‘things’ probably have a cost to them, either in time or money.
My challenge to you is to make the informed and educated decision and then stick to it and follow the plan. Of course, I believe Profit First for Dentists is the best option if you are looking for a solid system to increase profitability.