Many business owners have bought into a dangerous fantasy—the belief that profit is something to be earned later. Maybe when they hit that revenue milestone, or perhaps when they finally sell the business and walk away with a hefty payday. But here’s the thing: profit is not a distant event. It’s not something that magically appears one day when you decide to cash in. Profit is a habit, and if you’re not building it into your business from day one, you might never see it at all.
The Illusion of Future Profit
The “profit later” mindset is seductive. It’s easy to get swept up in the day-to-day grind, constantly reinvesting in the business, telling yourself that you’re building something bigger, something better. You’re chasing revenue, adding employees, expanding services—convinced that all of this will one day translate into profit. But here’s the harsh reality: if your business isn’t profitable now, it’s unlikely to be profitable later.
Why? Because profit isn’t something that happens by accident. It’s not a side effect of growth. It’s a deliberate choice, a practice that needs to be built into the very fabric of your business from the very first dollar that comes in.
Where Is Your Profit?
So, if every dollar that enters your business is supposed to be profitable, then where is that profit? It’s easy to lose track of it. It gets swallowed up by the countless demands of running a business—payroll, inventory, marketing, rent, taxes. Before you know it, there’s nothing left over. You’re working hard, your business is growing, but somehow, profit remains elusive.
This is where so many business owners go wrong. They accidentally spend their profit, thinking that it will magically reappear down the road. But trust me, most business owners never see that day. They keep chasing growth, believing that one day, the profit will catch up. It doesn’t.
Building the Profit Habit
The key to avoiding this trap is simple: you have to build the habit of taking your profit first. And that’s where the Profit First system comes in. Profit First isn’t just a catchy slogan; it’s a powerful system that forces you to prioritize profit with every dollar that comes into your business.
Here’s how it works: instead of hoping for profit at the end of the year, you take your profit off the top, right from the start. The money is set aside before anything else—before expenses, before investments, before taxes. This way, you ensure that your business is always profitable, no matter what.
Starting with Profit First is like going to the gym for the first time. You don’t load up the bar with all the weights and expect to bench press 300 pounds. You start with the empty bar, practicing your form, and slowly, steadily, you start adding weight as you get stronger. Profit First works the same way.
Start Small, Build Strong
You start with where you are—maybe it’s just 1% or 2% of your revenue. You don’t need to hit it out of the park on day one. The goal is to build the habit, to get used to setting aside profit every single time money comes in. Then, as you get more comfortable, as you start to see the results, you can gradually increase the percentage. Every few months, you add a little more to your profit account, while simultaneously making improvements in efficiency and cutting wasteful spending.
Over time, this habit becomes second nature. You’ll find yourself making decisions with profit in mind—because you’ve trained yourself to prioritize it. And as a result, your business becomes more valuable. When it’s time to sell, or if you need to borrow money, you’re going to get a lot more—that’s a double profit payout.
The Power of Profit Reserves
But the benefits of Profit First don’t stop there. By consistently building up your profit account, you’re also creating a safety net. Life in business is unpredictable—there will be good times and bad times. The businesses that survive the rough patches are the ones with reserves. Profit First ensures that you always have something set aside, so when times get tough, you’re not scrambling. You have the resources to survive, and not just survive, but thrive through the struggle.
In the end, Profit First is more than just a financial strategy—it’s a mindset shift. It’s about taking control of your business’s financial future, rather than hoping it will all work out in the end. It’s about making sure that every dollar you earn is truly profitable, and that your hard work today will pay off tomorrow.
So stop chasing the fantasy of future profit and start building the habit of profit today. Because in business, like in life, the habits you build today determine the success you enjoy tomorrow.