Profit First Core Principles
1. Profit is a Habit, Not an Event
Don’t wait until “someday” to be profitable. Build it in from Day One—automatically.
2. Pay Yourself First—Always
Owner’s pay is not an afterthought. It’s a non-negotiable—you work hard, you get paid.
3. Bank Balance Accounting—Simplified Visibility
Entrepreneurs run their businesses by what’s in the bank. Profit First embraces that instinct—by splitting money into separate accounts for clarity.
4. Allocate, Don’t Accumulate
Instead of keeping all revenue in one lump sum, allocate percentages to:
- Profit
- Owner’s Pay
- Taxes
- Operating Expenses
5. Constraints Spark Creativity
By giving your business less to spend (intentionally), it forces smarter, leaner decisions.
6. Real Revenue vs. Total Revenue
Only spend based on what’s left after subtracting pass-through expenses or cost of goods—not gross revenue.
7. Don’t Steal from Tomorrow to Pay for Today
Borrowing from taxes or profit accounts creates a cycle of cash stress. Let the system build your safety net.
8. Set Your “Tap” to a Rhythm
Money moves on a set rhythm (usually bi-weekly or monthly). No more random decisions—build financial discipline and predictability.
9. Build a Vault Mentality
Profit isn’t play money—it’s protection, peace of mind, and future growth fuel.
10. Growth Follows Stewardship
Real growth happens when money is managed intentionally—not emotionally. Stewardship over your funds multiplies your business impact.