Profit First Method

A cash management system by Mike Michalowicz where you allocate a percentage of every revenue deposit to profit first, before paying any expenses.

Most businesses treat profit as what is left after expenses, which means profit never comes. Profit First reverses this: profit is taken first, forcing the business to operate within what remains.

Every payment received: allocate 5% to Profit account, 15% to Tax account, 30% to Owner's Pay, 50% to Operating Expenses. Whatever remains in Operating is your budget. No overspending.