What should I do with the money already in my business when I start using Profit First?

Dave WordenTriumph Business Solutions · Founder

Ask Mike- What To Do With Current Money In The Business with 'Profit First'

2 Jan 2020 · 1 min

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0:45

Mike Michalowicz explains how to handle cash already in your business when starting Profit First. Keep existing money in its current accounts or move it to OPEX. From the day you implement Profit First, every new deposit follows the system's allocation sequence: profit, owner's pay, taxes, and operating expenses.

Questions this video answers

Let the existing cash continue to be used as you have been, or move it to your OPEX account for safekeeping. From the implementation point forward, apply the Profit First allocation percentages to every new deposit.

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Welcome to Ask Mike. I am Mike Michalowicz, the author of Profit first and the Pumpkin Plan. This question came in from Ryan Moore, who has read both books. He started off the Pumpkin Plan, scaled his business. Now he's looking to implement Profit First. But he's got a challenge. He has money in the business right now. What do you do with your existing money? Ryan asks. It's real simple. Just let it play out in your business how you've always been using it. You can simply move it to your OPEX account if you wish and just store it there. But every deposit going forward you do find. The Profit first system goes into income. Then it gets allocated out any money you had prior to implementing Profit First. Just play it out as you were before. That's it.