Use smaller bank accounts like smaller plates to control spending. Prioritize owner pay, profit, and taxes before other expenses, the "eat your veggies first" approach to keeping your business financially healthy.
How do you implement Profit First into your business? The next thing we do is we're going to review the Profit First principles together. These are things like smaller plates, the idea being over time in the US, our plate size has gradually gotten larger, and that is also correlated with the obesity rates in the US. If people just use smaller plates, they'll consume less calories but still feel equally satisfied. We kind of do the same thing with our bank account balances. Instead of having one giant bank account that has all of our money in it, we're going to create Create smaller plates. Another thing when it comes to eating healthy, which also relates to Profit First, eat the healthy stuff first. If you fill yourself up on the veggies, it's less likely that you're going to overeat on carbs or even have the desire to continue eating delicious desserts. In this case, the veggies are things that benefit you as an owner, like making sure you're paying yourself, making sure you're giving yourself a distribution, making sure you're setting aside money for taxes. Those are kind of eating your veggies first.
