In this short tip video, the speaker explains how the Profit First cash‑flow system can be used by micro‑gyms to create a disciplined, twice‑monthly bill‑paying routine. He contrasts the chaotic pre‑Profit First approach—paying bills as they arrive and often forgetting them—with a structured method that ties bill payment to the gym’s regular allocation (or rhythm) days, typically the 10th and 25th of each month. On these days the owner moves money from the income account into purpose‑specific accounts (tax, owner’s pay, profit distribution, equipment, operating expenses) and then reviews all invoices received since the last allocation, paying them all at once. This eliminates ad‑hoc bill handling, frees mental energy, and ensures consistent cash‑flow management. The video ends with a call to share, subscribe, and a note that more detailed Profit First resources are available.
Chapters
Hey, in this tip I wanted to talk briefly about paying your bills. In Profit First for Microgyms, we talk about the Profit First system, which is a cash flow management system to help any gym become profitable from their very next deposit. Now, sometimes we get asked, well, we're focusing a lot on the cash flow and putting money into separate bank accounts that have separate purposes. If you need more information on that, we have other tips Other quick tip videos or read the book. It's a great read. I think so. I'm biased though. But they often ask like, well, how do I pay bills? Look, before Profit First, I managed bills probably like most other business owners, which was if I got it in the mail, I looked at it and I tried to pay it that same day. Or if I looked at it, tried to pay it that same day, but then a fire happened at the workplace and I needed to take care of that. I forgot about it. And then it sat on my desk. And then it gets covered up with the other fires and other mail. And then eventually I find the bill a couple months later, or the vendor's emailing me that there's a late payment. I'm like, oh crap, I didn't mean to not pay that. I just forgot. Effectively, what I'm saying is I did not have a system for paying my bills. Prop First gives us this system. It's super cool. On your allocation days, your rhythm days, when you sit down— I use the example of on the 10th and the 25th. You can pick whatever days you want, just as long as they're about 15 days apart. When I sit down on those days, yes, I'm taking money from my income account and I'm putting it in To my tax account and my owner's pay account and my profit distribution account, my equip— my future equipment needs account, those types of things. But I'm also then, when I look at my operating expense account, I'm also looking at the bills that I have that I've received over the last 2 weeks. See, I don't think about paying my bills anymore unless I'm sitting down for allocation day. They go in a spot on my desk. And then twice a month when I sit down, I open up those invoices and I pay them at that time. I literally don't think about paying bills except on those 2 days a month. And honestly, that has freed up a lot of energy and mind, just mind power, because I don't think about it. I can think about everything else. That's important. So that's how we pay bills. We recommend you follow the same method. If you like this tip, please share it with a friend, subscribe to our YouTube channel. We try to put out as valuable content as possible, and we try to keep it short and to the point because that's just kind of the way I communicate. Hey, we really appreciate you. Have a good day. Bye.
