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Taming the Cash-Eating Beast: How to Create A Profitable Cash Flow

Taming the Cash-Eating Beast: How to Create A Profitable Cash Flow

by | May 8, 2022 | Profit First, Better Biz Info

 

We are always told to set aside a bit of our money for savings in our personal finances. In this video, Bill explains how Profit First, a cash flow management system, implements similar strategies to help your business increases profits, cuts expenses, and plan for future obligations like taxes and debt. 

See the video on our YouTube channel here! 

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Want to learn more in-depth strategies for creating a profitable cash flow? Check out our new 10-week Permanent Profitability Program–an online course that teaches small business owners to implement Profit First, a cash flow management system that increases profits and cuts expenses, all while automoating your finances in a more understandable and sustainable way!

In just 10 weeks, you will: 

👉Have learned new strategies for controlling your cash flow like a pro! 

👉Have connected with and gotten to know 8-10 other business owners like you! 

👉Have implemented Profit First, the best cash flow management system for increasing profits immediately and permanently  

👉Feel less stress regarding the finances in your business

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#businesstips #managementtips #betterbizinfo #supportsmallbusinesses #smallbusiness #profitfirst

7 Reasons Why Financial Habits are Important

7 Reasons Why Financial Habits are Important

by | Mar 29, 2022 | Profit First, Better Biz Info

 

Habits drive the course of our everyday lives. Mike Michalowicz even said that,
“PROFITABILITY IN YOUR BUSINESS IS NOT AN EVENT-IT’S A HABIT.”
Check out these 7 reasons for why developing healthy financial habits can create more profit and success in your business, and get 3 strategies to develop them!
7 Reasons Why Financial Habits Are Important
 
1. When you develop good habits with money, you’re allowing yourself to have a long-term plan. Being intentional and having a plan for how you spend your money is ensuring that you are working towards achieving your short and long-term goals
 
2. If you don’t have financial habits in place, you are more prone to irrational and impulse decisions. When faced with tough times or unexpected circumstances, your decisions tend to be rasher and ultimately lead to the downfall of your business. If you have some healthy habits and routines already set in place, you won’t be so susceptible to uncertain times or unexpected difficulties.
Check out this video that talks about how to not make bad decisions when faced with business crises.
3. Good financial habits come with more financial understanding of where your company is at and where it is going. When you develop financial habits in your business, you are naturally learning more about how those finances work in your business. Because you are working to create good habits, you automatically start to learn more about where your business is at and are in a better position to lead it to where you want it to go.
Check out this video that talks more about this. 
4. Habits set the tone for your entire life and business. If you operate with bad habits, or a lack of any good habits, it shows a lack of consistency in your life and your business. Habits bring a healthy structure to your business, and ensures a business that is well-planned, well-led, and on a path of success rather than uncertainty.
5. Having good habits will leave you better rested. If you don’t have good habits in place, you are required to make thousands of minute decisions every day. You have to spend your precious time and energy as a business owner to then choose what to do in every given situation. Why not automate your finances and spend less energy worrying about them? You will be more clear-headed and have more mental energy and actual time to do the things that you should be doing as a business owner.
6. Developing habits will make you happier! When we perform habitual actions, our brains literally release pleasure chemicals in reaction to those habits. It motivates us to continue to do those things. That’s why good financial habits are essential and contribute to a healthier relationship with your finances, and eliminating bad ones becomes even more important.
7. Business finances are more similar to personal finances than you think! Developing financial habits in business is much like developing them in your personal finances. The big stressor to develop a budget, pay yourself first, and create healthy spending habits is widely accepted when discussing personal finances. But it is the same with business finances! You need to be developing healthy saving and spending habits, so you are prepared for tomorrow, and not just surviving for today. We at Better Biz Info help you to develop those habits by teaching the Profit First cash management system, which automates your finances and develops a habit of setting aside profit and taxes.
 3 Strategies for Developing Healthy Financial Habits
1. Celebrate every victory! Developing habits is hard. It takes weeks of consistent effort, and no one is perfect. When you do well, reward yourself! We at Better Biz Info are all about rewarding yourself for your efforts, no matter how small. That’s why we love the Profit First system that rewards you with a Profit bonus every quarter! You are a business owner and deserve a reward for all the hard work you do.
 
 
2. Practice, practice, practice! Messing up is part of the process. Try again until it becomes second nature, automated. If you do well one day, and terribly the next, know that you are normal. It’s the effort that matters. If you stick with it, it will stick with you!
 
 
3. Evaluate your habits. Take a step back occasionally and evaluate the habits you have and the ones you are developing. Are they healthy? Are they effective? If they’re not, ask yourself why and make adjustments. If it isn’t a goal that is leading you towards a better relationship with your finances, reducing your financial stress, and preparing your for the future, drop it! Dropping ineffective routines is just as important as developing new ones.
 
Developing Healthy Financial Habits Worksheet:
What are 2 unhealthy habits you would like to eliminate?
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What are 2 healthy habits you would like to develop?
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Write 1 way you will work to develop each healthy habit:
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Thank you for reading, and we’ll see you next time!
Bill Litster
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See more helpful content on our blog here.
 
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Ways to Cut Business Expenses free worksheet!
 
Schedule a FREE CONSULTATION with Bill to learn how we can help you develop and maintain healthy habits in your business to achieve more profits!
 
Download this article for free here.
 

 

 

Improve Cash Flow with the Small Plate Philosophy

Improve Cash Flow with the Small Plate Philosophy

by | Feb 9, 2022 | Better Biz Info, Profit First

Mike Michalowicz, author of the best-seller book Profit First, often compares finances to diet. For both, there are a few core principle that are essential for creating a healthy balance in your life. Check out this worksheet to learn the 4 principles for creating an effective and healthy cash flow management system, called the Small Plate Philosophy!

Sign up for our newsletters here to get the first two chapters of Mike Michalowicz’s Profit First book for free, in which he explains the Small Plate Philosophy in depth! 

You can also check out how to create these “small plates” in your business by learning more about the Profit First system here!

Download the PDF version of this worksheet here.

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6 Tips to Prepare for Taxes

6 Tips to Prepare for Taxes

by | Jan 23, 2022 | Taxes

We asked thousands of business owners about the number one most frustrating part of business finances, and guess what it was? TAXES. If you are feeling the stress of preparing for tax time in your business, check out these 6 tips to help you prepare better for taxes. 
With these proven strategies, you will be better prepared to pay your taxes, and we can help you reduce your tax liabilities even further. 

 

1. OPEN A SEPARATE TAX ACCOUNT

 

 The best way to prepare for taxes is to start setting aside money for them right now. Open a separate bank account specifically for taxes, and start allocating a certain percentage of your income into it on a regular schedule (we recommend every two weeks). You can calculate the percentage your business should allocate, but we recommend 15% (Learn why we use 15% and how we help you do this with the Profit First system).

 

If you’re worried about your bank not allowing you to open multiple accounts, we can help. 

 

 

 

 

 2. SAVE MORE FOR TAXES THAN YOU THINK YOU’LL NEED 

 

It is always better to be over-prepared than underprepared. Saving a high-percentage for taxes ensures that you will have enough to pay them when the time comes, and may even be able to pay yourself back a bonus if you end up having a surplus! 

 

Behaviorally, it feels a lot better to pay taxes directly from the business and sometimes even be rewarded monetarily for your preparedness. We’ve even had a client who did this and had 3 times as much saved for taxes as she needed, and she was able to reward herself-all while running a profitable business throughout the year. Check out her experience here. 

 

 

3. KEEP YOUR BUSINESS AND PERSONAL ACCOUNTS SEPARATE

 

 

Keeping your business and personal accounts separate is good advice in general, but especially when it comes to preparing for taxes. Separate business accounts help you better estimate taxes, pay the correct amount, and keeps your finances more organized and accurate. It also prevents you from stealing from your personal money to pay for business expenses!

 

4. DON’T RUN UP EXPENSES TO CUT TAXES

 

This is one of the most damaging money myths out there. Many business owners have been told that you need to “spend money to make money”. While of course this is true from the standpoint of some business aspects, it is illogical when it comes to taxes. Running up expenses to reduce taxes is the same as spending $10 to save $3. It is very damaging to business.
The goal is to run the business as profitably as possible (that is the only way to achieve financial freedom) by creatively and carefully cutting down your expenses so that you can make more money while spending less. 

 

 

 

 

 

5. KEEP A RECORD OF EVERYTHING
 
We cannot stress this enough: keeping a record of everything makes tax time so much easier. Whether you or your accountant are preparing taxes, you don’t want to be in a position where you need a bunch of different documents from the last year and you have no idea where they are. KEEP A RECORD. Ideally, you should be keeping an organized digital record of everything and making sure it is in a secure place. 
 
6. FIGURE OUT DUE DATES
Knowing the deadlines of your taxes can save you a lot of time, stress, and-you’ll never believe it-money! No one wants to pay even more more in taxes because they missed their deadline, but too many fall prey to not being prepared for due dates. Use the last 5 steps to become better prepared for taxes so you can eliminate that stress from your business! 
 
 
We are Certified Profit First Professionals, masters at helping you implement a cash flow system that helps you prepare for taxes while maximizing profits! We can help you get started on preparing for taxes, cutting expenses, and start growing your profits today. 
Schedule Your Free Profit Call Now
 Download PDF worksheet here. 

How to Plan Ahead for Business Finances

How to Plan Ahead for Business Finances

by | Nov 23, 2021 | VLOG

 

When you look at financial statements, you are always looking backwards.That doesn’t help you know where you are or where you’re going. Profit First is the system that makes a plan for the future so you can start driving your car going forward. Sign up for our newsletter or follow us on Facebook to see more tips and tricks!

How to Manage Political Discussions in the Workplace

How to Manage Political Discussions in the Workplace

by | Feb 5, 2021 | Better Biz Info

 

Do you ever worry about how to navigate political discussions in your workplace? Check out these 4 tips to help you know ways in which you can foster healthy, effective, and respectful political conversation! 

See the video on our YouTube channel here! 

#businesstips #managementtips #betterbizinfo #supportsmallbusinesses #smallbusiness #profitfirst

What do all businesses have in common?

What do all businesses have in common?

by | Jan 29, 2021 | Profit First

Every business is unique, but they all have one commonality that ties them all together. Watch this 1-minute video to learn what Bill considers to be the lifeblood of all businesses!

Watch the video on YouTube here
Profit First Financial Management: Bill Litster on The Freelance Economy Podcast

Profit First Financial Management: Bill Litster on The Freelance Economy Podcast

by | Oct 10, 2020 | Profit First, Better Biz Info

www.theurldr.com/profit-first-financial-management-freelancers-small-business/

Bill Litster, founder and owner of Better Biz Info, is a guest on the podcast “The Freelance Economy”, where he explains Profit First. He discusses how it works, why he chooses to use Profit First, and how it has helped his clients acheive their goals and grow their business!