I Think Profit First is Sh*t

Why I Think Profit First Isn’t the Answer — And Why My Cashflow Confident System Is Better

Let’s cut to the chase — the Profit First method? It’s just not it. If you’ve been spinning your wheels trying to get your business finances in order and feel like you’re still drowning in admin or stress, this might be why.

The Backstory: From Curiosity to Clarity

When I started coaching full-time back in December 2023, I noticed a pattern: more and more self-employed business owners with inconsistent income were coming to me for help. Naturally, I thought, “Alright, let’s dive into Profit First since it’s so popular.” I even brought the book to a photoshoot, thinking it would make me look relatable to business owners.

And then I actually read it.

While the system initially seemed like it had potential, implementing it was a whole other story. Spoiler alert: it wasn’t the game-changer it promised to be.

Why Profit First Misses the Mark

1. Overcomplicated Admin
   The core of Profit First involves setting up multiple business bank accounts — five to start and sometimes up to seven! Each account has its own role (like taxes, profit, and owner’s pay). Twice a month, you’re expected to divide your income into these accounts based on percentages. Sure, the idea is to create clarity, but in reality, it adds unnecessary admin and mental load. The constant movement of money between accounts feels like juggling plates, and if you’re already busy running your business, who has time for that?
2. It Triggers Scarcity Mindset
   Watching your bank balances drop to zero or near-zero every month isn’t just stressful — it can also reinforce feelings of financial inadequacy. Many business owners already carry limiting beliefs like “I’m bad with money” or “There’s never enough.” The Profit First system can make these beliefs worse, leaving you in a constant state of scarcity and financial anxiety. And here’s the kicker: when your brain is in scarcity mode, your ability to think creatively and plan long-term gets zapped. You’re stuck firefighting instead of growing your business.
3. It’s Not Flexible for Fluctuating Income
   If your income varies month to month, splitting it into rigid percentages can create more stress than stability. Big income months might feel rewarding, but smaller months can leave your accounts looking scarily empty, even if your business is doing fine overall.

The Alternative: Cashflow Confident

If Profit First has you overwhelmed, let me introduce you to the simple, stress-free alternative — my Cashflow Confident system.

Here’s the secret: you don’t need five (or seven!) accounts to manage your business finances. In fact, you can manage everything with one account and just two pots (or three accounts max if pots aren’t an option with your bank).

The Cashflow Confident Method

1. One Business Bank Account with Pots
   Choose a bank like Starling or Monzo that lets you create sub-accounts or pots. If your bank doesn’t offer this, three separate accounts work just fine.
2. Automate Your Tax Savings
   Set up a pot or account to automatically save a percentage of your income for taxes. (I recommend 20% to start, though this can vary.) Automation means you never have to think about it — your tax savings are sorted before you even touch your money.
3. Establish a Business Buffer
   Create a second pot or account for your business buffer (aka working capital). This acts as your safety net for slower months, high expenses, or unexpected costs.
4. Simplify Payday
   On your chosen payday, check your account balance. Subtract your tax savings and business buffer, then pay yourself your owner’s pay. Any excess can go into your buffer to build a cushion or be reinvested into your business.

Why It Works

• Less Admin: No juggling multiple accounts or doing mental gymnastics every month.
• Stability: Your business buffer ensures you can always pay yourself a consistent salary, even in slower months.
• Empowerment: By keeping things simple, you’re building trust in yourself to manage your money — no need for rigid systems or overcomplicated processes.

Ready to Ditch Overwhelm for Confidence?

If the Profit First method has left you feeling more frazzled than focused, it’s time to try something that actually works for you. My Cashflow Confident program will teach you everything you need to know to manage your business finances with ease.

From automating your tax savings to setting up a reliable system that pays you consistently, Cashflow Confident is here to make your money work for you — not the other way around.

Doors open once a quarter. Ready to feel financially empowered? Let’s do this!

Think Profit First works for you? That’s okay! This isn’t about tearing anyone down — it’s about finding the system that works best for your unique needs. But if you’re ready for less admin and more confidence, you know where to find me. ✨