I wrote a $6,000 check to join a professional organization.

At the time, we only had $60,000 in the bank, and that check terrified me. What if we ran out of money? Was I making a terrible mistake?

That fear exposed a deeper issue. I had no idea what the money in our business account was actually for. Was it enough? Too much? I didn’t know. And that scared the shit out of me.

I was flying blind.

Then I found a way out.

It’s a book and a system named Profit First, and it completely changed how I handle money in the business.

Mike Michalowicz built it around how we actually behave as business owners. We don’t live in our P&Ls, and we don't use them to make day-to-day decisions. Instead, we log into our bank accounts and make decisions based on our balance. We don't trust the P&Ls, but we trust our bank balance.

Profit First doesn't fight our natural tendencies. It embraces the reality that we won't stop making decisions after logging in to see our bank balance.

Here's how it works...

You set up five bank accounts: Income, Owner’s Pay, Profit, Taxes, and Operating Expenses (OPEX).

Money from clients flows into Income. Twice a month, you distribute it across the others using set percentages—say, 5% to Profit, 15% to Owner’s Pay, 10% to Taxes, and the rest to OPEX.

You run the business off OPEX. If that account runs dry and you have to move funds, that’s your business telling you something’s broken. Listen to it. Move the money to get by, and then reevaluate your spending and the amount you distribute between accounts as needed. Tweak over time until your finances stabilize.

You’ll still check your bank balance, but soon, you'll only care about OPEX. The rest becomes untouchable. That’s the mindset shift.

It’s simple. And powerful.

I followed the system verbatim for years before customizing it, yet the foundation remains. It brought order, confidence, and consistent pay.

We teach concepts like this in The Business of Agency Mastermind. If you want a profitable, predictable agency that gives you more time and freedom, apply now.

Stop guessing. Start growing.

~ Erik

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