Money Management to Ensure Profit First
What if you could use a proven cash flow system to ensure profits are first within your landscape company?
A few weeks ago, Sahra and I had a Profit First meeting with one of our Profit First For Landscapers clients. Prior to that meeting, I analyzed their progress since the start of the program. Upon inspection, I noticed that in just 6 short months of implementation, our client had moved the needle 4% to the positive in profit, increasing their take home pay by 2%, which in turn put them 2% positive in savings for their yearly taxes and reduced their operating expenses by 8%!
Now, what does that mean if you don’t know about the Profit First method?
It means that they had more money in the bank from profit, so they were able to pay themselves more and redistribute that wealth by putting money in the bank to pay for taxes at the end of the year. Plus, in the process of increasing profit, they reduced operating expenses (that’s always a win!).
Profit First implementation is all about bringing clarity on where your money goes. When a client pays you, you get paid 100% of what you charged. Think of that as a whole pie. You then, have to decide how you are going to divi up that 100% of the pie. With the Profit First method, you pay yourself, set money aside to pay uncle Sam and use the rest to pay your operating expenses.
Take a look at this chart to get a better understanding of what I’m talking about:
So how can you start implementing the Profit First method in your lawn care and landscaping business right now?
The first place to start is by working with a Profit First Certified Professional. When you work with The Green Executive® to implement Profit First in your business, we provide
- an assessment of where the company currently is financially
- a road map to achieve and sustain permanent profitability
Our seven page assessment and roll out plan (road map) paves the way to profitability by helping you with pricing for profit. From there, our coaching will give you the tools you need to control your expenses and use your money smarter in order to achieve your overarching goals. Plus, we’ll help you understand how to increase your sales by offering more services that already have higher margins.
Your Challenge: Assessing Your Companies Financial Health and Architecting Your Cash Flow
While we know that Profit First isn’t the first financial method that business owners consider, we can guarantee you that when you do, you’ll have better control of your expenses and increase your sales margins when you choose to implement this process. We’ve seen results time and time again here at The Green Executive®. It’s why we started the Profit First for Landscapers Facebook group. So we can show business owners like you how you can make profit a habit, not an event.
“If you can’t pay your bills, you can’t afford your bills.”
Let The Green Executive® help you get out of your financial rut and back on track to making profit by
- analyzing your Profit & Loss Statements and Balance Sheet
- designing a plan to control your expenses, increase sales and margins