Prioritizing profit and paying yourself as the business owner is essential for sustainable growth. By taking regular owner's draws and building a rainy day fund, you protect yourself and your business from unforeseen circumstances.
In this episode, Jordan West and Cyndi Thomason, Bookskeep discuss the importance of cash flow management, the concept of Parkinson's Law, and why prioritizing profit is crucial for the success of your business. They also talk about the challenges faced when it came to inventory management.
Listen and learn in this episode!
Key takeaways from this episode:
- Goals of Profit First: paying ourselves, generating profit, taking care of tax obligations, and managing what's left for running the business
- Segregating money for specific purposes to have a clear understanding of available funds
- Utilizing Parkinson's Law in Profit First to allocate funds for different purposes
- Understanding the impact of inventory cash flow on business finances
- Profit First helps business owners prioritize their own financial well-being and ensure the business serves their goals.
- It is important to build a rainy day fund and be prepared for unforeseen circumstances.
Recommended Podcast/Audiobook:
Buoyant Audiobook: https://www.audible.ca/pd/Buoyant-Audiobook/B0B75W36RH
Recommended App/Tool:
A2X Accounting: https://www.a2xaccounting.com/
Quickbooks: https://quickbooks.intuit.com/
Xero: https://www.xero.com/
Today’s Guest:
Cyndi Thomason, President, Bookskeep is a best-selling author and thought leader in ecommerce accounting and mom entrepreneurship. Using the Profit First method she designed specifically for the ecommerce industry, Cyndi and her team coach ecommerce business leaders so they can create a business that allows them to enjoy financial freedom through permanent profitability. Cyndi and her team understand the unique challenges of the ecommerce industry, and their mission is to enable ecommerce businesses to understand their cash flow and become profitable faster. Through a variety of programs and services, Cyndi and the bookskeep team help online businesses go from struggling to thriving and beyond.
Connect and learn more about Cyndi and Bookskeep:
Website: https://www.bookskeep.com/
LinkedIn: https://www.linkedin.com/in/cyndithomason/
Twitter: https://twitter.com/imcyndithomason
This episode’s sponsor is Finale Inventory- the ultimate solution for accurate and efficient inventory management. Trusted by thousands of brands, Finale offers seamless integrations with over 80 sales channels and platforms.
With customizable workflows and reporting features, Finale empowers you to streamline operations and scale your business with ease, preventing overselling and maximizing profitability.
Whether you're juggling multiple platforms, expanding your product range or just looking for a way to reduce operational chaos, Finale has the tools you need to succeed. Step into the future of e-commerce with Finale Inventory.
Learn more here: Finale Inventory
