Post 11: How to Build a Profit-First Business Model That Pays You
“Revenue is loud. Profit is quiet. Make sure you’re listening to the right one.”
Most business owners don’t have a profitability problem—they have a prioritization problem.
We’ve seen it a hundred times: revenue rolling in, jobs getting done, clients getting serviced… but at the end of the month? The bank account is whispering “Where’d it all go?”
Let me tell you a story.
One of our clients—we’ll call him Mike—ran a successful mid-size commercial painting business. His revenue was healthy, over $2.5M a year. But every quarter, Mike was chasing invoices just to make payroll. He wasn’t paying himself consistently. And every time tax season hit, it was panic mode.
Why? Because he was stuck in the default model most businesses follow:
Revenue – Expenses = Profit
Whatever was left over at the end… that was “profit.” Some months it was there. Most months, it wasn’t. Sound familiar?
We introduced Mike to a simple but powerful shift in thinking: Profit First.
What is Profit First?
The Profit First Model flips the equation:
Revenue – Profit = Expenses
That subtle change is a game-changer. Instead of hoping profit shows up, you decide it comes first. Then you run your business within the limits of what’s left.
5 Steps to Build a Profit-First Business Model
1. Open 5 Bank Accounts
Yep. Five.
Income
Profit
Owner’s Pay
Taxes
Operating Expenses
It sounds excessive until you try it. The physical separation forces discipline. When revenue lands in your income account, you move it—on schedule—into the other buckets based on your pre-set percentages.
“If it’s not separated, it’s not safe.”
2. Set Your Starting Percentages
Here’s a healthy starting point (adjust based on your business model and size):
Profit: 5–10%
Owner’s Pay: 30–50%
Taxes: 15%
Operating Expenses: 30–50%
Even if all you can do is 1% to profit, start there. It builds the habit. Profit is a muscle, not a miracle.
3. Stick to a Rhythm
We recommend a bi-weekly or monthly “allocation day.” On that day, you transfer funds from income into each of the other accounts according to your percentages.
Don’t skip it. Don’t delay it. Make it a non-negotiable part of your financial rhythm.
4. Trim to Fit
Here’s the hard truth: if you can’t afford your expenses after profit and pay… you’re spending too much.
Profit First reveals your overspending in real time. It forces smarter decisions. Mike found over $7,000 a month in subscriptions, part-time help, and fleet costs that were completely unnecessary.
5. Reward Yourself Quarterly
Each quarter, take half of what’s in your profit account and distribute it as an owner’s reward. Not for bills. Not for reinvestment. For you.
The rest stays in the account to build a cushion.
This single move transformed Mike’s mindset. Suddenly, he wasn’t running on fumes. He was building wealth.
Why This Works
This method forces behavior change. It helps you:
Get paid first, not last
See overspending sooner
Avoid tax panic
Build reserves
Stop running a business that’s secretly just a stressful job
And perhaps most importantly…
It makes your business start to feel like a vehicle for freedom, not a trap.
Take Action This Week:
Audit your finances — Are you paying yourself consistently? Is there a profit account at all?
Open your accounts — Don’t overthink it. Just open them.
Pick your first allocation day — Mark it on the calendar.
Start small, but start — Even 1% profit is progress.
📎 Related Blog: Profit Leaks: The Hidden Costs Killing Your Margins