The 9-Step Profit First Blueprint

🏆 This Week’s Profit First Accountant Newsletter

Estimated Read Time: 4 minutes

Hi everyone,

It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit First Accountant Newsletter!

This week, we’re diving into the foundational principles of Profit First, and why it continues to be the most powerful financial system for small business owners seeking clarity, control, and ultimately, more money in their pockets.

Watch the full video here

🔑 What We’re Covering This Week:

• What is Profit First, and why it emotionally resonates with business owners

• Why traditional accounting keeps you stuck—and how to break free

• A deeper look at each of the 9 key steps in the Profit First journey

• The biggest mindset shift: flipping the accounting formula

• Real stories, real transformations from businesses like yours

📘 What is Profit First?

At its core, Profit First is a simple yet transformative cash management system developed by Mike Michalowicz. Unlike traditional accounting that leaves profit as an afterthought, Profit First flips the formula:

Instead of hoping there’s money left at the end of the month, we start with profit and make the business operate on what’s left. It taps into natural human behaviour—most business owners check their bank accounts daily, not their P&L reports. So why not build a system around that?

📈 The Biggest Mindset Shift: Flipping the Formula

Let’s talk about something that might sound small but changes everything: the order of operations in your business finances.

Traditional accounting teaches you:

That means profit is what’s left over. It's reactive, not intentional. It puts everyone else first—your team, your suppliers, your bills—and you, the business owner, last.

Profit First flips this mindset:

Now, your profit is a priority. You pay yourself first. You build a buffer before anything else. This changes how you operate. It forces you to be more intentional with what’s left for expenses, and that discipline leads to stronger businesses over time.

As I say in the program,

💬 Real Stories, Real Transformations

We’ve worked with dozens of businesses across all sorts of industries, and the results speak for themselves:

• One client made their first profit in over seven years.

• Another slashed their costs by over £200,000.

• Some have tripled their profits and created buffer accounts to eliminate tax-time stress.

• For others, the win was as simple and powerful as finally feeling in control of their finances.

And here’s the truth: it’s not always about massive overnight change. Sometimes, it’s just setting up a pot to pay your VAT and tax on time. Or building a bonus pot for the first time. These wins build momentum, confidence, and real freedom in your business.

💥 Why Profit First Works

Mike Michalowicz learned the hard way. After selling his company for millions, he lost most of it investing in other businesses. He realised success wasn’t just about growth—it was about how money was managed. His biggest insight? Parkinson’s Law

With Profit First, we leverage that behavioural principle to our advantage: by pre-allocating money into separate “pots” or accounts, you limit waste and maximise creativity and efficiency. And it works—we’ve seen clients:

• Triple their profits

• Make their first ever business profit

• Finally pay their VAT and tax on time

• Gain confidence and reduce financial stress

🔄 The 9 Steps to Profit First Success

Here’s a breakdown of the 9 steps we guide clients through:

1. Make the Decision Are you truly ready to change the way your business handles money? This is about mindset. You have to be honest about what’s working, what’s not, and whether you're ready to do the work to improve it. For some, it’s about small tweaks. For others, big shifts.

2. Get Clean, Reliable Numbers You can’t improve what you can’t see. Before we implement anything, we make sure your financial data is up to date, clear, and accurate. If bookkeeping is behind or messy, that’s step one.

3. Complete Your Profit Assessment This is where things get emotional. You’ll see the gap between where your business is and where it could be. Many clients discover thousands of pounds in lost or misused profit potential.

4. Create Your Profit Plan (aka Rollout Plan) This is your roadmap. We break the journey into 3- and 6-month goals, based on what you discovered in the assessment. It’s not guesswork—it’s grounded in benchmarks and what’s possible.

5. Set Up Your Bank Accounts This part can feel a bit technical. We’ll help you separate your business income, operating expenses, owner's pay, tax, and profit. Fintech banks like Starling make this easier with “pots.”

6. Build Your Allocation System You need a way to regularly move money into the right accounts. We show you how to set up a simple spreadsheet or automated workflow that makes this part easy to follow.

7. Start Allocating Weekly This is where theory meets discipline. Once a week, you allocate your revenue across your accounts. Most people get stuck here, so we help you build a habit that sticks.

8. Stay Accountable Change only works if you stick with it. That’s why we offer group coaching calls, 1:1 support, and community so you never feel like you’re doing it alone. Even if it's just your partner holding you accountable—you need someone.

9. Watch for Smoke Alarms This is the advanced level. Once the system is in place, we help you look out for financial patterns or decisions that may cause trouble down the line. Spotting these early can save you thousands.

💬 Final Thoughts

Profit First isn’t just a system—it’s a mindset shift. It’s about prioritising yourself, your family, and your long-term goals as a business owner. We’ve worked with dozens of businesses from all sectors and sizes, and the results speak for themselves.

Whether you want just a simple VAT savings account or a full-blown overhaul of your finances, Profit First can meet you where you’re at.

Ready to take control? Let’s go.

Until next time,

Stephen Edwards
Profit First Accountant & Business Coach
📧 [email protected]
Gro Profit First Accountants

📗 Haven’t read my book yet?
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Want some help?

3 Ways I can help you.

1. Book a Tax Diagnostic Discovery Call To See if we think we can save you money? If you are not a client, then you can book a call HERE so we can learn more about your business.

2. If you are a client and we don’t already help you with Profit First or you taxes, email me via [email protected] to arrange a chat about the Profit First System and how it can increase your cash balance and profits (guaranteed)

3. Get some tax tips from my TikTok HERE
   
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