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Why Your New Year’s Resolution Should Be “Profit First” in 2025
If you’re like most small business owners, you’ve probably said it a thousand times: “This year, I’m going to finally increase my revenue!”
That’s a solid ambition—who doesn’t want bigger numbers on their statements? But what if we told you there’s something even more critical than growing your revenue?
It’s called profit, and putting it first should be your #1 New Year’s resolution for 2025.
Wait, Aren’t Revenue and Profit the Same Thing?
In a word, nope.
Revenue is the cash that comes in the door from sales before anything gets paid out.
Profit is what’s left after you’ve covered operating costs, payroll, taxes, your fancy cappuccino budget—literally everything.
High revenue can be exciting. It looks great on a headline or a conference stage. But unless you’re a VC-backed tech startup with a runway to burn, you can’t live on revenue alone. Real businesses need real profits to survive and thrive.
Why “Revenue At All Costs” Can Be a Trap
Let’s say your business raked in $500k last year, but your expenses totaled $520k. That leaves you in the red by $20k. Not a fun place to be.
While it’s tempting to chase that big revenue figure, keep this in mind:
Spending more to make more isn’t always practical unless you have a clear path to eventual profitability.
Cash flow goes hand-in-hand with profit. If your expenses outpace your incoming cash—even temporarily—you could face major setbacks like missed payroll, late vendor payments, or worse.
What Does a “Profit First” Mentality Look Like?
The concept is simple: pay yourself (and your profit) first.
Instead of crossing your fingers that you’ll make enough money at the end of the month or quarter to cover expenses, you reserve your profit upfront and budget around it.
This shifts your mindset from “I hope there’s something left over for me!” to “I’ll take my cut first, and make sure I don’t overspend on the rest.”
Practical Tips for Profit First
Open a separate “Profit” account: The moment revenue comes in, immediately transfer a set percentage to this account.
Pay your bills from what’s left: You’ll be forced to run a leaner, more efficient operation because there’s less to burn.
Make incremental adjustments: Start small—maybe 1% to 5%—and gradually increase as your business adapts to operating more efficiently.
New Year, New Financial Mindset
If you’ve ever felt like you’re on a revenue hamster wheel—running faster but never getting ahead—this is your sign to jump off. The new year is the perfect time to adopt a fresh approach that prioritizes your bottom line over vanity metrics.
“But My Business Needs to Spend Money to Make Money”
Sure, some level of spending is unavoidable, especially if you want to scale. The difference is being intentional about that spending and ensuring it won’t jeopardize your profitability in the long run.
If you’re a tech startup chasing that billion-dollar valuation, revenue might matter more in the short term.
But for most SMBs, consistent profitability is the key to stability, growth, and peace of mind.
How We Can Help You Put Profit First
Implementing a “profit first” mentality can feel daunting (I mean, you’ve been told for years that more sales = more success, right?). But that’s exactly why having an experienced financial partner is so crucial.
We’ll help you set realistic profit targets: No guesswork, just data-driven insights.
We’ll show you how to streamline expenses: Because every dollar saved is another dollar toward that profit account.
We’ll keep you accountable: Ensuring you actually follow through and watch your bottom line grow.
Make “Profit First” Your 2025 Mantra
Reimagining your finances might not be as flashy as launching a new product or doubling your social media followers, but it’ll do something more meaningful: it’ll secure your business’s future.
Ready for a Game-Changing Financial Year?
Let’s kick off 2025 by building a business that’s profitable, sustainable, and unapologetically focused on your bottom line.
Contact us to schedule a chat — let’s figure out if “profit first” should be your strongest New Year’s resolution yet.
Here’s to a new year where your bank account actually reflects the hard work you put in. Cheers to profit first, and cheers to you!
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