The Profit First Method for Solopreneurs

Running a business solo doesn’t mean you have to hustle in the dark. If you’ve ever paid yourself last (or not at all), the Profit First Method could be the game-changer you need.

At SMP Financial Services, we help solopreneurs like you stop guessing and start growing—with a cash management system that puts you first.

💰 What Is Profit First?

Created by Mike Michalowicz, the Profit First Method flips the traditional accounting formula:

Traditional Formula:

Sales - Expenses = Profit

Profit First Formula:

Sales - Profit = Expenses

This means you take your profit before spending a dime—creating intentional constraints and clarity.

💼 How It Works (Simplified)

1. Open 5 Business Bank Accounts:

• Income

• Profit

• Owner’s Pay

• Taxes

• Operating Expenses

2. Deposit All Revenue into the Income Account

3. Twice a Month, Allocate Funds Based on Percentages

• For example: 5% Profit, 50% Owner’s Pay, 15% Taxes, 30% Operating

4. Use Only the Operating Account to Pay Bills

✨ Why It Works for Solopreneurs

• Forces healthy boundaries with spending

• Ensures you’re always setting aside for taxes

• Builds personal wealth alongside business growth

• Turns sporadic income into stable, planned finances

🌟 SMP Pro Tip: Start Small

You don’t have to implement the full system overnight. We help clients ease into it by:

• Creating automated transfers in Relay or their business bank

• Tracking percentages in our internal Asana workflows

• Reviewing allocations monthly for improvement

Ready to Pay Yourself First?

The Profit First Method is built into how we operate at SMP. Whether you want help setting it up or need someone to run it for you—we’re here.

🔗 Book a discovery call at www.smpfinance.com 📧 Or email info@smpfinance.com

From Numbers to Know-How—We’ve Got You.