Small Business Owners Must Pay Themselves First
- Author
- Triumph Business Solutions
- Published
- Fri 22 Aug 2025
- Episode Link
- None
Are you part of the 82% of small business owners at risk of failure due to poor cash management? In this eye-opening episode, we tackle the financial reality most entrepreneurs face but rarely discuss.
Did you know that 54% of business owners are either breaking even or losing money? And of those who do generate profit, the median income is just $48,000 annually—despite working 50-60 hour weeks and shouldering all the stress of business ownership. This shocking statistic reveals a fundamental problem in how entrepreneurs approach their finances.
The issue stems from what we call the "Turkey Platter Theory"—when you put yourself last in line at the financial table, you're left with nothing but scraps. We break down how Parkinson's Law affects your business spending (expenses will always expand to consume available resources) and why traditional accounting formulas set you up for failure.
We dive deep into the Profit First methodology that flips the script from "Sales - Expenses = Profit" to "Sales - Profit = Expenses." By creating a structured system with separate accounts for Profit, Owner's Pay, Taxes, and Operating Expenses, you ensure you're paid properly before expenses consume everything. We also explore the critical difference between owner's pay (for living expenses) and profit (for celebration and rewards).
Beyond basic cash management, we explain why proactive cash forecasting is essential for business success. A 13-week cash flow projection gives you visibility to anticipate challenges, model different scenarios, and make truly informed decisions instead of hoping for the best.
Ready to transform your relationship with your business finances? Start with small, incremental changes that build powerful habits over time. Book a free 15-minute consultation through the link below to see if a Profit First cash management system is right for your business. It's time to stop letting your business control your finances and start controlling them yourself.
