In the Zone Magazine: Q2 2023

WILL POWER

How Amy Jenkins (center) uses her family’s experience to help others.

Picture This.

TRADITIONAL FORMULA

In this model, your business’s profits are whatever money will be left over. It’s simple in theory, but it is more likely to leave you with less profit—if you have any at all.

Why? Because you’re human, and humans aren’t good at keeping leftovers. If you have food to eat, you eat it. If you have money to spend, you spend it.

PROFIT FIRST FORMULA

What you need is a formula that prioritizes your profit, so that you know at the beginning of the year how much money you want left.

By deciding up front how much you want to have at the end of the year, you force yourself to find ways to get the same things done for less money.

While the mood

on Main Street has brightened, concerns about the economy, stubborn inflation, and the banking system are weighing heavily on small business owners. Everyone is getting nervous about the recession that the news says is looming.

Certainly inflation has landed. Prices are up —at the gas pump, at the grocery store, at the car lot. But here’s another reality: While families are dealing with sticker shock, profits for companies are skyrocketing. Data from the U.S. Commerce Department shows that corporate profit margins are the largest they’ve been in 70 years! And that’s on trend with what we’re seeing at One21 AccountAbility. More than 75% of our clients are posting profits at a record rate. That’s not to downplay the fact that there are many small businesses that are struggling—they are—but profit seems to be more prevalent than recession, and for that we’re very grateful.

And yet ... recession is still top of mind. Just recently, a longtime client made a large sale, and she has a significant influx of cash. She called and asked if she should send it all to the SBA to pay down her loan. My answer? No. Recession or otherwise, it is never a wise idea to empty your bank accounts to pay down debt, especially with a single-digit interest rate. If it’s bothering you to be carrying that low-interest note, then take up to half of that and apply it to debt reduction. The rest should sit in savings.

Instead, I’m enouraging all my clients to invest in themselves and their business. Take Amy Jenkins (page 16) and Lisa Damico (page 10) for example. Both are highly successful in their various careers, but they are also the mother of reinvention, pivoting their life and businesses in extraordinary ways over the years. And now both are learning to leverage Profit First to create the life and business they’ve always dreamed of ... in the face of “recession.” Isn’t that beautiful?

So here’s to all the small business owners doing hard things, without any guarantee of success. Here’s to ignoring the headlines and focusing on the end goal. And here’s to walking into the second half of 2023 with a profit-first mindset and the audacity to dream big and make a difference in the world.

That’s not to downplay the fact that there are many small businesses that are struggling— they are—but profit seems to be more prevalent than recession, and for that we’re very grateful.

REMARK ABILITY The Matrix

Mainstreamed

A crash course in the world of neobanking.

A neobank is a financial technology company that offers the usual banking fare such as receiving direct deposits and transferring money, in a more streamlined and flexible way than traditional banks. Sometimes called “challenger banks,” they usually specialize in a few financial services and insure deposits through a partnership with a bank insured by the FDIC.

While neobanks offer online banking services, they’re not the same as an online bank. The latter has FDIC insurance and offers a wider range of services, including CDs, investments, and loans. Some brick-and-mortar banks have online-only divisions. But because they are still tethered to a traditional bank, they are considered online banking options, rather than neobanks.

Not confusing at all, right? Think of it this way: if banks were like computers, then a traditional bank would be a desktop computer, an online bank would be a laptop, and a neobank would be the newest iPhone.

It’s worth noting that many traditional banks offer online access to their regular accounts. But they aren’t online-only. Customers have access to bank branches, and accounts tend to have monthly fees and low rates.

If you’re looking for banking convenience and prefer doing most of your financial tasks online, a neobank could be a good choice. You could save on fees and even earn interest. But a neobank account is best for people whose accounts are mostly on autopilot and who don’t need to deposit cash, send wire transfers, or use expanded account services.

Will neobanks work for Profit First?

Potentially! If your Profit First program is fully established, the automation features are both convenient and compelling.

NeoPros

Easy access. Neobanks let consumers manage most of their banking on a smartphone app or computer, 24/7, without having to visit a branch. Some of the best neobanks have apps that are highly rated in app stores. Applying could also be easier. Some neobanks don’t check banking histories, for example, meaning your account is more likely to be approved if you’ve had accounts closed in the past.

Competetive rates. Neobanks don’t have to maintain branches, and some will pass the savings on to you in the form of low or no monthly fees or high interest rates. If you’re paying a $10 monthly fee at a traditional bank, switching to a neobank could save you $120 a year.

Make sure you read the terms of service. Some neobanks charge for premium services or require a certain number of transactions each month to get the best interest rates. Before signing up, make sure the offer matches your spending habits and savings goals.

NeoCons

Limited customer service. With no branches, expect limited personal help. Some providers offer customer service through social media accounts or by phone. They may also have online chat options. Those options can be helpful for basic banking questions. But if your account is frozen or closed because of suspected fraud, for example, you may have a tough time reaching someone who is authorized to help resolve the situation.

Fewer options. Neobanks offer some digital banking services, but many lack broader banking options, such as the ability to send wire transfers or easily accept cash deposits. In addition, they may offer fewer accounts. As mentioned above, a neobank might offer a spending account, but they might not offer certificates of deposit, investment options, or loans.

REMARK ABILITY

Timeless Beauty

Sports Illustrated announced that 81-year-old Martha Stewart will appear on one of the covers of this year’s Swimsuit issue. She will dethrone Maye Musk (yes, that’s Elon Musk’s mom), who appeared on last year’s cover at age 74, as the oldest SI Swimsuit cover model ever.

Artificial Romance

UP FOR DEBATE

Snapchat influencer Caryn Marjorie made more than $71K in one week after releasing an AI version of herself, CarynAI, and charging fans $1 per minute to be their virtual girlfriend. In May 2023, CarynAI had more than 1,000 “boyfriends,” and Marjorie estimates it could eventually bring in $5M per month.

“Is the umbrella of photography large enough to invite AI images to enter? Or would this be a mistake?

...With my refusal of the award I hope to speed up this debate.”

—Boris Eldagsen, German photographer, in response to his AI-generated photo winning the prestigious Sony world photography award in April.

CHECK YOUR BALANCE

2in3 Americans who are employed full-time report being unable to maintain a worklife balance.

>12 hours per week is what the average American spends on liesure and personal care.

1/2 The proportion of Americans who consider themselves workaholics.

9.4 Italy’s work-life balance score (out of 10), making it the country with the best work-life balance in the world.

63% of Americans say they would choose better work-life flexibility over a salary bump.

Business Flight Plan

In 2010, Donald Miller started the business he’d always dreamed of. Although his business was doing ok, he quickly realized it wasn’t what he thought it would be. Everything depended on him, and he was drowning in the mundane day-today. (Sound familiar?)

For years, his business struggled to produce dependable, predictable results. Over years of fits and false starts, Don grew his business from nothing to nearly $20 million. In the end, he realized there were six key parts of a business, and if they were managed well, the business would fly far and fast. He’s captured those lessons in his book How to Grow Your Small Business: A 6-Step Plan to Help Your Business Take Off*

As part of Profit First Mastery, One21 had the opportunity to sit down with Donald for a private book preview and conversation. If you’re facing any number of the common weaknesses that plague small businesses, then this book provides a plan that could prevent or overcome the many problems you might be facing.

ONE21 FACT

A Bic ballpoint pen produces 1.2 miles of writing. Use that on your next trivia night.

BOOK CLUB

PERSON ABILITY

ONE-ON-ONE WITH

Lisa Damico

Picture-perfect love through a photographer’s lens

For Lisa Damico, photography isn’t just about images; it’s about identity. “I look at it as a transformation process,” she says. “All my clients are regular people, but as I take them through the experience, showing them the right posing and lighting, paired with professional makeup and styling … you can literally watch their entire demeanor change. I love helping my clients realize their potential, without changing who they are.”

Through personal branding and headshots, Lisa helps her clients find themselves. She helps them find someone else, too, through her unique niche in online dating profile consulting.

“Sure, great profile photos are important to standing out, but there is so much more to it,” she says. “Before we take any photos, we sit down together and look at their profile to see where they need assistance. We have a great team of experts encouraging them, setting them up for success. We really listen to who they are, and we help them to feel optimistic about putting themselves out there in the online dating world and then walking into their date.”

Perhaps no one is more surprised by this turn of events than

Lisa herself. If you had told her 10 years ago that she would be helping people find their soulmates, she would ask you how she did it! “I had been a foreign language and international relations major. I studied abroad for a while. During this time, I found great joy in photography. When I came back, I began to work for a nonprofit organization, but it didn’t feel like me. I was looking for something that would make me excited about work. I needed a creative outlet, but I also enjoy the business side.”

As she leveled up her photography skills, she began turning that passion into a business.

But she knew she couldn’t do it alone. “I felt like I was in the category of a ‘part-time’ photographer. I had consistent income and clients, but I needed more of everything—more structure, more income, more clients, more control,” says Lisa. “With the intent of growing my business, I needed to feel in control of my money and where it was going. I had read Profit First, and I really wanted to find a bookkeeper who utilized it.”

Before she knew it, she met her perfect match: Venus Michael. “Working with Venus

“We really listen to who they are, and we help them to feel optimistic about putting themselves out there in the online dating world and then walking into their date.”

PERSON ABILITY

UNDER HER BELT

Fun Fact: Lisa was once the women’s Brazilian Jiu Jitsu blue-belt champion of Switzerland.

“I used to do high-level jiu jitsu competitions—I also coached a women’s competition team. It helps me in photography, because I have a really good sense of what people are doing with their bodies.”

felt like a next-level business decision,” says Lisa. “Before Venus, I had to look at my different financial reports and make guesses about the financial health of my business. Now I can see where I am at a glance, and I can see very quickly how it compares to past months, past years. Because she helped put the infrastructure in place, I can make informed decisions about how I should run my business.”

More than financial expertise, though, Lisa appreciates that Venus strengthens her sense of identity as a business owner. “For your business to grow, you have to have someone in your

corner who knows what they’re talking about, and Venus has very much been that for me,” she says. “She helps me be the business owner I aspire to be, and she keeps me accountable. Working with her makes me feel more confident, polished, and professional.”

Now that she has a perfect picture of her financial situation, growing her photography business is a snap. “My office and photography space used to be one, but I really wanted to have my own work space that was separate,” Lisa explains. “I said, ‘Hey Venus, this is what the rent would be—can we look at

my numbers and see if that’s a responsible financial decision?’ She gave me the green light, Profit First helped fund it, and now I’m here and I love it!.”

With the confidence and security of Profit First, and with an expert bookkeeper at her side, Lisa gets to focus on using her true love of photography and business to help her clients find their own true love. “Photography is all about being able to see people’s true potential, just like how Venus was able to see mine. In a way, it’s creating art. That’s what inspires me—making people feel more confident, helping them feel beautiful.”

A Firm Foundation

Why does every photo studio need a dedicated makeup artist? Because the secret to success is confidence— especially when all eyes are on you.

STORY NIA FORD

Makeup is more than just a career. To some, it’s an artistic outlet or a fashion statement. But to me, it’s incredibly personal. At 15 years old, a violent attack left me with permanent physical scars and deep emotional wounds. As a

coping mechanism, I turned to makeup to redefine what “beauty” truly meant. Tapping into my creative side, makeup became my escape. As I healed, my artistry thrived and I began to venture away from my own face to others. The smiles and

elated reactions started to feed a part of me that I didn’t know existed; a part of my heart that was fragile and broken. Though deeply traumatic, my experience has given me a unique understanding for the clients sitting in my chair. For

most of us, makeup goes much deeper than looking beautiful— it’s a way to feel more confident and empowered, inside and out. It still gives me such joy to see how I can help other women feel beautiful, confident, and cared for. And that confidence translates on camera, delivering images that make both the client and the photographer happy. Which is exactly why I passionately believe that professional makeup artists (MUA) play an integral role in a photography studio’s bottom line. Here are three compelling reasons to consider adding an MUA to your photography team:

Firstly, makeup can enhance a person’s appearance. Professional makeup artists have the skills and knowledge to accentuate a person’s best features and minimize any flaws. Applying makeup that compliments the client’s skin tone, facial features, and style only serves to increase the client’s confidence, and this will lead to better photographs. A makeup artist can also apply makeup that is suitable for the lighting and setting of the photoshoot, ensuring that the client looks their best in every shot. This has the added advantage of reducing and even negating the need for editing, which in turn reduces the turnaround time for product delivery.

Secondly, hiring a professional makeup artist can save time and reduce stress for clients.

Getting ready for a photoshoot can be draining,

The Right Fit

It’s essential to get along with the people on your team, including your MUA. They’re not just someone you find on Instagram who seems like they can do the job. When adding an MUA to your team, here are some questions to consider:

• What does their portfolio look like?

• What are they capable of?

• How much experience do they have?

• Are they polite and friendly with other team members?

• Do they take direction well?

• Are they reliable and punctual?

• Can you trust them with your clients’ faces?

especially if they are not accustomed to having their photos taken. Having a makeup artist can help alleviate this stress by saving the client time and ensuring that they look and feel their best. The artist can also provide touch-ups throughout the shoot, which can ensure the look remains flawless. By taking care of the client’s makeup needs, the photographer can focus on

capturing great shots, resulting in a more efficient and enjoyable photoshoot experience for everyone involved.

Lastly, offering the services of a professional makeup artist can add value to the photographer’s services and set them apart from their competitors. This can lead to increased client satisfaction and word-of-mouth referrals, which can benefit the photographer in the long run.

NIA FORD is the owner of iblessfaces artistry based in Austin, TX. Her extensive knowledge of color theory, different skin types, and passion for customer service has made her a go-to for photographers seeking exceptional makeup artistry. Find her online @iblessfaces_artistry

WILL P WER

Estate

Full time, a law degree takes about three years to complete. But “full time” in law school isn’t a typical 40-hour work week. First-year law students read as many as 75 pages of case studies and precedents every single day, and the material only becomes more complex and specialized from there. It can be done in three years, technically, but they will be an intense, sometimes grueling three years.

Amy L. Jenkins did it in two and a half.

Oattorney Amy L. Jenkins has worked tirelessly to plan better outcomes for the families she serves. Now, it’s her business’s turn to thrive.

STORY TREM É NE TRIPLETT

What was her secret? What did she have when she entered law school at Texas A&M University at age 29 that others didn’t have? According to her, the only thing she had was a mission. “I went to law school to help people,” she says. “What I do makes a difference in the world, and I have a mission to educate people.”

Amy landed her first lawyer job at an insurance defense firm in 2002. As a litigant, her responsibilities included “courtroom crap” as she calls it: depositions, attorney vs. attorney, and other as-seen-on-tv drama.

Unsurprisingly, she was unhappy with that role. So what role would make her happy? How could she cut the courtroom crap and really get to the heart of her mission of helping and educating people?

It took her own family needing that help for her to find out.

Following Through

It all started when her beloved grandmother, “Nanny,” passed away. Amy thought probating the will herself would be the best way to help. But in doing so, she had a front row seat to the friction and dissension estate issues can elicit.

“My dad had four sisters — one of them predeceased Nanny,” Amy says. “She’d left it all equally, thinking it wouldn’t cause any strife. But there was still so much conflict among my dad and his sisters. I don’t think they ever overcame it.”

But through that experience, Amy had found her calling; she began devoting her practice to estate planning. “There’s a better way to prepare families on the planning side to minimize conflict, preserve relationships, and avoid pitfalls in probate court,” she says. “If I can help it, none of my clients will experience anything like what my family went through, or what you see on television.”

Amy sees 60 to 70 clients per year, generating an average of $350,000 in revenue while assisting families like hers in probate, asset protection, guardianship, and elder care. “Estate is just a hundred-dollar word for your stuff,” she says. “Your assets, your house, your kids— that’s your estate. Everyone has an estate, and we’ve just got to figure out what to do with it.”

In addition to her own practice, Amy puts in hours and does occasional pro bono work at Legal Aid where she provides ad litem services to protect the interests of a minor. Serious about her commitment to educating the public, she also conducts estate planning webinars, which are posted on her website. She is also passionate about the “Adulting 101” presentations that began in 2019. She conducts monthly seminars, better known as her “Wine and Wills” events.

On the third or fourth Thursday of each month, Amy hosts complimentary discussions about wills and probate trusts, utilizing the cases of

“There’s a better way to prepare families on the planning side to minimize conflict, preserve relationships, and avoid pitfalls in probate court. If I can help it, none of my clients will experience anything like what my family went through”

CAN’T PLAN FOR A MIRACLE

When Amy started practicing law, she and her husband, Duane, had been married for eight years. They had expected to be parents by then, but health challenges kept getting in the way. “It seemed like all of my friends had kids,” Amy recalls. “But we were firmly in the ‘no kids’ camp.”

As the couple prepared for a happy, childfree life, fortune finally smiled on them. “I got my first attorney job and then found out that I was expecting. I was like, ‘what?’” Amy says. It was difficult to believe; several positive pregnancy tests weren’t enough to convince them. “It wasn’t until my doctor confirmed it that we could finally believe it was true.”

The Jenkins’ first and only daughter, Ashley, was born in 2003. “I tell her all the time, she’s my favorite daughter,” Amy jokes.

As is the case with many women in the workplace, motherhood presented a whole new set of challenges and considerations. It was important to Amy to be present for Ashley, but early morning hearings and after-hour depositions caused her to miss seeing her daughter for days at a time.

“That was not going to work, not seeing my baby,” she says.

So, she stepped away from the firm and started doing contract work, taking other cases on the side. The Law Offices of Amy L. Jenkins, P.C., opened its doors in 2007.

Ashley was just 4 years old when her mom opened her practice. Today, 19-year-old “Ash” is a sophomore at Colorado State University. “We’re very close. A lot of people call her my ‘mini-me,’” Amy says. “I just love her.”.

GIRLS JUST WANNA HAVE FUNDS

Amy’s latest purchase with her “fun money” is a Louis Vuitton bag that both she and Venus had been admiring. “I loved it, and then I was obsessed with it,” Amy says, sipping from a Louis Vuitton tumbler. “Venus said, ‘This is what your profit account is for.’ It took a couple months, but I finally got it!”

well-documented celebrities and their outcomes on the issues. Add a little complimentary grape nectar, and Amy has created seminars that are very well received.

“We had 63 registrations, which is pretty good,” Amy says. “About 35 people showed up. It’s an hour of education and then Q&A. I just see it growing.”

Growth isn’t always easy, and the gravity of her firm’s services does not escape Amy. But she has developed ways to let work go and “find her happy.” “On a personal level, I usually try and find something funny to watch on TV,” she says. “I like British comedy. Sometimes I watch the same things over and over, like ‘Absolutely Fabulous.”’

A Helping Hand

With such a strong commitment to others, it’s only right that Amy receives a little help, too. She speaks highly of the help she gets from Venus Michael and One 21 AccountAbility. “We’ve been through two tax seasons together,” she says. “It has been very beneficial because when quarterly tax time comes around, I actually have money in the account to pay those taxes.”

That’s due in part to better bookkeeping, better planning, and — a One21 specialty — implementing Profit First. She loves having a sound partner to discuss strategies for reducing operating expenses or funding future staffing plans. But that’s not all she loves about it. “Profit First is kind

of magical in a way,” says Amy. “Venus said to me, ‘OK, it takes a minute to see the results, but just stick with it.’ [Now] we have this fun, little profit account. It gets to be my fun money.”

In addition to the business perks, Venus provides intangibles that Amy believes are invaluable to her success. “We have this whole one-hour call once a month, where it’s basically whatever I want to talk about,” Amy reflects. “At the end of it, every time she asks, ‘What can I do for you?’ And I’m like, ‘You’ve already done it.’”

Today, she’s dreaming of an absolutely fabulous future for her business. “In the next year, I’m hoping to offer a wills clinic to single mothers with minor

children. They need that peace of mind,” she says. “If something happens to them, it’s important for her to know what’s going to happen to the kids and how they’re going to get taken care of.”

Amy also sees a raise in her future. “Venus and I were talking about it, and she told

me, ‘You don’t pay yourself enough. You could get paid more if you went and flipped hamburgers.’ She was just straight up like that,” Amy says with a laugh. “But that’s Venus, and I wouldn’t change a thing. And yes, I’m going to give myself a raise.”

“At the end of [the call], every time she asks, ‘What can I do for you?’ And I’m like, ‘You’ve already done it.’”

PROFIT ABILITY CASH COURSE

New to Profit First? Consider this your introduction to your new favorite cash management technique.

Sometimes the most important business ideas are the simplest. Focus on leads, not sales. Don’t sell products, provide solutions. Start small, build big. As for profitability, you can sum up why that matters in just one word: Stability.

Being profitable means your company can continue to offer

its valuable services, even during challenging times. Being profitable means that you, your family, and your employees can maintain their lifestyle, come what may.

“The truth is, Profit First is a concept I wish I had when I began my career,” Venus says.

“But now that we’ve incorporated it into One21, and are sharing it

with my clients, I’m confident it can help all small businesses improve the overall health of their company. And be profitable. Because let’s be honest, in business we want to be profitable.”

WHAT IS PROFIT FIRST?

Profit First is a cash management technique that’s based on human behavior. In the titular book, author Mike Michalowicz describes both a philosophy and a system for building businesses in a sustainable way that creates long-term success. How? By flipping a universal rule on its head.

It starts with the GAAP, or Generally Accepted Accounting Principles formula, which is:

SALES – EXPENSES = PROFIT.

In this formula, profit is an end result — one that is not guaranteed, but is hopefully a nice surprise at the end of the year.

The Profit First formula is mathematically the same, but with one key difference:

SALES – PROFIT = EXPENSES.

Now when revenue comes into your company, you set aside a predetermined percentage of that revenue as profit. With profit as part of the equation, rather than the result, you can guarantee a profitable business every time.

It’s basically the envelope method for personal finance, applied to business. Profit First is designed to provide clarity around your cashflow, allowing you to make informed decisions

rather than emotional reactions or inaction. Once you realize that your profit should be allocated before distributing money to rent, utilities, overhead, and other bills, the rest is easy.

MINDSET RESET

We think of expenses as unavoidable—cost of material, for example. Rent, salaries, utilities, and so on seem equally intractable, at least in the short run. If we didn’t need to spend on something, we wouldn’t, right? Not really. In fact, as humans we naturally focus on things that come first, and when profit is at the end of the equation, we seek to increase it by increasing the front—the revenue. Reducing expenditure is something that simply doesn’t happen, and it may not seem feasible in growing business. The practice of setting aside a percentage of profit and spending only what remains is what makes Michalowicz’s concept work. Expenses actually can be avoided, eliminated, or budgeted for a later date. Doing that can be uncomfortable, of course. It may mean some spending for equipment or expansion doesn’t happen immediately. Sometimes, difficult decisions about people and positions must be made.

Despite those hurdles, and the current bigger-faster-now culture, Michalowicz says that a profit-first approach is actually growth-friendly. When you come across a unique opportunity that will add to revenue

Profit First is designed to provide clarity around your cashflow, allowing you to make informed decisions rather than emotional reactions or inaction.

Once you realize that your profit should be allocated before distributing money to rent, utilities, overhead, and other bills, the rest is easy.

PROFIT FIRST, IN A NUTSHELL:

• Before you pay expenses, pay yourself first.

• Run your business based on what you can afford to do today, not what you hope to be able to afford someday.

• When profit comes first, it is the focus, and it is never forgotten.

and profits to your business, you will have the resources to invest without endangering the current business.

BENEFITS FOR YOUR BUSINESS

Venus explains it this way: “If your company isn’t where you would like it to be and cash is not readily available, it is because you are not managing cash well. Small steps will get you to that goal. And that’s how Profit First works—with small steps.”

Most of the clients who come to One21AccountAbility typically have one, maybe two bank accounts for all of their finances. According to Venus, when you’re looking at one large lump sum in your bank

account, you’re much more likely to spend freely because everything feels like a small sum of the whole account. But if you separate all of your income to pre-determined allocations based on percentages, you force yourself to think more critically about your spending!

The book recommends setting up five foundation accounts to start, but if that feels overwheleming, start with two. Make a savings account in your existing bank and then allocate 1% of your income to that account. The logic here is if you bring $1,000 of income this week, you can certainly run your business off $990. Ten dollars seems arbitrary, right?

Then we move to 2% or 3%. You can run your business on $980 or $970. If you do that for a few months, and grow your profit account, the pain point feels nonexistent and yet you have an entire account that’s just profit. And suddenly, Profit First seems completely logical, and you’re ready for more foundation accounts, a.k.a. envelopes.

Your exact percentages will depend on your business structure, type of business, and current financial situation, but let’s use this example:

• 30% Owner’s Pay

• 10% Debt

• 35% Expenses

• 15% Tax

• 10% Profit

Twice a month, the money coming in is divided by the percentages you have calculated and allocated to its applicable account to be used only for its specific purpose.

“We’re so excited to be able to bring this idea to more and more small businesses, especially those facing challenges in the current economic climate,” says Venus. “It’s amazing the difference one small percent can make, even after the first quarter!”

The true and greatest benefit of the Profit First Method: the ability to create real, tangible improvements in your finances—both personally and professionally—on an ongoing, scalable, and sustainable basis.

Want to learn more about Profit First and how it could work for your business? Contact us today at one21accountability.com

Small steps will get you to that goal. And that’s how Profit First works… It’s amazing the difference one small percent can make, even after the first quarter!

Watching Your Wallet

I share my answers to real cash management questions from my clients.

Help! My spending is out of control.

I hear this all the time; you aren’t alone! Many clients feel like they never have money in the business — or worse, their accounts are overdrawn almost monthly. Fortunately, there is a way out if you are willing to put in the effort.

Start by completely separating business and personal expenses. No more using the business card for personal purchases and vice versa. From there, we can get a clearer picture of the money coming in and out for the year. Then we analyze the expenses and cut areas that were sucking profit. Not only will we know exactly how much profit the business made this year, we can also strategize about growing the business.

I have an expense that I need to track separately. Does Profit First let you open more than five accounts?

I have one client with 24 bank accounts, so I would say absolutely! In fact, my Profit First customized plan for photographers includes an additional three accounts to help them manage some of the unique costs of their industry.

My motto is, “when in doubt, open an account.” Is 24 too many? Maybe. But each has a clear purpose, and that client has a system for keeping track of it all. The beauty of Profit First is that it lets you customize it to suit your needs, so if you need a sixth, seventh, or 25th account, then go for it. Just make sure you fund the core accounts first. Don’t skip out on Owners Compensation or OpEx to fund these extra accounts.

What’s the

difference between a P&L and a balance sheet?

The Profit & Loss (P&L) report, also known as the income statement or statement of operations, summarizes the total income and expenses of a business over a specific time period. The goal of a P&L is to measure profit by subtracting expenses from income—a great indicator of the financial health of your business.

A balance sheet, on the other hand, states a business’s assets, liabilities, and owner’s equity at a specific point in time. This is a great snapshot of what your business owns and what it owes, as well as the amount invested by its owners, reported on a single day. A balance sheet tells you a business’s worth at a given time, so you can track how your financial situation changes in real time.

Venus Michael

The beauty of Profit First is that it lets you customize it to suit your needs, so if you need a sixth, seventh, or 25th account, then go for it.

Making Time

I read a lot of books, and I can honestly say that Profit First by Mike Michalowicz radically changed my life. And it comes down to these six words: “What we prioritize, we place first.”

At One21 AccountAbility, we see this in action every day. If we place profit as the last priority after revenue and expenses, expenses will always eat our profits. When expenses come first, there will always be another reason to spend (or “reinvest”) our revenue.

But the ideology applies to so

much more. For example, no one goes to the doctor, and upon being told they’re at risk for a heart attack, decides they’re going to put their health last. We would put our health first because there is a new sense of urgency and importance behind getting our health in order.

But what about the rest of your life? If you looked at your schedule—meetings, to-dos, must-attends, commitments— would that tell the same story?

Recently, during our annual

Profit First Mastery retreat, Mike said something that turned my life upside down: “What we prioritize, we place first. So, if that’s the case, the truth of who you are is in your calendar.”

That’s easy, I thought. Family is my number one. Work is second. Health is a close third.

Mike asked us to check our color-coded calendar, a management tool we began using, to easily identify the priorities in our life at a glance. Green represented meaningful work. Yellow was health. Blue was exploration. Gray was administrative. And pink was for family.

As I looked through my color-coded calendar, I saw a lot of green and gray. A little yellow. A speckle of blue here and there. But there was no pink.

My family, my number one, had no presence in my daily life.

The truth of who you are is in your calendar, and other life lessons from PF Mastery.

STORY VENUS MICHAEL

Sure, I text with my kids during the day and I go home to my husband at night. On weekends, there are family gatherings. And I know I went on vacation at some point. But none of that was on the calendar. And all of it was happening with whatever energy was left after all the greens and grays.

The biggest takeaway from Profit First Mastery had nothing to do with profit and everything to do with priority. Sure my business is profitable, and I love helping other businesses grow and thrive. But when my own life

needed a transformation, it was my Profit First Mastery group that came to the rescue. These men and women, these relationships, are transforming my life and business.

Rachel Siegel of Go Figure Accounting in Florida has become a treasured friend and mentor. Darren Cioffi of CBMS Consulting Services in New York is always challenging me to be a better version of myself. And Mike Michalowicz continues to inspire me in ways I never imagined.

The theme of this year’s retreat was transformation, and that’s exactly what happened.

I came back from Nashville renewed and empowered to create a calendar that truly reflects my priorities. I’m diligently color coding my to-dos, and making sure that every color is represented in a way that reflects my true self.

There’s still green and gray, but now I’m sure to weave in yellow and blue. And much like my logo and the colors you see branded in this magazine, there is so much more pink.