The Profit First method is built for business sustainability. Rather than being shocked at how little money your business made at the end of the year, you can actively plan for the profit you desire by keeping your expenses under control.
Profit First is designed for long-term financial success by shifting your mentality from running your business passively to actively taking control of its destiny.
The basic principle is this: you account for your profit, taxes, and income first. Then, whatever figure is left is your budget for expenses.
The idea is not to see your expenses as this gloomy cloud hovering over your business. Instead, you can work with the budget you have and create a strategy that helps your company operate smoothly within that budget.
By doing so, you can know ahead of time which expenses are likely to go out, but more importantly, you can change the expenses, depending on your projections and needs. In fact, expenses are flexible. You can make things cheaper, more efficient, or eliminate them altogether.
Indeed, you can't alter your expenses once you have already paid them out, and once they chew out most of your income. By planning your expenses, you gain more control over your financial performance, and that's the aim of the game!