What is a profit blueprint?
A profit blueprint is a cash flow plan that gives you specific steps to get your business to a strong and healthy financial position. We first assess the current health of your business by analyzing your books. Next, we compare your current profitability to optimal profitability. Last, we give you a customized report with specific steps and a timeline to make you more profitable and healthy.
Why does every business need one?
Imagine trying to use a map to get you to your destination. But you have a couple of problems: (1) you don’t quite know where you are on the map, and (2) you aren’t quite sure where you are going. The Profit Blueprint will show you exactly where you are, and define a clear destination in regards to your business’ cash flow and profitability.
Beside showing you exactly where you are financially and clearly defining your target, the Profit Blueprint will also help you determine the following:
How much profit you should should keep from each sale
Exactly how much you should pay yourself
The rhythm in which to pay yourself
How much to set aside for taxes
How much to spend on business expenses
How much revenue does your business need to generate monthly?
By reverse-engineering the numbers in your Profit Blueprint, we can figure out exactly how much revenue your business needs to produce on a monthly basis to not only support your lifestyle, but also produce a consistent quarterly profit, sufficient tax reserves, and enough for the business to manage all of its expenses.
Slow and steady wins the race
Many business owners who read the book Profit First are tempted to immediately jump their current percentages to the targets that are recommended in the book. However, we need to adjust your percentages SLOWLY by making quarterly adjustments towards the targets. Otherwise, you will simply end up shuffling money around, and not running the system. Your chances for long-term successful implementation of the Profit First system will be greatly reduced. The Profit Blueprint will recommend percentage adjustments each quarter so that the transition will be smooth, and the chances for success much greater.
But what if my business is new, and not yet producing revenue?
A Profit Blueprint can still assist you by giving you a cash-flow model that you can test your business plan against.
If you can run your business with the percentages that’s in your plan, then you can be sure that your business will be profitable.
If the business plan can’t fit within your plans’ model, then it might be a good idea to either tweak your plan until it fits, or consider a different business before you waste a lot of your time and money.
Your Profit Blueprint can also be used in the financial analysis part of your business plan to demonstrate profitability. Proactively planning for permanent profitability will only increase your chances of business success.
To have a Profit Blueprint prepared for your business, schedule a consultation with Eric by using the following link, or emailing at eric@jtgtax.com.