Getting Your Team On Board With Profit First

by | Mar 26, 2024 | Interior Design, Profit First | 0 comments

As the owner of an interior design business, financial decisions ultimately fall on you. The decision to start using Profit First for your business has probably come through much research and planning on your part, and now the implementation has to begin. It’s easy to get caught up in all the details, like figuring out which bank accounts you need and setting your allocation percentages – and while those details are definitely important, you may not get very far without support and encouragement along the way.

Even if you run your own business, there’s a good chance there are other people who help you carry the load – whether you share that with a spouse, business partner, office manager, or bookkeeper, there are certain stakeholders that need to know when financial changes are being made.

Explaining Profit First to your team:

Share your enthusiasm 

This conversation with your team doesn’t have to be stressful or negative – Profit First is a great change for your business, so it should be exciting news! Explain to your team that Profit First is a method of cash management that will help your company get on track and stay on track with its financial goals. No more wishing to make a profit for your interior design company “one day” – this method will provide tangible results that will aid in sustainable financial growth for years to come. 

Be honest 

While Profit First is an exciting change for your interior design company’s bookkeeping and financial goals, there are some people in your business who may feel a strain from this new system.

Rather than making it all sunshine and rainbows, be honest about what kind of spending cuts will need to be made, and why they’re being made. There’s nothing worse for an office manager or marketing department than to get a budget cut without understanding why. If you can educate your team about the necessity of spending less in some areas in order to make a profit and have long term success, they are more likely to get on board with the new plan. In other words, getting your team’s buy-in for this new method will make the changes easier to bear. 

Implementing Profit First with your team:

Most business owners and managers are used to the stress of trying to stay within a formal budget. The beauty of Profit First is that it serves as a built-in budget with predetermined guardrails on spending. Rather than one large bank account to pull from, your company will have a bank account for each major spending area, which means your team will have more clarity about what they can and cannot spend. It is an adjustment for a team to see that they may have less to spend than they’re accustomed to, but that’s why implementing Profit First collaboratively is so important. Having more spending freedom is nice initially, but causes budgeting stress in the long run. Having less to spend may be frustrating, but in the long run it will help your team plan more wisely and make spending decisions with more clarity.

As you implement Profit First in your interior design business, don’t forget to continue communicating with your team! Celebrate the wins and share the struggles you’re experiencing in the process. When a significant shift like this happens in a company, it’s important to over-communicate rather than assume everyone is on the same page – the more your team understands about your goals and intentions with Profit First, the more they will be able to support you and see the transformation that Profit First creates.

Whether you’re implementing Profit First on your own or with a team, we’d love to chat about how we can provide support!

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Lori Peterson

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Lori Petersen

Lori Petersen has seen the frustration and loss that business owners experience when they don’t have command of their finances. Growing up, she watched her father work incredibly hard as a contractor. He’d come home late, eat the dinner kept warm in the oven, and do it all over again the next day. But it all came crashing down when he had to close the business and Lori’s family applied for food stamps. The business had failed and all of his hard work was for nothing. 

Today, Lori views every one of her clients as an opportunity to make this right. She firmly believes no one should work as hard as her dad did and not have a profitable business. No family should suffer because business finances were poorly managed. 

Lori has helped hundreds of business owners make sense of their finances, implement proven money management systems and create unimagined profitability for their business. She ensures they experience the return they deserve for their hard labor.

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