Profit First, Not Last: How the Profit First System Can Transform Your Business Finances

Savvy or Surrender - The Main Street Business Owners Guide to Maximizing Profit and Minimizing Taxes

Episode 5: How the Profit First System Can Transform Your Business Finances

Are you generating six or even seven figures in your business but still feeling broke? In this episode of the Savvy or Surrender Podcast, host Stephen Young, a certified Profit First Professional, dives into the Profit First System by Mike Michalowicz — a proven framework that helps business owners take control of their cash flow, pay themselves consistently, and build lasting profitability.

Stephen breaks down how simple percentage-based allocations can eliminate the “feast or famine” cycle, sharing a real-life story of a roofing client who went from chaos to clarity by following Profit First principles. Learn how to create separate accounts, control marketing budgets, and build financial clarity — all while ensuring your business truly serves you.

Sponsored by: SavvyCEOAlliance.com — Join a free community for business owners learning profit-first principles, tax strategies, and marketing systems that create long-term success.

Show Notes & Timestamps

00:00 – 00:08 | The Financial Struggle of Success
Stephen opens with the question every entrepreneur has asked: Why am I making six or seven figures and still broke?

00:08 – 00:31 | Introduction to Profit First
Learn about the Profit First System by Mike Michalowicz — a book that helps business owners prioritize profit and pay themselves first.

00:36 – 00:43 | Welcome to the Savvy or Surrender Podcast
Host Stephen Young introduces Episode 4.

00:43 – 01:09 | Sponsor: Savvy CEO Alliance
Discover SavvyCEOAlliance.com — a free business community offering workshops, trainings, and insights on profitability, taxes, and marketing.

01:21 – 02:09 | Case Study: The Roofing Client
Stephen shares how one roofing client went from “chaos to clarity,” struggling with overspending on marketing despite strong profits.

02:09 – 02:47 | How Profit First Solves Overspending
Learn how the Profit First method can create clarity with expense management by allocating specific funds for categories like marketing.

02:47 – 03:15 | Practical Example: The 5% Rule
Stephen explains how setting aside 5% of revenue for marketing builds discipline and control, preventing unexpected cash shortages.

03:15 – 03:39 | Real-Time Budgeting Example
He walks through a monthly allocation example, showing how to adjust ad budgets based on actual available cash.

03:39 – 04:18 | Long-Term Budgeting and Consistency
Stephen discusses how tracking 12 months of averages allows business owners to plan consistent, predictable spending.

04:20 – 04:52 | Helping Clients Find Clarity
Learn how Profit First principles helped a roofing client transform their financial outlook and gain full clarity on ad spending.

04:52 – 05:11 | Closing Thoughts & Feedback Invitation
Stephen encourages listeners to like, subscribe, and email feedback at [email protected] to help improve future episodes.

05:11 – 05:17 | Final Message
Stephen wraps up with a reminder to “stay savvy and never surrender.”

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