Welcome to a journey of financial empowerment, where the decisions we make today unlock a future of growth, freedom, and success. As a seasoned bookkeeper, business coach, and mother, I understand the balancing act that many business owners endure. It’s easy to fall into the trap of prioritising everyone and everything above your own financial wellbeing. However, there’s a powerful change you can start today that will help you reclaim control over your finances and your business: the 1% shift.
### Embracing Profit First
The concept of Profit First is simple yet revolutionary. You create a separate profit account, into which you deposit a small percentage of your revenue right off the top. This isn’t for paying bills, nor is it for taxes—it’s a reward for your hard work and dedication. What I’m advocating for is a manageable step: start with just 1% of your revenue. This concept shifts not just your financial reality but also your mindset, making you the kind of business owner who consistently pays themselves first.
### Understanding Reactive Money Habits
Many entrepreneurs operate in a reactive financial state, constantly waiting until the end of the month to see what’s left. This often leads to the reinvestment of every dollar back into the business, with the hope that more revenue will solve ongoing problems. But the cycle persists, because without a structured approach, our financial goals remain elusive.
### Identity Shift: From Hustler to Empowered Owner
Consider the story of my client Megan. She was earning $6,000 a month yet felt perpetually broke. By adopting the 1% shift, she went from handling her finances reactively to directing them intentionally. Ultimately, this small, consistent action changed her identity from a struggling freelancer to a confident business owner. Just $60, which she could afford to set aside each month, marked the beginning of this significant transformation.
### Personalising the Approach
I don’t just teach this—it’s a principle I live by. By creating a profit account both in my business and personal finances, my husband and I have found freedom from financial guilt. We’ve each established a personal account where 1% of our household income is allocated. This money is our permission slip for joy, fun, and personal satisfaction.
### Small Decisions, Big Changes
Building a strong financial system isn’t about making one grand decision. It’s about tiny, repeated decisions that, over time, change the landscape of your financial life. Every invoice, whether $200 or $20,000, follows the same process: transfer 1% to your profit account. This builds both discipline and the identity of a financially savvy entrepreneur.
### Implementing Your Own 1% Shift
Let me guide you through this step-by-step. Open a separate bank account for your profit. Transfer 1% of your revenue regularly, be it weekly or monthly, to build a rhythm that works for you. If you earn $4,000 monthly, for instance, start by setting aside $40—an amount you likely spend without much thought.
### The Benefits of a Quarterly Profit Distribution
Every 90 days, reward yourself by allocating 50% of your profit account balance directly to you. Use this for personal enjoyment, debt reduction, or as an emergency fund. The remaining 50% stays put, creating long-term stability or growth opportunities.
### Your Challenge
I challenge you to adopt the 1% shift. Start small, but start now. Celebrate the freedom this brings and watch as it fundamentally alters your relationship with money. If you embrace this change, reach out to me on Instagram or drop me a message. I’d love to celebrate your financial milestones with you.
This isn’t just about a financial tactic; it’s an empowering decision that honours your hard work and dedication. Keep putting money first—you’ll find that the rest of your dreams will follow.
If you found value in this approach, share it with fellow business owners. Together, we can foster a community of financially empowered entrepreneurs. Until next time, guide your finances with intention and watch your success unfold.
