• Cash Flow Mastery: The Profit First Method

  • Mar 19 2025
  • Length: 44 mins
  • Podcast

Cash Flow Mastery: The Profit First Method

  • Summary

  • Imagine running your natural products business without the constant financial anxiety that plagues so many entrepreneurs. What if cash flow wasn't a mystery, and paying yourself was non-negotiable instead of an afterthought? That's the promise of Profit First, and our guest Ron Saharyan breaks down exactly how this revolutionary system works.

    According to Ron, co-founder of Profit First Professionals, a staggering 83% of small businesses operate check-to-check, with owners often foregoing their own salaries just to keep the lights on. This creates a destructive cycle where entrepreneurs pour everything into their businesses while getting little in return. The Profit First methodology flips traditional financial thinking on its head by changing the formula from "Sales - Expenses = Profit" to "Sales - Profit = Expenses." This simple but profound shift ensures business owners pay themselves first and manage expenses within what remains.

    The beauty of the system lies in its simplicity and psychological effectiveness. Using separate bank accounts for different purposes—profit, owner's pay, taxes, and operating expenses—creates clear guardrails that prevent overspending. When revenue comes in, it's immediately allocated according to predetermined percentages, removing the temptation to spend money that should be set aside. Ron recommends starting with just 1% allocations and gradually increasing them, making the system accessible to businesses at any stage.

    For natural products businesses facing unique challenges around ingredient quality and educational marketing, Profit First provides the financial clarity needed to stay true to your mission while remaining sustainable. Instead of compromising on quality when margins get tight, you can make strategic decisions about pricing, positioning, and education that protect both your values and your bottom line.

    Ready to transform your relationship with your business finances? Start small with just one or two additional bank accounts and experience the immediate relief and empowerment that comes with taking control of your cash flow. Your natural products business—and your personal financial health—will thank you.

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    Email: info@naturalproductsmarketer.com

    About Amanda Ballard

    Amanda has worked in natural products marketing in the retail setting since 2016 and has a great understanding of the unique challenges and opportunities that retailers in this industry face. More than anything, she wants this industry to continue to boom and believes much of that success hinges on the ability of retailers to do well in their businesses and market their products effectively.

    About Tina Smith

    Since 2014, Tina has worked with multiple natural products businesses, discovering how to market their CBD products online, without having their payment processor shut them down, to letting customers talk about their health issues those products have helped them solve. She knows first hand how experts like you offer the best products and a superior customer experience, that is why she is committed to helping you find an easy way to grow your natural product business.

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