I'm talking to you, the hardworking trades business owners in Australia, about a topic close to my heart - Profit First. Now, don't get me wrong, implementing Profit First can be a game-changer for your business. I've seen it happen. But I've also seen some common mistakes that can trip you up if you're trying to do it all by yourself.

Let's dive into these three biggies, shall we?

1. Misunderstanding Allocation Percentages

One of the first mistakes I've come across is when business owners misunderstand how to allocate their income into different accounts. Profit First isn't just about splitting your income as you feel like it into various bank accounts. It requires careful thought and understanding of your specific business.

When you misallocate, you can end up with too much money in one account and not enough in another. That means you could be staring at a giant tax bill without the funds to cover it. Ouch!

Solution: Spend time understanding your business's financial needs. If you're unsure, reach out to a Profit First Professional (like me!) who can guide you.

2. Skipping the Regular Reviews

Another pitfall? Skipping the regular reviews. Profit First isn't a "set it and forget it" method. Your business isn't static, and neither should your financial strategy be. I've seen businesses get into a jam because they set up their accounts, made their initial allocations, and then just let things coast.

Regular reviews are like oil changes for your car. If you skip them, things might be fine for a while, but eventually, you're headed for a breakdown.

Solution: Schedule monthly or at least quarterly reviews. This is a chance to reallocate, reassess, and make sure everything is running smoothly.

3. Going It Alone Without Proper Understanding

And here's the third big mistake: Thinking that reading a book or a couple of blog posts (even great ones like this) is enough to fully grasp the Profit First system.

Profit First is powerful, but it's not necessarily intuitive. It is different to what you have been told to do in the past. Trying to DIY without fully understanding the system can lead you down some pretty frustrating paths. It's like trying to build a house with a set of plans – sure, you've got the tools and a good idea, but without a plan will you get the house you actually should be building?

Solution: If you're serious about implementing Profit First, consider having a chat with a certified Profit First Professional.

Get the support you need early so that you not only save time and money but you will have Profit First set up correctly in your business sooner which means you will be benefiting from the advantage of Profit First far sooner that if you would have tried to do it yourself.

These are the three biggest mistakes I've seen trades business owners make when trying to implement Profit First themselves. 

Don't let these pitfalls hold you back and make matters worse.

Remember, implementing Profit First doesn't have to be overwhelming. Reach out, ask for help, and let's put your business on the path to success. 

Your profits are waiting!

BOOK A CALL with Katie HERE