Why Profit First? (Spoiler: It can change your finances!)

Profit First Club Newsletter – Launch Edition

Hi everyone, welcome to the inaugural edition of the Profit First Club Newsletter! I’m Steven Edwards from Gro Profit First Accountants, and I couldn’t be more excited to launch this new chapter for 2025. This year, we’re introducing a fresh format: the newsletter you know and love will now double as a podcast. Why the change? We know people consume information in different ways—some love to read, others prefer to listen, and many enjoy watching videos. By expanding our reach, we aim to provide even more value, no matter how you prefer to engage with us.

How to consume the newsletter/podcast?

Read it here - 5 mins

Watch it - 10 mins

Listen to it - 10 mins - HERE

Why This Change?

Our goal has always been to deliver value to you, and this change is part of that mission. As the UK’s leading Profit First accountants, we’ve helped countless business owners transform their finances and take control of their profitability. Instead of just talking theory, I want to share practical, real-life examples of how Profit First works. We’ll showcase the strategies we’ve used with our clients, from the challenges they faced to the success they’ve achieved. This will give you insights you can apply to your own business—all for free.

What Is Profit First?

If you’re new to Profit First, let me break it down for you. It’s a system that shifts the way we think about business finances. Traditional accounting follows this formula: Sales – Expenses = Profit. In this model, profit is what’s left at the end—and for many businesses, that’s often not much. Profit First flips the script: Sales – Profit = Expenses. By taking your profit first, you force your business to operate within its means. It’s a system that prioritises your financial health and ensures you’re building a sustainable, profitable business.

Why Profit First Works

The success of Profit First is rooted in Parkinson’s Law, which states that work (or spending) expands to fill the resources available. The same applies to money—when you see a big number in your bank account, it’s easy to think you’ve got plenty. Let’s say you log in to your business bank account and see £50,000. You feel confident. But when you break it down—£20,000 for VAT, £20,000 for taxes, and £10,000 for operating expenses—you realise you don’t have nearly as much as you thought. Profit First solves this by dividing your income into specific “pots” for profit, taxes, operating expenses, and more. By managing your cash flow in this way, you’re forced to be more resourceful, prudent, and creative with the money you have.

Who Is Profit First For?

Profit First isn’t just for small businesses; it’s for businesses of all sizes. I’ve worked with companies turning over millions of pounds that were still struggling to make ends meet. Take one client I met last year, for example. Their business was generating £8 million in revenue but barely making £100,000 in profit. For a business of that size, that’s simply not enough. The lack of profitability isn’t just a small business problem—it affects organisations at every level. But here’s the good news: Profit First works.

Real-Life Success Stories

To show you just how impactful Profit First can be, I’ll be sharing real-life stories in this newsletter and on the podcast. One example is Nathan. When he joined our Profit First programme three years ago, he was on the verge of giving up his business after nearly 10 years of operation. He struggled with cash flow, VAT, and taxes, and felt like no matter what he did, he couldn’t get ahead. Fast forward to today: Nathan has tripled his profit, reduced his time working in the business, and completely transformed his financial situation. His story is a testament to how powerful the Profit First system can be. Next week, I’ll dive deeper into Nathan’s journey and share insights from another client—a local coffee shop owner—who managed to double their profits while stepping back from the daily grind.

Our Profit First Journey

Profit First isn’t just something we teach—it’s something we practice. At Gro Profit First Accountants, we implemented the system in our own business five years ago. In just two and a half years, we saw a 70% increase in profit. The best part? Our turnover grew during that time, but not at the same rate as our profit. What changed was that we started keeping more of every pound that came into the business. This isn’t just theory; it’s a proven system that works, and I’m passionate about helping more businesses achieve the same results.

Next Steps

If you’ve ever struggled to pay VAT, taxes, or wages, or if you feel like you’re not paying yourself what you deserve, Profit First could be the solution you need. It’s a blueprint that works for businesses across the UK and around the world. Start by reading the Profit First book by Mike Michalowicz, or listen to the audiobook. You can also find Mike’s presentations on YouTube, which offer a fantastic introduction to the methodology.

What’s Next in the Newsletter

In the coming weeks, I’ll be sharing real-life client stories to inspire you, practical strategies for implementing Profit First, and insights into common challenges and how to overcome them. If there’s anything specific you’d like me to cover—whether it’s Profit First, accounting, or tax—just drop me a message. Thanks for being part of the Profit First Club. Here’s to making 2025 your most profitable year yet

Free Proactive Profit First Accounting Meeting

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Book a Call To See How CTA Can Help You and Your Business

Want some help?

3 Ways I can help you.

1. If you are not a client then you can book a call HERE so we can learn more about your business.

2. If you are a client and we don’t already help you with Profit First, email me via stephen@cheltenhamtaxaccountants.co.uk to arrange a chat about the Profit First System and how it can increase your cash balance and profits (guaranteed)

3. Get some tax tips from my TikTok HERE