How to Make More Income With The Truly Profit Plan
A common goal for a business owner is to increase their income. Whether they aspire to increase their personal paycheck, business income, or profit margin, we are all looking for ways to do things more efficiently.
There are also plenty of theories online as to how you can do this…decrease expenses, advertise more, or improve processes. However, much of this advice does not tell you specifically how to accomplish any of these strategies.
Which is why the Truly Profit Plan is so popular with our clients. With this plan you get specific tips and advice on how to accomplish some of your biggest business goals, like increase your income.
What is The Truly Profit Plan?
The Truly Profit Plan is all based on the ideas that we prioritize profit first. Often times when it comes to managing cash flow or paying ourselves an income, we start with revenue and subtract expenses. What you have leftover is profit. So it looks like this:
Revenue – Expenses = Profit
What we propose is you flip it:
Revenue – Profit- Taxes- Owner’s Pay= Expenses
By doing so you are prioritizing your profit so it is always there. You are then left with a budgeted amount you can spend on your expenses.
Why Does This Work?
If one of your goals is to increase your income, then the Truly Profit Plan can help make that happen. It works because it puts an emphasis on your goal, to increase your income. Once you make that a priority the other pieces fall into place.
Once you remove profit from your revenue, you are then guided to divide your remaining revenue into certain buckets. Each bucket has a predetermined amount. So for every dollar you earn, you know exactly where each penny is going.
This works because you can actually calculate and determine what you need to sell in order for you and your business to make more income. This differs from many other strategies out there because the Truly Profit Plan provides you with specific steps to take in order to make more income.
More Personal Income Too
Profit is not the only focus of the Truly Profit Plan. Owner’s income is also considered when determining how to divvy up your income. By making owner’s pay a priority you can more reliably determine how much income you will make with each sale.
Under the Truly Profit Plan you will also find a specifically laid out strategy for how to generate owner’s income even during slower seasons. By creating reliable income, this creates security normally found working as an employee.
Once you have that stable income you can also consider the benefits of setting aside some income for taxes as well. Under the Truly Profit Plan it is recommended one of your buckets be “taxes”. By intentionally setting aside a percentage of your income you will no longer have to dip into income you already brought home.
Creating this tax reserve allows you to bring more money home and have a better understanding of what your tax expense will be come tax time.
Implementing The Truly Profit Plan
The best part about the Truly Profit Plan is that it can be implemented into any business. No matter your size, industry, or seasonality of your business, the Truly Profit Plan is flexible enough to fit your needs.
Oftentimes this is why it is so successful. Many cash flow management strategies sometimes fail to consider the goals of the business owner or rely on consistent / foreseeable income. The Truly Profit Plan can easily flex to meet the current demands of your business, allowing you to quickly follow the plan with little fuss.
If you are looking to take the next step in implementing the Truly Profit Plan, we invite you to take our course.
In the Truly Profit Plan Course you will be guided with specific steps on how to build your accounting processes around this plan. No theories or vague strategies, just guidance on what to do next.
This is at the heart of why we believe the Truly Profit Plan is so helpful. It’s specific in that any business owner with any background can implement the plan into their business. No matter whether you sell services or products, in store or online, this plan can work for your business.
To get started on implementing the Truly Profit Plan, click the button below: