3 Ways to Save Time With The Truly Profit Plan
We know the one resource that we cannot generate more of is time. It is so precious and as a business owner, we know how difficult it can be to come by. This is largely why I worked so hard to develop a plan that didn’t involve loads of my own time to implement and maintain.
This is where the Truly Profit Plan comes in. When I started researching different cash flow management strategies, many provided vague theories on how to build systems for your business but they lacked specific steps. Knowing I needed a plan that saved me time, I decided to build my own plan. Which led me to the Truly Profit Plan.
If you have yet to learn about the Truly Profit Plan, I recommend starting with some of our more popular blog articles here.
Once you have an understanding of how the Truly Profit Plan works, you have probably already started to develop an idea of how it can save you time. In the following article, we will specifically lay out 3 ways the Truly Profit Plan is saving business owners time in implementing the plan and maintaining the plan.
1. Straightforward Setup
The first step in implementing the Truly Profit Plan is to actually set up the processes needed for the plan. Typically this will involve a bit of goal setting and decision making on the part of the business owner.
- You will need to consider how much profit is appropriate for your type of business?
- How much income do you want to make from your business?
- How do you plan on managing your expenses?
Once you have considered these questions, you can move forward with deciding on what buckets will make up each percentage. In our Truly Profit Plan Course we make some suggestions on what buckets and percentages we suggest but there is of course room for adjustments if you find it necessary.
Then with each bucket you will need to open up a corresponding bank account. This is recommended to maintain easy oversight over your various budgeted amounts but there are some workarounds if this is not a viable option.
Once you have your buckets, corresponding percentages, and bank accounts set up, you are ready to begin implementing the Truly Profit Plan Regularly. This should have taken relatively little time and is largely dependent on goals you may already have established.
2. Easy to Maintain
The second way the Truly Profit Plan helps you save time is in how easy it is for you to maintain. The whole reason the plan is so popular is because it can easily scale depending on what stage your business is at. The same cannot be said for plenty of other cash flow management strategies.
While the process may differ slightly from one business to the next, the idea is fairly the same. Every week you will assess how much income the business generated. Then you will transfer the appropriate amounts into the corresponding bank accounts.
You are free to then transfer the owners income into your personal account, transfer profit and tax into their appropriate savings accounts and spend the money in your OPEX account.
Once the transfers are complete you are free to return to running your business. This process can scale easily from a few transactions a week, to cashing in on large paychecks.
Compare this to management strategies that may need to adjust as your income does or forecast cash flow depending on current earnings. It’s time consuming and inefficient, which is exactly what the Truly Profit Plan eliminates.
3. Simple to Pinpoint Challenges
While the Truly Profit Plan does solve many issues in accounting processes, businesses can still encounter financial challenges. While something that does need to be managed, under this plan you can more easily pinpoint what is causing this problem.
For example, if you are quickly depleting your expense account you can easily review what expenses are being made without having to consider whether profits, owners pay, or taxes are the issue. You can quickly move forward in determining whether it is a pricing issue or an expense issue.
We understand business owners do not have flexibility when it comes to their time and ability to manage their accounting closely. Which is why it is so important to establish accounting processes that work for your business. When you create efficient processes, you are able to maintain proper oversight without having to keep too close of an eye on every transaction.
To learn more about the Truly Profit Plan and begin implementing it for your business, consider our course. With our online course you can begin utilizing the plan for your business as soon as your bank accounts are set up!
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