If you have finally had enough of the constant cash flow struggle and you are ready to make a change, Profit First for Tradies will guide you. Katie Crismale- Marshall has taken the core concepts of Mike Michalowicz’s Profit First method and customised it to meet the specific needs of Australian tradies.

IN THIS PRACTICAL, EASY-TO-READ BOOK YOU WILL LEARN HOW TO:

• Check the foundations of your business to make sure they are rock solid
• Live the life you dreamed of when you first became self-employed
• Find profit in your business you didn’t know you had
• Recognise common mistakes so you can avoid them
• Organise your finances to make them actually useful to you
• Make a profit in your business from day one
• Find your financial rhythm and stick at it
• Set up Profit First without being overwhelmed

If you are ready to be a tradie who is permanently profitable, with money in the bank and all of your concerns and stress about cash flow overcome, this is the book for you.

Foreword By Mike Michalowicz 1

Introduction 5

‘I’m not sure my business will make it’ 5

Shocked but not surprised 6

She’ll be right 8

The missing piece 9

How do you get the most out of this book? 11

PART I: PROFIT

1. The core principles of Profit First 15

Understanding cash flow 17

So how do we enforce a rhythm? 18

The four core principles of Profit First 19

But if I set aside my profits, how will I grow? 25

The new accounting formula 26

2. Setting up your Profit First bank accounts 29

Setting up your accounts 29

Why the additional accounts? 33

Two ‘no-temptation’ accounts 33

3. Your allocated percentages 37

Real revenue 37

1. Instant assessment 38

2. Preparing for Profit First 39

3. The profit assessment 40

Two common problems 42

Current allocated percentages 44

Target allocated percentages 45

4. Finding funds in your business 51

Uncover the money that is already in your business 51

Understand and reduce debt 55

Review expenses 56

5. Eight common mistakes to avoid 59

Mistake #1: Going it alone 60

Mistake #2: Too much too soon 60

Mistake #3: Grow first (and profit later) 60

Mistake #4: Cutting the wrong costs 62

Mistake #5: ‘Plowing back’ and ‘reinvesting’ 63

Mistake #6: Raiding the tax account 64

Mistake #7: Adding complexity 66

Mistake #8: Skipping the bank accounts 67

PART II: PLAN

6. Setting goals 71

You’re not alone 71

Setting your goals 74

Keeping it simple 78

7. Assessing where you are now 83

Getting on track 83

How much do you need to live on? 86

8. Building your financial team 93

The players 93

You’re the boss 96

PART III: PREPARE

9. Getting the numbers right 101

Getting the foundations right 101

Your financial documentation 102

Bookkeeping basics 103

The benefits of automation 111

Quick and efficient quoting 113

Quick and efficient invoicing 117

‘Bloody bills’ 122

10. Getting the business management right 125

Managing your purchasing 125

Staffing and subbie success 127

Digital solutions 131

PART IV: PROSPER

11. Protect and plan 135

Protecting you and your family 135

Planning 138

12. Getting started with Profit First checklist 143

Where to from here? 147

Glossary of key terms 149