The Profit First Method: Strategies for Long-Term Success
How do you make profit a regular feature of your business—not just a one-off win? In this episode, I’m sharing the real-world steps to keep the Profit First system working for you, year after year.
I’m Deb Halliday, certified Profit First Professional, and I’ll show you why consistency is the secret to turning profit into a normal, sustainable part of your business. We’ll cover the importance of regularly reviewing and tweaking your allocation percentages as your business grows and changes, so your profit strategy always fits your current reality.
You’ll hear how automation can take the hassle out of monthly allocations—using tools like Xero, QuickBooks, and smart UK banks like Starling and Monzo—so you never have to worry about missing a transfer or dipping into the wrong pot. I’ll share stories from real business owners who’ve seen their profits grow by making small, regular adjustments and keeping their system simple.
We’ll also talk about using your profit as more than just a safety net. Think of it as your “opportunity fund”—ready to support growth, new equipment, marketing, or staff development, once you’ve paid yourself your profit bonus.
Whether your margins are tight or you’re looking for ways to grow, this episode will help you build a business that doesn’t just survive but truly thrives—by making profit an everyday habit.
Takeaways:
- Consistency is key: review and adjust your allocations regularly
- Automate your allocations for less stress and more discipline
- Use profit as an opportunity fund for growth and reinvestment
- Even small profit allocations can make a big difference over time
- Stay flexible and adapt your system as your business evolves
Links mentioned:
debhalliday.co.uk
Companies and resources featured:
Xero, QuickBooks, Starling, Monzo, HMRC
Transcript
Welcome to Profit first with Deb Halliday.
Speaker A:That's me.
Speaker A:I'm Deb.
Speaker A:I'm a Profit first professional and trainer, author of how to Build a Financially Healthy Business, founder of the Accounts Ladies, an award winning accountancy practice and the Accounts Office Training Academy.
Speaker A:This is the show for business owners who want to stop stressing over money, keep more cash, pay themselves more and build a business that truly thrives.
Speaker A:Just a quick note, Profit first is a licensed methodology.
Speaker A:Everything here is designed to help you implement it in your own business.
Speaker A:If you're interested in helping others with Profit First, I'll share how you can apply to become certified too.
Speaker A:Let's get started because your business should work for you, not the other way around.
Speaker A:Welcome back to Profit first with Deb Halladay.
Speaker A:I'm Deb Halliday, your certified Profit first professional and today we're focusing on how to sustain Profit first for long term success so that profitability becomes your new normal, not just a one off win.
Speaker A:You've already done the hard work of setting up your accounts, building your allocation routine and hopefully you've seen your first profit bonus come through.
Speaker A:But as with any system, the real results come from what you do consistently, not just what you do once.
Speaker A:So how do you keep the momentum going and make sure Profit first keeps working for you month after month, year after year?
Speaker A:Step 1 review and adjust regularly.
Speaker A:The first key is to review your allocation percentages quarterly.
Speaker A:Your business isn't static.
Speaker A:Revenue grows, expenses change and your own goals evolve.
Speaker A:As your income increases, look for opportunities to boost your profit and owners pay percentages, even if it's just by 1% at a time.
Speaker A:Small shifts make a big difference over time.
Speaker A:I worked with a Glasgow business owner who started out allocating just 1% to profit by reviewing her numbers every quarter and making small improvements like negotiating better rates with suppliers.
Speaker A:She gradually increased her profit allocation to 5% in a single year.
Speaker A:It was all about steady, intentional progress.
Speaker A:Step 2 Automate for consistency Next, make your profit first system as effortless as possible by automating it.
Speaker A:Use accounting tools like Xero or QuickBooks to track your allocations and set up standing orders for your tax and profit transfers.
Speaker A:Many UK banks such as Starling and Monzo let you create pots or spaces for different funds so your money is always in the right place at the right time.
Speaker A:Automation removes the temptation to skip a month and helps you stay compliant with HMRC.
Speaker A:Step 3 Plan for Growth and Reinvestment Profit first isn't just about saving.
Speaker A:It's about building a business that can grow and adapt.
Speaker A:Use your profit account as an opportunity fund.
Speaker A:After you've taken your profit bonus, you might decide to reinvest some of what's left into new equipment, marketing campaigns or staff development.
Speaker A:Just remember, always reward yourself first and keep an eye on rising costs like national insurance contributions or inflation, making adjustments as needed.
Speaker A:What if my industry has thin margins?
Speaker A:If you're in a sector where margins are tight, start small.
Speaker A:Even allocating 0.5% to profit is a powerful step.
Speaker A:It builds the habit and proves to yourself that profit is a priority.
Speaker A:Focus on cutting unnecessary expenses and finding efficiencies, because every pound you save is a pound you keep.
Speaker A:Over time, those small changes really do add up.
Speaker A:Remember, profit first isn't about being perfect.
Speaker A:There will be months when things feel tight or when you need to adjust your allocations.
Speaker A:That's normal.
Speaker A:What matters is that you keep prioritizing profit and building a business that supports your lifestyle and goals.
Speaker A:Here's your challenge for this week.
Speaker A:Review your allocations and see if you can increase your profit percentage by just 1%.
Speaker A:It's a simple move, but a powerful signal that you're committed to making profit a habit.
Speaker A:Thanks for tuning in to Profit first with me, Deb Halladay.
Speaker A:If you found today's episode helpful, please subscribe, leave a review and share it with another business owner who needs to hear this.
Speaker A:For more resources, courses and to connect with me, head to debhalladay.com and remember, when you put profit first, you build a business that reduces the stress while it supports your goals and dreams.
Speaker A:See you next time.
