I cannot tell you how much it matters to be able to pay yourself consistently, even if it's small at first, because it changes how you see your business. It shifts your mindset from, I'm just trying to make money to. I'm building something that supports my life. And once I had a system in place, I could pay myself and invest in the business without feeling like I was gambling.

Hey friend. Welcome back to In The EllaMents. I am Alishia Egenhoff, Digital Ads strategist, mentor, and the Heart Behind Social Elements Marketing. Around here, we talk about marketing. Motherhood and what it really looks like to build a business while also being a human with limited time, energy, and capacity.

And today, we are talking about something that might not sound exciting at first, but I truly believe it affects almost everything in your business. Your numbers, because here's the thing, the success of your business really does depend on how you manage your numbers. And this is not in a be obsessed with spreadsheets way, not in a you need to track everything perfectly way, but in a real-life way.

Like, if you don't know what you can afford, everything becomes a guessing game. You guess if you can invest, if you can hire help, if you can take time off, if you can run ads, and if you can even pay yourself. And when business turns into one giant guessing game, it's stressful. So today I want to share a system I implemented really early on, and I honestly believe it's been a big part of why my business has stayed stable and sustainable.

It's called Profit First, and you may have heard of it, but I do wanna say this upfront. I am not a financial advisor. I am not an accountant, and I'm not here to tell you what you need to do with your money. This is simply my real-life lived experience using a framework that's helped and worked really well for me, and also from a marketing perspective.

It's allowed me to make business decisions with confidence. Because marketing decisions are also financial decisions, and if your numbers feel messy, marketing will always feel harder than it needs to be. So if tax season is creeping up on you and you're feeling that familiar attention, or if you're making good money, but still feel like you don't know where the heck it's going.

Or if you want to feel more confident making decisions in your business, this episode is for you. Okay, let's get into it. Let's start here. If you are someone who avoids your numbers, you are not alone. A lot of business owners fall into one of two camps. Either they ignore their numbers because it's overwhelming, or they obsess over them because it feels like they're in some sort of control. And honestly, I relate to both depending on the season that I'm in, because numbers come with emotions. Numbers can trigger fear, shame, pressure, or this voice in your head that says I should have it together by now. And if you are a millennial business owner or a woman, I think a lot of us grew up with this weird mix of messages around money.

Like, work hard, and you'll be fine. Don't talk about money. Be grateful for what you get. You're lucky to have a job. Don't be too expensive. And then we start businesses. And suddenly, we're expected to confidently price ourselves, pay ourselves, save for taxes, run a business bank account, market ourselves, and make strategic decisions with almost no one ever teaching us how.

So if your numbers feel stressful, I just want to normalize that. But I also want to say this: avoiding your numbers doesn't protect you. It just delays decisions until they become urgent. And this is where Profit First changed things for me because it took the emotional weight off of figuring it out every month, and it gave me a system to work from.

So, to give you some backstory and why this matters. Profit First didn't come out of nowhere for me. My husband and I did the full Dave Ramsey course, if you're familiar, uh, back in, I wanna say 2018 ish. And if you've ever done anything, Dave Ramsey, you know, it's intense.

We don't follow it super rigidly anymore, even though, honestly, we probably should. But at the time, it was a really big eye-opener for us because it wasn't just tips, it was a framework or a process. It helped us get out of student loan debt and credit card debt that had been built up over time. And it gave us a system that made us feel like we were making smarter, more aligned decisions with our personal finances.

And I think that's why Profit First resonated so much with me. Because Profit First is basically that same idea, but for your business, instead of hoping there's money left over, you create a structure and system where there is, and when you have structure, you can breathe. When I started Social EllaMents, I had already heard of Profit First, and I remember thinking, okay, that actually makes sense.

But I'll be honest, I didn't fully implement it on day one. I couldn't because if you've listened to my story, you know, when I started my business, we were in a really tender season. We were living off my retirement that I withdrew from my corporate job, and we needed every penny to make it through. So I think I waited until I had a little bit of stability.

I wanna say it was around signing my second client, and then I implemented it fully, and I've actually followed it pretty rigidly ever since. And yes, I do think it has been a big part of my success. And that's more like in a, I'm grateful that I did it way, not like in a braggy way. I think it's just helped me create systems and structures around finances that have helped me make better-aligned decisions for my business.

Okay, so let's break this down in a way that isn't confusing. Profit First is a cash management system created by Mike Michalowicz. I think that's how you say it. The core concept is simple. Instead of paying your expenses first and hoping profit is left over, like most business models are, you actually take profit first.

So you treat profit like a priority, not a reward after everything else is paid for. In most businesses, if we don't plan for profit, it disappears. And you may be in this spot right now. And I want you to think about it like this. If money sits in one bucket, it's easy to spend it. Because you look at your bank account and think, oh good, I have money.

But that bank account is lying to you because it's not separating what's actually available from what isn't. Your taxes aren't separated. Your own pay isn't separated. Any extra profits aren't separated, and your expenses aren't separated. So Profit First basically creates separate buckets for different purposes, usually through separate bank accounts.

So when money comes in, it gets distributed into categories. That way, you know what you can actually spend, and you know what is set aside for your taxes. You can pay yourself, and you know that there's profit within your business because you can literally see it. And for me, the biggest gift of profit first has been this.

It removes that constant mental math. And if you're a mom, you already have enough mental math, so why add more to it? So there are two moments that make me fully committed to this system. Number one was paying myself consistently.

I cannot tell you how much it matters to be able to pay yourself consistently, even if it's small at first, because it changes how you see your business. It shifts your mindset from, I'm just trying to make money to. I'm building something that supports my life. And once I had a system in place, I could pay myself and invest in the business without feeling like I was gambling.

And this is where it ties into marketing as well, because marketing costs money. And when you don't know what you can afford, marketing feels risky. But when your numbers are organized, marketing becomes a decision, not something you do out of panic.

Number two, tax season has not been terrifying for me. This is the other big one. Every year, when tax season rolls around, I have yet to be in a position where I didn't have the funds to pay my taxes.

And not only that, but I've also had the funds to pay someone to do them for me, and that is the absolute dream because I hate doing taxes. So that alone is worth the system because nothing will mess with your nervous system, like realizing you owe taxes that you didn't plan for. So Profit First gave me that piece, and that piece has also helped me create better decisions.

Before we wrap up, I want to slow this down and kind of go back to the foundations of it to make it really practical, not overwhelming, just practical, because I know some of you are listening, thinking. Okay, Alishia, I get why this matters, but how do I actually start? So let's walk through a very simple Profit First starter setup.

Nothing complicated, nothing overwhelming. This is not about doing it perfectly. It's about creating a structure that you can grow into. And again, I'm not a financial advisor or an accountant, but this is just. Where I started and where I've seen some success, and I think it's a good opportunity for you.

So step one, start with fewer accounts than you think you need. When people hear profit first, they often tend to picture like a dozen bank accounts, and they immediately shut down. I've actually had business owners like, isn't that the thing with like a million bank accounts? Okay, you do not need that to begin.

To start, I recommend just four accounts. Your income account, your owner pay account, your tax account, and your operating expenses. That's it. Your income account is just a holding account. Money comes in, and it doesn't stay there for long. The goal is that money doesn't sit there tempting you to spend it.

Step two: decide on very realistic percentages. This is where people tend to overthink, so let's keep it very grounded. These percentages are not forever numbers. They're a place to start. And the book dives into this a little bit more, but for early-stage business owners, something like this could work for you.

Your owner's pay is 30 to 40% of your income. Your taxes are 20 to 25%. Your operating expenses are whatever's left from that, and you don't have to do it right away, but you can even allocate a one to 5% to start a profit account.

And that will go into more detail in the book on what that account does. But that's been one of my favorite parts of the system because it's like a built-in bonus system for you.

And that, for me personally, that bonus system has helped me do things that I want to do with my family, like vacations. So, just a fun little tidbit, but I do wanna say this, clearly, starting small is not a failure, it's a strategy. So start where you need to, and where you start is just training yourself into a system and getting into that rhythm.

Step three: allocate money on a consistent schedule. This is one of my favorite parts of profit. First, you're not constantly touching your money. You're not reacting every time income comes in. Instead, you choose allocation days or like paydays, for example. So that could look like. You pay yourself twice a month, once a week, or once a month if things are really simple for you.

I personally do it twice a month. And then what happens on allocation day is you move money out of your income and into the other accounts based on the percentages that you set up in step two, and then you get to stop thinking about it. That's the magic, because once money is allocated, you know exactly what you can spend.

You know what's off limits, and you got paid without guessing. Okay? Step four, let your operating expenses account tell you the truth. This part can feel uncomfortable, but it's powerful. Your operating expenses account becomes a built-in boundary. If the money isn't there, the decision is already made. So that might mean that you need to consider adjusting your expenses, maybe raising your prices, maybe slowing spending, or saying no to something that doesn't fit.

And the system isn't about punishing you. It's about protecting you. And it's showing you what your business can actually support right now, not what you hope it can, and that's the beauty of it. So it makes those decision-making situations much easier for you. Okay, step five, revisit and adjust as you grow.

Nothing about this setup is permanent, like it's not written in stone. As your business grows, as things change, you can adjust your percentages, and your accounts can evolve to where you have more accounts. Maybe you start a retirement account, your profit can increase, and your personal pay can increase. And that's the beauty of it, the system gets to grow with you as your business grows.

And that's what I love about it so much, because it's not rigid, it's responsive. So I wanna talk about why this matters, especially for somebody who works with business owners from a marketing perspective. Let's bring this back to what I actually see every day. When business owners don't have systems like this, marketing feels risky to them.

Spending feels very emotional, and decisions feel very heavy. But when your money is structured, marketing becomes intentional. Investments feel thoughtful, and growth feels steadier. You are not asking, can I afford this from a place of fear. You're asking it from a place of clarity, and that changes everything, every decision you make in your business.

Now I want this episode to be useful, not just a story about my business. So here are a few key takeaways you can walk away with, whether you implement Profit First exactly or not.

So take away number one, at the very least, separate your money even if you don't do the full profit first. Start here by separating your taxes, separating your owner pay, and separating your operating expenses. Because when money is separated, you stop accidentally spending what you don't actually have.

You don't need 12 accounts to start. You can literally start with two or three. And if you're thinking that still feels like a lot, I get it, but I promise you the simplicity comes after the setup. And a lot of banks make it super easy nowadays to set up new accounts. So definitely give it a shot, take away.

Number two, profit is not what's left over. Profit is what you prioritize. If you are always waiting to see what's left after you pay everything else and everyone else, there will not be anything left. So even if you start with a tiny percentage, you are building that muscle. And I want to say this very gently, if you feel like you can't set aside anything.

That's also information that tells you that your pricing, your expenses, or even your business model might need some adjusting. So use that information, and it's not because you're failing, it's because your business should support you. Takeaway number three. Your numbers should support your marketing.

This is where my marketing brain comes in, and I want you to hear this. Marketing is not a random expense. It's a planned investment in your business, but it's only a planned investment if you have a plan for your money. When business owners tell me ads didn't work. A lot of times, what they mean is, I spent money, and it felt really scary, and I didn't see an instant return, and now I'm stressed out.

And that's completely fair, but it's also avoidable because good marketing takes time and testing, and that time and that testing also require a budget. Budget requires a structure, so having your numbers organized makes marketing more sustainable for your business. Takeaway number four: Track one metric consistently.

 If your early stages, and this all feels like too much, pick one thing to track consistently. For example, you could track your monthly revenue, your monthly profit, the tax money that you set aside, your owner pay, your expenses. One consistent habit is better than a big overhaul that you aren't going to maintain.

So if you need to keep it super, super base level, simple, just start there. Takeaway number five: ask yourself this question monthly. This is my favorite, simple but powerful question. Does the way I'm managing money match the kind of business I'm trying to build? Because if your goal is time freedom, but your money system requires you to say yes to everything, that's misalignment.

If your goal is peace, but when tax season comes around, you spiral, that's misalignment. Your numbers should help you build the business you want, not trap you inside when you outgrow. So let's wrap it up like this. You don't have to be perfect with money to run a successful business. You just need a system that supports you.

Profit First is one framework that has worked really well for me, and I truly believe it's been a huge part of why I've been able to grow my business with more stability and confidence. And as we move into tax season, I just want you to remember. Feeling stressed about your numbers isn't a flaw. It's a sign that you need Structure, and structure is something you can build one step at a time.

If you want to stay connected, I'd love to have you on my email list. I send two to four emails a month with encouragement. Clarity and honest thoughts about marketing and business, the kind of content that doesn't always fit on social media. You can join through the link in the show notes, and I truly love to have you there.

I'm also going to link to the Amazon link for Profit First. I do not get any credit for sharing any of this. This is just completely coming from a place of heart, of what's worked for me and what I think that you could gain out of it. So give it a look. You can listen to the book, or you can purchase the book on paper copy.

And personally,  I'm a paper copy kind of girl, so that's what I have. But anyway, thank you for spending time with me in the elements. Until next time, keep building with intention and give yourself grace as you grow.