Impressions - September 2018 - 26

Impressions: Has there been an immediate benefit that you thought
was surprising?
KR: By the end of the first quarter, we'd accumulated more than $20,000
in our "Profit" account. My wife and I couldn't believe it and we're both
thrilled with the results.
SC: We have been profitable since day one. It is the No. 1 resource I
recommend to a new business.
TK: The immediate benefit was seeing how much money I actually
have. I did not fall behind with taxes this year because I had a tax account with more than enough to cover everything. I have an operating
expense account and I know just how much I'm allocating to spend
over a given time.
Most importantly, I'm paying myself a salary out of my owners
pay account. Within a month, I have enough money in that account
to cover my salary for two months. December through February has
always been a struggle for me financially due to it being a slow time
of year. This year, I'm on track to be able to pay myself through those
slow months.
JH: It really has opened my eyes to spending and what fixed expenses,
loans and monthly payments we have.
Impressions: If you could give one suggestion to anyone starting Profit
First, what would it be?
KR: Start it now and don't wait. Even if you can't put much away at
first, getting the system in place is a game changer, and the first step
is getting your accounts and the model in place. If accounting is not
your thing, and you don't have someone on staff who can do it for you,
then find and hire someone who can. If done correctly, the additional
money you make and save should more than cover what you pay to
implement and manage the Profit First model.
SC: Start yesterday. If you aren't ready to make the all-in plunge, take
baby steps. Set up your profit account today and begin transferring
1% of all deposits into that account. If you have a $400 check come
in, take $4 and stash it away for profit. If your business can operate off
of $400, it can operate off of $396. Then, each quarter, increase your
amount by 1% until you hit your target profit allocation.
JH: Create your accounts because that's free and easy. Contact a Profit First Professional and ask for help. It's very hard to do it yourself,

but it's possible. If you are an owner/operator, you need the help of a
professional to get things moving for you.
Impressions: Have you had to spend more time doing accounting tasks
than normal with Profit First?
TK: Slightly more time, but it's more enjoyable now. It's almost a game
every two weeks when I split my earnings up between my accounts. My
wife enjoys it so much I let her do all the transfers. My QuickBooks accounting software still is a slight mess, so that's the next project to tackle.

Ron Saharyan, co-founder and managing partner of Profit First Professionals, leads the group of accountants, bookkeepers and business
coaches who guide entrepreneurs to high levels of profitability. He has
more than 15 years of experience managing organizational growth and
specializes in business cash-flow management.
Impressions spoke with Saharyan on topics from working with Profit
First Professionals to expectations for revenue growth using the system.
The following is what he had to say.
Impressions: What is the No. 1 reason that a company would need to
work with a Profit First Professional, rather than implementing this
system themselves?
RS: Profit First DIYers only have explicit knowledge. Certified Profit
First Professionals have tacit knowledge. Explicit knowledge is something that you can get out of a book, you can get it from a PowerPoint
presentation, a spreadsheet, a podcast etc.
Tacit knowledge is what is "sticky." It is the stuff that is in your head.
It is all the little tricks of the trade, the experiences you have learned.
It is the craftsman's way of knowing when to break the rules, or the
surgeon who knows when to deviate from standard procedures. It's
tacit knowledge that's so expensive to transfer.
Impressions: What is the percentage split between companies that handle
Profit First on their own vs working with a Profit First Professional?
RS: Pretty much like the gym and fitness industry - 80/20. About
80% goes to the gym themselves, 20% use a personal trainer. Ironically,
those 20% get a much better experience and results sooner.
Impressions: One of the biggest challenges that I've seen from speaking with companies is finding no-fee banks to use. Is there a master
list available?
RS: Due to this we have begun to "certify" banks directly. The North
West Bank of Iowa will be the first. There's an article on our website,
profitfirstprofessionals.com, that will help users identify banks. The
website also has a link to our bank list.
Impressions: What is the bottom-line dollar impact on Profit First
for revenue growth for small businesses that implement this system?
RS: We find that businesses that use Profit First generally are growing
two times faster than their contemporaries. 
Marshall Atkinson, owner of Atkinson Consulting LLC, is a decoratedapparel industry production and efficiency expert who focuses on
operational efficiency, continuous improvement, workflow strategy, business planning and more. For more information or to comment on this article,
email Marshall at marshall@marshallatkinson.com.

Howlers Ink's owner, Tim Kelly, says he would pay bills
when the company previously had a good month, but
never paid himself a salary - until now.
P.26

i m p r e s s i o n s m a g . c o m SEPTEMBER 2018

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Impressions - September 2018

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