Welcome to this week’s instalment of The Profit Project interview series where we’re talking all about profitability and Profit First implementation. With the guest being one of Mints CD Consulting’s first ever Profit First clients, Ruth Newman from Ruth Newman Architect.
In our chat we cover:
How Ruth got started with Profit First
As alluded to in the introduction, Ruth’s introduction came from us. As she was one of our beta testers during the certification process to become a Profit First Professional. I could share the full story in detail here but it’s best to check out the video to get the inside scoop.
Challenges Ruth experienced
When we started the implementation Ruth shares that her business was like many others. Money in, money out. Given the project nature of much of her work she was also experiencing the impacts of late payments and the timing of progress payments on those jobs.
Then as we implemented Profit First, the first challenge was with bank accounts. Businesses have varied experiences with this and the lack of flexibility with her current provider meant needing to look at some work arounds.
Benefits and outcomes of implementing the methodology
Ruth identifies 3 key benefits she saw, and each of these happened quite quickly
- Had money to pay herself more
- Seeing profit as a cash amount
- When the quarterly BAS came she had a smile on her face as the cash was there
Tips for implementing and ideas around profitability and cashflow
The main point Ruth noted in this space was being on top of invoicing and the debtors which reflects the nature of the project-based services.
Cashflow is the lifeblood of the business and we need to have that flowing through so the allocations have consistent cash going into each of the accounts.
But Ruth also shares, “(Profit First) it’s not about reducing expenditure, it’s about knowing where the money is going.”
Check out the full interview here for more great insights on implementing Profit First:
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