My Business On Purpose

We stumbled across Mike Michalowicz’s Profit First methodology back in 2017 when a friend sent me a sample chapter of the book and I devoured it.  We were only a couple of years into our business coaching firm and honestly were looking for a method that would demonstrate a numerical return on the investment our clients were making in themselves by engaging with Business On Purpose. The premise is basic: subdivide your bank accounts. Instead lumping all of the money of your business into one, two, or three accounts, begin subdividing each dollar according to where that portion of the dollar is supposed to go. If your cost of goods sold (COGS) is 30%, then roughly 30 cents of each dollar should be funneled into a COGS account, and so on. After a year of subdividing our own accounts we realized the massive real and psychological value of subdividing each dollar.   Others started following suit and we even began tracking the weekly balance of our cash into what was a more revealing “cash flow” report than the rep