When I talk to business owners about their finances, I often see the same look flash across their faces the moment I say “Profit First.” It’s a mix of curiosity and panic. Curiosity, because who doesn’t want to run a profitable business? Panic, because they’ve heard it’s complicated: five accounts, strict allocations, all these rules.
Let me stop you right there.
Yes, Profit First is brilliant. Yes, the full system has multiple accounts and percentages. But you don’t have to start there. In fact, I don’t recommend it. Because what happens when you try to change everything all at once? You freeze. You overthink. You tell yourself, “I’ll get around to it when I have time.” Spoiler: that time never comes.
So here’s my challenge to you:
Start with one account. Put 1% of your revenue there.
That’s it. Just 1%. If you make $5,000 this month, move $50. If you make $20,000, move $200. That’s less than what most of us spend on streaming subscriptions or a takeout habit we barely notice.
And here’s the magic: you won’t miss it.
The human brain is funny. We think we’ll notice when money is gone, but when it’s automatic and small, it just disappears from sight. You’ll still pay your bills. You’ll still run payroll. Your lights will stay on. What will be different is this: at the end of the month, you’ll look at that one account and realize you’re building something you never had before—profit you can actually see.
I’ve had clients text me pictures of their Profit First account balances like proud parents showing off a baby’s first steps. At first it feels silly: “It’s only a few hundred dollars.” But then a few months go by, and suddenly it’s $1,000, then $5,000. And here’s what every single one of them says: I can’t believe how fast it added up.
Why 1% Works
Business owners are doers. We like quick wins. If I tell you to overhaul your entire banking system overnight, you’ll shut down. But if I tell you to open one savings account at your bank and move over 1%? You’ll actually do it. And doing it is the whole point.
That 1% isn’t about the dollar amount—it’s about building a habit. It’s about training yourself to put profit first, even in the smallest way. Once you’ve done that for three months, guess what? You’ll be ready for 2%. Or maybe 5%. You’ll already have proof that the world didn’t end, your vendors still got paid, and you still put food on the table.
It’s financial training wheels. And once you see that you can ride, you’ll want to go further.
One of my clients—a contractor—started with exactly this system. He was nervous, because in his world, cash flow is everything. He told me, “Rachel, if I take even a dollar out of operating, the whole thing falls apart.” I told him: just try 1%.
He agreed, reluctantly. Three months later, he called me with a laugh. “You were right,” he said. “I didn’t even notice it was gone. And now I have $2,400 set aside. That’s a tool fund I didn’t have before.”
Billy Harper, our cover story, came to us wanting to implement Profit First right away, but he wasn’t ready either. With less than a year under his belt, and insane growth—hiring new employees almost monthly and planning to build a warehouse—we didn’t have any big picture to work with. But you know what he could do? One percent. And within six months, he even had enough to cover unexpected equipment expense. He’s building the habits he needs to fully launch Profit First in 2026.
The human brain is funny. We think we’ll notice when money is gone, but when it’s automatic and small, it just disappears from sight.
Keep It Simple
Here’s the rule: don’t overthink it. Don’t stress about getting the “right” percentages or setting up all five accounts. That will come later if you want it to. Right now, the win is in getting started.
Open a separate savings account at your bank. Call it Profit.
Move 1% of your monthly income there.
Do not touch it.
That’s it. Three steps.
Over time, if you love the clarity this brings, you can add the other accounts—Owner’s Pay, Taxes, Operating Expenses. You can tweak your percentages to fit your goals. But don’t let the full system overwhelm you into doing nothing.
If you do nothing else, you’ll still have profit—and that, my friends, is revolutionary. Most small business owners—maybe you included—are used to scraping by, telling themselves, “Someday I’ll take more home.” Profit First flips that script: pay yourself first, even if it’s just pennies, and let the business learn to run on what’s left.
So here’s my invitation to you: go open that account today. Yes, today. Don’t bookmark this article and say you’ll come back. Drive to your bank, or open one online, and start with 1%.
You’ll be shocked at how little you miss it. You’ll be thrilled at how quickly it grows. And you’ll wonder why you didn’t start sooner.
Profit First doesn’t have to be overwhelming. It doesn’t have to be complicated. It just has to start.
So start.
But What About My Debt?
If you’re carrying debt, you might feel like Profit First doesn’t apply to you yet. Maybe you’re thinking: Shouldn’t I put every extra dollar toward paying this off?
Here’s my take: yes, debt needs attention. But if you only ever throw money at debt without creating a profit habit, you’ll stay stuck in the same cycle. The cards get paid down, then an emergency hits, and you swipe them again.
Profit First breaks that loop. Even while you’re paying down debt, you can still put aside 1% for profit. Why? Because it’s not about the amount—it’s about proving to yourself that profit comes first, no matter what. That 1% builds a muscle. It tells your brain and your business: “I am a profitable company. I keep some of what I make.”
When your profit account starts to grow, you can choose to use part of it toward debt payoff—that’s fine. But don’t skip the habit. The goal isn’t just to get debt-free once. The goal is to stay debt-free because you’ve finally learned to run your business with profit at the center.
So if you’re looking at balances and feeling discouraged, here’s your permission slip: start Profit First anyway. Start small. Start today. Pay down debt and build profit at the same time. You’ll be amazed at how empowering that
