Ever feel like profit is that mythical creature in your business? A unicorn you’ve heard about but never actually seen? It’s not just you. I ran my business like a financial Houdini for years, making revenue appear but watching profit vanish. And then I discovered the magic trick: a separate bank account only for profit. Stick with me, and I’ll show you how to turn your business into a money-multiplying machine. Spoiler: no actual unicorns required.

The Profit First mindset: Why your business needs a profit account

Let’s face it: most of us treat profit like the leftovers of a chaotic Thanksgiving dinner. Whatever scraps remain after expenses get tossed onto the profit plate. That’s backward. Profit should be the first thing you serve yourself. It’s the dessert you save room for, not the cranberry sauce you forgot in the fridge. 

This isn’t just some woo-woo idea. It’s a proven method I laid out in Profit First. When you prioritize profit by setting it aside first, you guarantee that your business serves you and not the other way around. And don’t worry, it’s not about depriving your business of funds. It’s about getting intentional with your money.

Step 1: Open a dedicated profit account

This is where the magic starts. Open a separate bank account that’s only for profit. And I mean only. Don’t let it become your “Oops, I forgot to budget for that” account. Name it something inspiring: “Freedom Fund,” “Bali or Bust,” or simply, “Do Not Touch, Mike!”

If you’re already thinking, “Ugh, another bank account to manage,” this is different. (Pst – The folks at Relay make it ridiculously easy to open and manage multiple accounts for your business. Think of them as your profit wingman.)

Step 2: Transfer 1% of all income into it

Here’s the fun part. Every time money comes into your business, skim off 1% and send it straight to your profit account. It’s like paying yourself a tip for being awesome.

“But Mike, 1% won’t even cover my coffee habit!” True, but the goal isn’t to get rich overnight. It’s about building a habit. That 1% will grow, and you won’t even miss it. Plus, you’ll get addicted to seeing that account balance climb. It’s like watching your favorite Netflix series, except this one comes with real money.

Step 3: Keep your hands off (for now)

Resist the urge to dip into your profit account like it’s a bowl of office candy. The idea is to let it accumulate until the end of the quarter. Then, take 50% of what’s there and do something fun. Buy yourself a treat, invest in something you love, or finally replace that squeaky office chair.

What about the other 50%? Leave it in the account. This builds a buffer for your business, so you’re not scrambling during lean months. Think of it as your financial safety net—a safety net lined with gold, of course.

Why this works: A dose of behavioral science

Ever heard of Parkinson’s Law? It’s the idea that work expands to fill the time available. The same applies to money: expenses grow to fill the revenue you let sit in your main account. By moving that 1% out of sight, you break the cycle and force yourself to run your business more efficiently.

Human brains are weird. We’re more motivated by seeing progress than by logic. Watching that profit account grow, even a little, gives you the dopamine hit you need to stick with it.

What happens when you start

At first, this might feel awkward. You’ll look at that 1% and think, “Why bother?” But small actions compound. Over time, this habit builds financial momentum. And when you see your profit account hitting numbers you didn’t think were possible, you’ll wonder why you didn’t start sooner.

Also, be prepared for some tough love. This habit might shine a spotlight on areas where your business is leaking money. But that’s a good thing. It’s like finding out your favorite pair of jeans still fit and you’ll thank yourself later.

Your challenge: start today

I’m not asking you to overhaul your entire business overnight. I’m asking you to take one small step: open that profit account and transfer your first 1%. That’s it. No spreadsheets, no complicated formulas, no crying into your keyboard.

If you’re feeling fancy, check out Relay to make the process even smoother. Their tools were basically made for this kind of system. And once you see how easy it is to take control of your finances, you’ll never look back.

Creating a money multiplier habit isn’t about getting rich quickly. It’s about building a business that serves your life, not the other way around. By prioritizing profit, you’re setting yourself up for financial stability, growth, and dare I say it, actual fun.

Your future self and I are high-fiving you in advance. Go open that account, transfer that 1%, and start turning your business into a profit-generating machine. 

Wishing you health and wealth always.

-Mike

PS – Want more guidance implementing Profit First? Reach out to the folks at Profit First Professionals – they’re the experts! Want to set up your accounts? Relay makes it easy – check it out here.