In this episode of the Build Your Business Podcast, Matt and Chris break down how to apply Profit First for Founders, giving business owners the framework to stop the cash burn and start building real profit. Whether you’re bootstrapping your first venture or trying to turn around a growing company, this episode teaches you how to restructure your financial systems, track the right metrics, and take home more money without compromising growth. You’ll walk away with actionable tools to get lean, reduce financial stress, and make decisions grounded in reality.

Why Founders Must Master Financial Reality

Matt and Chris start by calling out the common mistake of relying on lagging indicators, like delayed accountant reports or gut feelings about cash flow. They emphasize that if you want to lead your business confidently, you need real-time visibility into topline revenue, gross margin, and net profit—no exceptions. This is foundational to running a profitable company and avoiding crisis-mode decisions.

They also outline how to build a simple financial dashboard or use a tool like QuickBooks Online to gain daily insight into your financial health.

Profit First for Founders: A New Financial Operating System

Most founders think profit is what’s left over at the end—but Profit First for Founders flips that thinking entirely. The system starts by allocating profit from the beginning, forcing a lean and intentional operating approach. The duo unpacks the five foundational accounts: Revenue, Profit, Owner’s Compensation, Taxes, and Operating Expenses.

They share how setting even a 1% profit target early creates the right financial habits and how gradually increasing that number over time builds sustainable wealth and opportunity. Implementing Profit First for Founders early on changes the game by constraining spending before it happens, not after it’s too late.

Getting Lean: How to Cut Fat Without Killing Growth

Profitability isn’t just about revenue—it’s about spending less to keep more. Chris and Matt walk through practical, founder-tested strategies to reduce expenses, including:

• Canceling or renegotiating bloated subscriptions
• Auditing services that no longer deliver ROI
• Using 1099 contractors strategically instead of W-2 hires
• Implementing separate bank accounts for taxes, payroll, and profit

They emphasize that the fastest way to profitability is cutting operating expenses—often the most bloated and controllable category in early-stage businesses.

What to Do If You Didn’t Start with Profit First

If you didn’t begin your business with the Profit First for Founders framework, it’s not too late. The episode explains how to take a two-day financial deep dive, identify waste, and immediately start reallocating resources. From trimming payroll and renegotiating vendor contracts to raising prices and improving gross margin, the hosts walk through the exact steps they took to cut over $750,000 in burn and turn a profit within one quarter.

They also share how managing expenses weekly—not monthly—created faster course correction and better peace of mind.

Make the Move Now: Your End-of-Year Action Plan

Don’t wait for Q2. The final section is a strong call to action: set up your sub-accounts, assign your percentages, and implement Profit First for Founders now. With year-end approaching, founders have a golden opportunity to get ahead while competitors wind down. Use the holiday lull to cut unnecessary expenses, separate your business and personal finances, and prepare for a strong start to 2025.

As Matt says, “The anxiety comes from the work you know you need to do but haven’t done yet.” Start today.