How I’d Set Up a Guaranteed Profitable Practice 💯

If I were starting a solo practice today and wanted to run a consistent 15% net profit margin, I’d use the Profit First method and do this from day one:

Step 1: Set up five separate bank accounts

A portion of dollar you year needs a different “home” to prevent accidental spending.

When money is mixed together, it’s impossible to know your true profit.

Multiple accounts create a clear visual system that prevents financial stress.

Alternative approach: You can track these allocations in a spreadsheet with different “accounts.” While the Profit First author doesn’t recommend this method (worried people will look at their single bank balance instead of the spreadsheet), it can work well if you’re diligent about only referring to your spreadsheet numbers for spending decisions

Choose the method that you’ll actually stick to – separate accounts are more foolproof, but spreadsheet tracking can work with discipline.

Step 2: Pre-allocate every dollar using these percentages (or whatever percentages make sense for your practice):

• Profit: 15%
• Owner’s Pay: 45%
• Taxes: 20%
• Operating Expenses: 20%

Most people skip this step entirely.

But this is a huge mistake—they end up paying themselves whatever’s left over (usually nothing) and wonder why they’re always stressed about money. By allocating every dollar before you even earn it, you ensure profit isn’t an afterthought.

Step 3: Transfer earned revenue twice per month into each category’s “home” account, based on the percentages

• On the 10th and 25th of each month
• No exceptions
• No borrowing between accounts

This isn’t easy.

But if you can do this, you will get:

• Predictable personal income that doesn’t fluctuate with business ups and downs
• Peace of mind knowing exactly how much you can spend on operating expenses
• A guaranteed profit that builds your business’s long-term wealth

Don’t skip this step.

The first five years of my practice I was winging it when it came to finances. I had no idea how much money I’d have in the bank month to month, let alone if I’d be able to pay myself what I wanted to.

After implementing the Profit First system, I have consistently had a profit margin and don’t worry about paying myself, the government, or my expenses. It’s the best peace of mind I could ask for as a business owner.