Kelly Reynolds

Today's podcast is being sponsored by the Get Your Agency Together group coaching program. This is a program I built for online service providers who either want to start an agency or to grow the agency they have so that it's organized, sustainable and profitable. Over five months, you'll be working with me and the rest of your cohort to break down and rebuild different parts of your business so that they align with the life you really want to build. The modules include systems you'll need offers you'll make the team you'll need to build and the journey your clients will take. Most importantly, you'll have to look at all of these things through the lens of the goals and the values you bring to the table. For more details, go to Reynolds opm.com and join the waitlist, you'll be the first to know when the program opens. See you there. Hello, everyone, and welcome to episode 85. So today, I have something special for you. Last week, I asked my friend Jenny Davis, who is still one of the highest-rated episodes of this Podcast, episode 13. To go live with me in my Facebook group to talk about profit first. Profit First is a finance method for handling your business finances in a much easier way that helps you understand where your money's going, and paying yourself first, instead of just being at the end, waiting and hoping there's money left over after all your expenses. I love this method. And since it's my mission to help service providers build profitable and sustainable agencies, I thought that that would be really helpful if I shared that life here as well. If you would like to be involved in more of these conversations that we're having, go over to the Facebook group, it's Get Your Agency Together Facebook group, it's free, just come on over and join in the conversation. All the info that Jenni and I talked about in this life will be in the show notes. So I hope you enjoy that we are Hello everyone. I am so so excited today to have my friend Jenny here to talk about some profit first. So this is the first time I've ever gone live with a guest. So if the tech isn't working, I've no idea what to tell you. Like trying to look at the other screen. Whatever. 

 

Jenny Davis 

We're just gonna go and be fine. 

 

Kelly Reynolds 

We'll go with the video. Okay, so my friend Jenny, who is still famous to this day, has the most highly rated podcast at the Get Your Agency Act Together Podcast, episode 13. All the way back in the day. She has been my friend to try to check out with me. Here we are. So Jenny, tell the nice people. A little bit about yourself. 

 

Jenny Davis

Okay, well, I'm Jenny Davis. I'm the owner of JMP business solutions. And what we do here is help service-based business owners manage the daily financials of their businesses. And we use specialized tools such as the Profit First method, which is what we're going to be talking about today. 

 

Kelly Reynolds

So exciting. So I will admit, I have the book, I read part of it, I do that part of it, and I love it. So even if you get the first part, it still works really great. So for all of those people who have never heard of profit first or have like heard it, it's numbers that scary. Can you just give us a little intro as to what it is? 

 

Jenny Davis 

Yes, so Profit First has been on the scene for a while and came out in 2014. Mike Michalowicz, wrote the book profit first. And it kind of went crazy because what it did was it started to focus on the needs of the business owner. Most times in business, we all know we're taught, to make money, earn money, pay our bills, what's left is your profit, your compensation. And Profit First comes in and flips the script and says this isn't how this works. What we're going to do is we're going to make money, we're going to make sure that you're making money, and we're going to take your profit first. And then we're going to manage the operations of your business on what's left over. And it's used, we use the system much like our grandparents did with the envelope system, where we get our money, and we allocate certain dollars into each envelope. And once those dollars are gone, we stop spending. And so in a nutshell, that's what Profit First is. But what it's really done is it's educated business owners that you're valuable, that you need to take compensation. That compensation not only includes a paycheck, but includes a bonus, and it includes your tax liability. No longer are you as the business owner has to take out of your personal funds to pay Uncle Sam and it's about that time right now, right?

 

Kelly Reynolds 

Yeah.

 

Jenny Davis

we're all writing those checks right now. But with the Profit First method, you don't have that stress because the money is that the nest egg gets put away for you. You write the check if there's anything left over which a lot of times there are, you get another bonus. So it kind of just turns that whole accounting situation around and it really has changed lives. 

 

Kelly Reynolds 

I wholly agree. I have my account set up every once a month to move things over. I don't know if that's the right way or not. But at the end of the month, I kind of Tally everything up and move things over. And then I know that my paycheck is like I pay myself out of the income account or the owners comp account, so it's automated, I get paid, and then you know, my mortgage is paid, and it's fantastic. And then also being able to write a check for the taxes without thinking about it without going, crap. Don't have the money to cover this, you know what I mean? Having everything where it's supposed to be, and just knowing it's covered, is an enormous, enormous weight off of me all the time. 

 

Jenny Davis

I know. I know, it really changes your money mindset. It's, yeah.

 

Kelly Reynolds 

that's the whole idea, especially in the beginning, when were first getting clients. A lot of people say, Oh, we got paid $1,000, that $1,000, just for us. And then we find out later, it's not $1,000 needs to go into a lot of places, you got to pay for our stuff, we got to pay Uncle Sam. So like being able to allocate that before you spend so that you don't get into trouble is so valuable. Yeah. 

 

Jenny Davis  

And also taking the thought of, I'm going to pay $1,000 for a course that I want. I'm just going to use my compensation to pay for that. So that I can build my professional development. That's not what we want. We want that professional development, we want any costs in the business to be paid for by the business. So the profit first method teaches your paycheck is your paycheck, that's to go pay your bills, pay your mortgage, like you said, pay utilities, take a vacation with your family, whatever you're going to do this is outside of business. And so the Profit First method really works for the benefit of the owner. 

 

Kelly Reynolds  

Okay, so let's go back a step and say like, what are the basic steps here? Because I think I'm going ahead because I know a little bit.  So what is the basic, the basic steps of it, like, Are there accounts you need to use, like when should be moving your money, that kind of thing? 

 

Jenny Davis

Okay, so the way that the book is written is profit first recommends five accounts, actually seven foundational accounts, five are going to be at your regular bank. And I'll go over what those are. And two are going to be at an offsite bank. These are no-touch hard-to-get-to accounts, and I'll explain why you need that. So when you first start out with Profit First, the first thing that you want to do is you want to assess your own business in order to reach the allocation percentages. And that's what Profit First is profit first says this is your revenue level. This is where you should be operating with your allocation. So you should be allocating 30% to operations 50% to the owner pay, 15% to tax, and 5% to profit, those are targeted allocations. But before we can get there, based on your revenue level, before we can get there, we have to see where you're operating currently. So that's where the instant assessment comes in. And if you're familiar with profit first, you know that that's the first step to do the instant assessment. The instant assessment tells us where you're currently operating. Most times, this isn't surprising. I wouldn't say it's bad news. But I would say it's surprising because we don't look at our income. We don't look at the money going out of our business and go, Oh, that's I'm spending 68% of my income on operating my business. We don't really do that, right? Like we're doing the bank balance accounting, and we're like, well, there's money in the bank, I'm probably right now there's still money, we're okay, right? Tomorrow, it's great. The first step is we're going to do that assessment, we're going to identify where you are. The second step is that you're going to go to the bank, we say get your butt to the bank, we want to open those accounts. So five accounts. The first one is an income account, this is where all your payments are going to flow into. So if you use QuickBooks, like QuickBooks payments, if you're depositing checks, cash into that account, all your processors, Stripe, Square, PayPal, all those deposits into this one account, typically that you want that to be a checking account. The next account you're going to open is another is an operating expense account, we call it Op X, another checking account. Right. And owners compensation is probably the most important one, in my opinion, a checking account, because you want to write yourself checks set up direct seeding, 

 

Kelly Reynolds 

Yeah, right. Everyone likes to pay their mortgage, 

 

Jenny Davis 

we're gonna set that up, and then two savings accounts profit and tax. And then we're gonna go to an offset account. I use a credit union because it's easy, there are no fees, and I have a checking account and a savings account set up there. So my checking is My Tax Account. And my savings is my profit account. So the tax account, I write my estimated tax payments right out of there. Actually, I have them electronically withdrawn. I don't even think about it anymore. Four times a year. The IRS comes in and takes their piece. And then the profit account is where I'm building my reserve. So the way we allocate is, and we can go into that a little bit later, is that you're saving half of your profit allocation every quarter and you're putting it into this off-site account, where you're building the reserve to help the business should have anywhere from three to six months of overhead reserves, that's where you want to be in the room. But Profit First is built on slow, steady steps. So we're giving an overview today, you're not going right to this, this is a process that can take up to 24 months to achieve these things, remembering the profit versus small, steady steps, we start with just one percentage at a time, changing the way that we allocate that income. So that was number two, getting those accounts open. Number three is identifying how you're going to roll this out. How are you going to implement this in your business? And like I said, most times, when we do the incident assessment, we see zero profit has been allocated, we're not saving for profit. Where do you see an example of our target is 5%? So we're going to go and we're going to over a period of time four to eight quarters somewhere in that range, and we're going to roll out profit first. So we're gonna start by taking 1% profit, then the next quarter, we might go to 2% profit, then the next quarter, we might go to 3%, profit, and so forth. And each account builds that way.

 

Kelly Reynolds 

It's awesome. I will say that putting that profit aside, like my part of the profit, I was putting that aside and putting that aside, and then when we want to do redo our bathroom, I was like, I have my bonus money here, that I can literally go to the store and get the extra fancy tub that we can now sit in, like all that. But like that's the kind of thing that you can do, because you're putting this money aside, and you don't think, Oh, I can't use it. Because this is going to be for op x, this is going to be for taxes, like you know that that money isn't for any of those things, that money is okay to spend. And it's so much of a mindset shift, I think. Because when you're spending that you also know that you cannot spend all of your OP X on your bathroom. You have those envelopes, those backs, elliptical envelopes that you can really, you know, what is good and what's not. And it helps you start to make really good decisions in your business. 

 

Jenny Davis 

That is probably my favorite part of profit versus that quarterly allocation bonus. 

 

Kelly Reynolds 

Yeah, 

 

Jenny Davis 

I mean, who doesn't want money, who doesn't want extra money, you can do whatever you want with it, right? 

 

Kelly Reynolds 

Like its freedom. It's like, oh, this is for me. And like you can do whatever. And that's, I think, this wonderful thing. It's like you are getting just like you would if you got a bonus in corporate, you're like, Whoa, like it's the same thing here. So I love that like you're you get like that extra thing at the end of the quarter. 

 

Jenny Davis

My clients make sure that they share all their profit wins with me. Because this is where we celebrate. This is the reason why we do what we do. Right. Consistent pay. We don't worry about Uncle Sam and those quarterly bonuses. Last year, I took my family to Disney World, on my quarterly bonus. I mean, it was the biggest one I had ever had. And I would after seven years and I was like yes. And I didn't worry about anything. I actually came home with some extra money, 

 

Kelly Reynolds  

You don't have the guilt and the anxiety of like, Nope, we're like, this is something no one is telling you. It's okay. Yeah.

 

Jenny Davis

Another client of mine just took his wife on a 10-day cruise, last checked out of his business, and went on a 10-day cruise. I mean, that's what Profit First did for him. Yeah. 

 

Kelly Reynolds

And I love the fact that like, it's such a mindset, it really does change it on its head. Because we always think that we have to reinvest, or we can only take out what we have or like we're always scrimping and saving, and this really just allocates that money in a way that you can make the Okay, well, this is how much I have to spend on operations. 

 

Jenny Davis

Yeah. 

 

Kelly Reynolds 

So either I have money to go buy that course. Or, Hey, maybe I should stop spending all this money on software you don't even like. It really does keep you on a budget, but not in a bad way. Like it just helps you kind of making decisions on your business. Like, if you're spending 70% like you were saying earlier on operations, that means you cannot possibly be paying yourself anything. Yes, exactly. 

 

Jenny Davis  

Mike uses the analogy of toothpaste in his book. And what he says is, which makes so much sense. And this kind of opens it up for everyone when they hear this story. When we have a tube of toothpaste, and we're going to brush our teeth. If it's a full brand new tube of toothpaste, we're squeezing freely, right, we're putting as much to face as we want on that toothbrush. And we're using it. But when we run out of toothpaste, it's the morning you've got to go to work, you don't have time to run to the store to buy some more toothpaste, you're cutting the end off, you're rolling it up, you're cutting it, scraping it out, you're doing whatever you have to do to make that toothpaste work. And that's the same thing that relates to the money in our business. When we don't have control and we don't decide or portion out what we spend, then we're constantly like it's a good bank balance. I've got money, let me spend it, let me spend it, let me spend it. But with Profit First, you have this allotted amount. So you have to know, you have to become vigilant about what's in that account. You have to be resourceful with how you're spending your money. We do expense audits, we look at sales, sales margins, you know, maybe you need to raise your prices. Maybe we need to get rid of some expenses. Team audits are good too sometimes because a lot of times we gather teams, and they're all great, we love everybody. But maybe that's not the right decision for our business today.

 

Kelly Reynolds  

This brings in a lot of like what we talked about here and the agency group and in my group coaching with that, like, my whole thing is being sustainable and profitable. And if you don't, if you're paying your team, all the money that comes in, right, you sold a $1,000 package, and now you've paid $950 to the team to do it. You're not making any money. So like knowing those teams, like having that team audit and knowing what your team is costing you. And if you need them, or if you can reallocate resources, that becomes really important. Otherwise, you make no money. And we're not in the business of hobbies, right? Business. 

 

Jenny Davis 

Yeah. So if you're looking at that operating account, and a lot of times more advanced strategies with profit first that you would have a payroll account, where you put in your payroll dollars, they're separating it from your operating account. But as long as we're looking at that, then we know it becomes very clear to us can I afford this? I probably can't afford it if I run out of money. You know, if you're trying to transfer money from other accounts, which is against the rules and profit first, then you probably have to reassess what you're spending your money on. So you mentioned that you do the monthly allocation. I wanted to talk about that, too. 

 

Kelly Reynolds 

Okay, you're gonna yell at me now? 

 

Jenny Davis 

No, no, no, no, I think this is what's important. A lot of people read profit first and think I have to do exactly as the system says, it says I have to allocate on the 10th and 25th of every month, and it says that I have to have these target allocations at this. But what I've found in all the years that I've been doing this, and I don't know if I mentioned it but I am a Profit First professional. This is basically what I built my business on. What I noticed is that, you know, not all businesses are created equally. So what we do here is that we customize the profit first plan for our clients. So like you said, your monthly retainer client, right, your income comes in monthly. So you allocate one time per month, very similar to my business, we have monthly allocations, and some companies have revenue flowing into really depends on the sales cycle, right? How often the money is coming in. So a lot of companies have money coming in all through the month. So twice a month allocation on the 10th and 25th. Makes sense as the book recommends. But then we work with some brick and mortar companies, a lot of construction companies, things like that. They need to be weekly allocators because of the way that their interests and their industry is set up. So I think that's important to remember that Profit First is the foundation. When we take the concepts, we know they can make a difference in our businesses, and then we customize it to meet our specific needs. Yeah, and that's I think a lot of people get lost in that, that if I can't do it exactly, as it says, 

 

Kelly Reynolds 

Right, 

 

Jenny Davis 

Maybe I shouldn't do it. 

 

Kelly Reynolds

Yeah, I mean, I basically ran my business on last month's money. So it can't, whatever happened last month, at the end of the month, I move all the things around, and then I run this month on this business. So that way I can pay my people on time, they don't have to wait for my clients to pay me for the thing, you know what I mean? So I'm kind of that month ahead, or which way or whatever way behind whatever it is. So for me, it makes it easier because I am, I'm going to preach to all of you that you should be on top of your finances. But I'm gonna admit that I'm not always on top of them. Because I'm always, you know, doing a million things. So I've made it to a point where I know that at the end of the month, I can do it. And it will be clean, and it will be great. When I was doing it all the time, I would forget that we got messy. So that's for me that works. And that's the important thing, right? It's kind of work for you. 

 

Jenny Davis

Yeah, exactly. That's exactly how we do it here in my business as we allocate on the 10th of the month. And that runs the business till the next 10th of the month. So our income account is accumulating through those 30 days. And then we do one big allocation for 

 

Kelly Reynolds

Yeah, okay, that makes me feel better.

 

Jenny Davis 

Yeah. And it does make managing those finances easier that way. 

 

Kelly Reynolds  

Yeah, I think that was gonna be my next question. Because I was on Wall Street for a long time. So not an accountant, but around numbers, and then you obviously know numbers. She's also the finance coach, the DOO, and the Director of Operations programs, so she really knows her stuff. So like we are numbers, people. So is this a thing that someone who's not a numbers person can do? 

 

Jenny Davis

Absolutely. It is. There are a lot of tools out there that will help you do that. There are professionals like myself, you could hire Profit First professional to do that assessment, and create the rollout plan for you. There's Profit First coaching, you can actually have a coach that's what we do here in our agency,  we coach profit first clients. It's a year-long coaching program. There's the book there's the DIY version. There are lots of resources. There is a fit for profit first with every company. I've never found a company that, like this doesn't fit that company, there's a fit for you. 

 

Kelly Reynolds 

I mean, like, I'm the one who's like, oh, I want to go on like Scrooge McDuck is what I call it. Any of you older people who remember Scrooge McDuck cartoons, but when he counts his money all the time, like, I'm gonna go count my money. Like, I'm so excited about it, because there's money to pay the bills, right? For people who are not me and Scrooge McDucking, I know that you have been working on some things to make this easier as well. So that, you know, if you are not in a place where you can hire a coach, or a full out, you know, person to handle all this for you. I know you've been working on a thing that I'm very excited about hearing about. So what have you been working on to make this easier for everyone? 

 

Jenny Davis 

I partner with Kelsey Smith, who is a data KPI specialist. She's a data nerd. Amazing, amazing. So we have our club, we call it the nerdy numbers, girls, you're part of that club, right? Because we just love the numbers. But that is what I found through working with clients is that there is such a block when it comes to money. There's a fear, you know, and you walk around with the belief that everyone else around you has it together. And you don't, so you don't talk about it. And the truth is, nobody has it together. You know, even you and I, there are things we don't have together, right? 

 

Kelly Reynolds

I'll admit it, I'm not the greatest of all time at my own stuff. Right? 

 

Jenny Davis 

Right, right. So what I wanted to do is I wanted to bring a product to the market that would allow all of the Profit First method to be able to be rolled out, that would allow someone that's not a numbers person to enter in some numbers, from their financial reports that we show them how to do and have this whole entire process mapped out for you. So Kelsey, and I created a tool called Profit First simplified. And this tool, we actually just released it. So I'm so excited about this. 

 

Kelly Reynolds

I've been hearing about this in the background for a while. And I'm so excited about it. Because I think it's going to be so helpful for people who are not numbers, people.

 

Jenny Davis 

Exactly. And we spent a lot of time bringing this to market, we really did because we wanted it to be perfect. I wanted to be able to give all the things that I give in my coaching program, all the things I do with my assessment, I wanted to be able to provide that to any entrepreneur, any revenue level, because I believe profit versus that life-changing in a business. It really is. So we've created this tool. And what it will do is it will walk you through that instant assessment that we talked about, you're going to literally enter information into about seven fields. That's it, it's going to auto-calculate that assessment and tell you where you're currently operating. So how much of your income is reallocated to operating expenses? How much are you paying yourself? Have you taken any profit? Have you saved for taxes, this tool is going to tell you that based on the information you put in, then step two is I'm going to walk you through how to implement how to create the rollout plan. So we may identify that you're operating at 39%, about 39% of your income is going to operating expenses. But based on your revenue level, you really should be at 30. So I'm going to show you how to take each quarter, and how to decrease that operating expense until we reach our target, which is 30%. Same thing with profit on owner pay in tax where we're going to increase those accounts. So we walk you through that step, and you'll have the complete blueprint on how to make it happen. And then probably the most exciting part about this tool is the allocation tool. So when it's time for you to allocate, you can choose either twice monthly or monthly, when you set up the tool,

 

Jenny Davis  

it will put in the dates for each month for the length of the rollout plan. So if you're doing four quarters, it'll put in a year, if you're doing 4 quarters it's going to put into yours, and it'll tell you the date. And then there are two simple fields for you to fill in the date that you actually make the allocation and the amount of money in your income account. And it auto-calculates everything. What do I deposit into profit? What do I deposit into tax? How much am I paying myself this time? And what am I operating my company on? And it's highlighted? It's very clear to read and you're done. 

 

Kelly Reynolds 

That's amazing. 

 

Jenny Davis  

Yeah, yeah, 

 

Kelly Reynolds 

That's amazing. I love this. I love this. I had absolutely heard this thing going on, but I didn't even know what it did yet. I just wanted to have Johnny come in here to talk about it cuz I think it's so important for our finances. And I have been like, I've had like a wonky spreadsheet for a while that like I'd figure things out, and then I don't know. So having this like dawn for you. Fantastic. 

 

Jenny Davis

Yeah, what we did, it's a mini course, The tools and mini-course so you're gonna get videos from both Kelsey and I are going to walk you through every single process. There's an extensive workbook that walks you through everything. We've also have some extra bonuses in there like Profit First friendly banks because you want to deal with a bank that knows profit first. So we have a bonus in there for that. And then probably one of the biggest bonuses that we have in the program is your quarterly assessments. So we talked about taking those profit allocations, paying your taxes, doing expense audits, and things like that, to make a difference to move to the next step of profit first. So this quarterly workbook is something that you'll go to, at the end of each quarter, you'll work the steps and you'll know exactly how to go on to the next quarter to be successful with the rollout. 

 

Kelly Reynolds 

I love it. I love it. Like, I shout from the rooftops. Not enough, frankly, all the time, I feel like having to know your numbers. And that is what makes our businesses successful is that we actually can pay ourselves. Like, there are so many people that I talked to, especially in coaching, and they're like, I have no idea how much money I make. And I'm like, Well, if you only make $1, for all this work, when you really just go to the beach, like you can find $1 and like coins on the bottom of your purse, as you could just go to the beach today. Like why bother with all of this if you're not going to make some money and you're not gonna be profitable, 

 

Jenny Davis 

or you're paying someone to work for them? Right? You don't even make the dollar. Right? 

 

Kelly Reynolds 

Like, that's the agency. That's what you see a lot with the agency. They've hired all these people, and everyone else gets paid. But the owner who's doing all of this work, yeah. Yeah, like a little. So I get very excited. Most of us are women here, I think I think all of us except for Shawn. I think that we get stuck in this kind of martyr thing. Like, Oh, it's okay. We don't need to get paid. We'll just get to help everyone. And you know what? It's bullshit. Like, we need to get paid so that we can take care of our families. That is freedom. We get to do things in our lives. Even if you take all the money you make, and you don't have to buy things you can go do think good things with it. Right? 

 

Jenny Davis

Yeah. 

 

Kelly Reynolds 

If the world had a whole bunch of good people who have a lot of money. What would the world be like?

 

Jenny Davis

Exactly, 

 

Kelly Reynolds 

right? Like, what good things can we do with all that money? So I like I love this. And it makes it very simple to make some money and have profit, and you don't need to be a finance nerd. I love it. I love it. 

 

Jenny Davis

And one of the things that are a real game changer too is as you start to do these allocations, you're to use of bank balance accounting, right, you're already used to going into the bank, looking at what's in that one checking account and going, I have money, let me split, you know, I can spend, but now you're gonna, you're gonna go to the bank, you're gonna open your bank out. And there's gonna be those five accounts. And it's gonna say, this is how much you have in tax, this is how much you have in profit, oh, you need an extra withdraw this month, this is what you have an owner pay. This is what you have left in operating. And as those accounts build over even the first quarter, you just get such a feeling of freedom, like that stress just drops off your shoulder. Like, I don't have to look at my account, and think, Okay, what do I have coming out? I know I have payroll coming up. You don't have to worry about that anymore. Everything is well organized and each account that it belongs to. So it's just the freedom that you get from now the correct type of bank balance accounting, right, you open it up?

 

Kelly Reynolds 

Yeah. Yeah, I mean, just. And the funny thing is, your brain starts to turn off that money like it's not available. Or like, if it's all in one pot, there's a lot of money there. But if you have, you know, $5,000 in a tax account, as you know, you're not allowed to spend that. So it doesn't even compute that you have that $5,000 anymore. Like my brain is like, those don't count, none of this money counts. And that's great because I know exactly what does count.

 

Jenny Davis 

Yeah. And then at the end of the year, this especially like we talked about this time of the year when you're getting your taxes done, I don't know one business owner that didn't always feel that burden. Like it's tax time, how am I going to come up with that money? What are things going to look like for me? Now you're ready? Like, I'm like, Bring it on? What do I need? Here it is, here's the check. Is there anything?

 

Kelly Reynolds 

All excited because you're all organized. Oxnard. I don't know if I can even see people. There's, there are some people watching. So I didn't know if anyone had comments or questions. If you do, we have a cup, like a minute or two with Jenny here before she gets off. And yeah, like, I love this. I love how easy this makes it is to be financially secure. And I think that so many of us, especially with COVID, and all these things in the world. There is this, unease around money in so many ways, right? Like, when I left corporate, I remember on my last train ride home from the city, I thought I will never make that much money again. And that last year, I'd made double that. But like, that's a mindset thing, to be able to get your money organized, be able to spend it the right way, and then be able to kind of allocate and make sure that everything's covered. 

 

Jenny Davis 

Yeah, 

 

Kelly Reynolds

Right. And it's a lot of freedom like I can take care of my family. 

 

Jenny Davis 

I know. It might seem and I want to say it might seem overwhelming, especially if you're not a finance person to think through all the things we talked about. Like I want this, but look at all the steps I have to do. So I always give this challenge out when I speak to groups, or when I speak to clients and say you don't have to do anything today. But one thing, and this is you're already going to be winning with profit. Starting today, I want you to save 1% of the next deposit that you have into a savings account, you probably have a savings account, if you have a business checking, likely you have a business savings account that might not have anything in it. But right, but 1% just do 1% and continue to do that with each deposit. Because you're already going to start feeling that freedom, even if it's small, right? So if you have a $1,000 deposit, we're asking for 1%. That's $10. Tell me you can operate if you can operate your business on $1,000 You can definitely operate it on 990. Right, right. Right doesn't that's not You're not gonna feel it. So put the one that 

 

Kelly Reynolds 

You can take yourself off for beer and tacos and feel like a big celebration. That's right.

 

Jenny Davis 

Even celebrations and small allocations. Yeah, that's, that's my, that's my challenge to everyone is do that. Do that. And then once you start doing that, you're going to have the taste of it, then you're going to want to look more into profit first.

 

Kelly Reynolds

This is so exciting. I will put the link as soon as I get it. I can't figure out the two screens at once. As soon as I get out of here, I will put the link in the comments. Go check out Jenny saying it's called Profit First simplified. Go check it out. I am so excited to have Jenny here. It's been great to catch up with you and to show everyone else because this Profit First comes up a lot. So I'm glad you could come in and talk to us about it. 

 

Jenny Davis 

Oh my gosh, Kelly. It's been so much fun. Thanks for having me. 

 

Kelly Reynolds

All right, we will. We will talk to everyone soon. 

 

Jenny Davis

All right. Bye bye.

 

Kelly Reynolds 

Thank you so much for joining me this week. If you have an agency or want to create one, come join my Facebook community, Get Your Agency Together. Where we talk about all things growing and scaling your agency for show notes and more info on all the things head over to Reynoldsobm.com Follow me on Instagram and Facebook at Reynolds OBM. And finally, if you enjoy this podcast, I would love for you to give us a review on iTunes.