How are you handling the “Great Resignation”?
In case you haven’t noticed, people are resigning from their jobs in record numbers and trying to find new ones. There’s been a 300% increase in new business registrations and filings across the United States. It’s totally unheard of.
So how are you handling the Great Resignation? What are you doing to retain your employees? Are you hiring good employees or are you only finding bad ones?
Today we’re going to talk about how Profit First sets you up for success with your employees. It helps you find them, retain them, and keep providing them with the financial compensation that modern employees need.
Profit First and Employee Retention
There is an unprecedented amount of people quitting their regular jobs and trying to switch up what they’re doing. Really what they’re trying to do is find a better connection and more interest in their careers. A lot of people are leaving larger W2 jobs and things like that in favor of either being self-employed or working for somebody that has a bigger impact on their community.
And so the question is, what are you doing to retain your employees and to attract new ones?
Profit First is actually a key ingredient here. Profit First is a cash management system for businesses. It’s the envelope system that your grandparents used, where they got a paycheck and split the cash into various envelopes for different expenses, only adapted and modernized for today’s business world.
A Warning System For Your Business
The Profit First method of cash management helps us guide spending and warns us when we’re getting low on cash.
When you have Profit First set up in your business, and you’re getting low on cash, Profit First can raise a red flag and show you which account is getting really low. It shows you when and where you need to make a change in your business. It helps you to know when to dive deep into your operational expenses and accounting systems to figure out what it is that is actually causing the cash flow issue. It’s an early warning system.
That early warning system helps set you and your employees up for success. Profit First helps make sure you have the funds to offer raises or bonuses or other incentives and compensation packages for employees. It helps ensure your long-term success by making sure you have the funds available today and tomorrow for doing what you need to do to run your business and make changes before something becomes an emergency.
If you’re running out of money in one or more areas, you’ve got to make changes to fix it, right? That’s what Profit First does, it ensures that you’re prepared to maintain your financial resources for running and operating your business the way you want to.
Keep It Simple
Profit First is a simple, easy way to manage the cash flow of your business. That’s what’s so powerful about it. It lets us know when we need to dive deep into the operations, the accounting, and really figure out where we need to make those tweaks. That way we can maintain that positive cash flow throughout the whole business cycle.
To learn more about Profit First and how to apply it to your quilt shop join Money Made Simple Academy for Quilt Shops. We talk once a month about how to actually implement some of these ideas, we address challenges, and you get insights from me and the team about what works and what doesn’t work. There is a myriad of other great benefits that come along with it to help you apply these principles in your business!