Let’s be honest: in the early days of running a creative business, most of us learn about money management the hard way.
You land clients, the money hits your account, you pay some tools, pay some contractors, maybe buy a cute new planner… and suddenly you’re asking:
“Wait—where did all the money go?”
That was definitely me in the early stages of running my branding and website design agency. Until I found a system that actually helped me pay myself first, track my cash flow with clarity, and start growing real profit.
That system? Profit First by Mike Michalowicz.
I started using it in 2023 and it completely changed the way I run my business finances. Here’s what it is, why it matters, and exactly how I use it today—two years later.
What Is Profit First?
At its core, the Profit First method flips the traditional business formula:
Old way: Revenue – Expenses = Profit
Profit First: Revenue – Profit = Expenses
You take a percentage of your revenue off the top and allocate it to “profit” before anything else. Then you divide what’s left into specific buckets—Owner Pay, Taxes, Expenses—so you always know what’s available and what’s already spoken for.
Instead of hoping there’s something left for you at the end of the month, you’re paying yourself first and operating your business with the reality of what’s left.
It sounds simple—and it is—but it’s also wildly effective.
Why It Matters (Especially in a Creative Agency)
As someone who runs a service-based business with a team, platforms, and plenty of recurring tools and subscriptions, I can tell you: It’s really easy to overextend when everything’s coming out of one account.
Profit First helped me:
- Get intentional with my cash flow
- Start building a cushion (without trying so hard)
- Actually pay myself consistently
- And grow my revenue—because I was finally treating the financial side of my business like a real business
It’s also what gave me the peace of mind to prep for maternity leave, knowing I had savings in place, my profit was growing, and my team was covered.
My Setup: How I Use Profit First in My Design Business
I’ve adapted the book’s method to fit how I run my agency—but the bones are still the same.
➤ My Bank Accounts
I use five separate bank accounts:
- Income – where all payments come in
- Profit – where I skim a % off the top
- Taxes – covers my payroll taxes
- CEO Pay – my own compensation
- Payroll – for team pay + mine
Each account has a purpose, which removes 99% of the guesswork.
➤ My Percentages
Here’s how I divide my income:
- 6% → Profit
- 6% → Taxes
- 37% → CEO Pay
- 51% → Operating Expenses
That 51% includes all my team support, tools, systems, and business overhead (excluding me).
➤ My Rhythm
Every two weeks (on payroll days), I:
- Check what’s in my Income account
- Divide the money based on my percentages
- Transfer accordingly into each bucket
- Pay myself from the CEO Pay account (through payroll)
- Keep Profit untouched—or add a little extra if cash flow allows
What I Love About This System
Here are a few small things that make a big difference:
- Having a CEO Pay account feels empowering. Even if I don’t take all the money out, it’s mine, it’s set aside, and it’s still in the business if I need it.
- Profit gets saved at the start—not the end. That small % adds up fast, and if I have a strong month, I’ll often drop a little extra in there.
- Income becomes a holding zone. Not all of it gets drained—sometimes I let extra sit there to prep for the next month, especially if a big expense is coming.
The biggest benefit of all? I never wonder if I can pay myself. The system handles that for me.
Final Thoughts
Profit First isn’t about strict rules or complicated spreadsheets. It’s about ownership—of your income, your growth, and your peace of mind.
If you’re a designer, creative, or service provider running your own business, I can’t recommend it enough. Whether you follow the method exactly or make it your own, the shift in mindset alone is worth it.
Want to Try It Yourself?
You can grab the book here: 👉 Profit First by Mike Michalowicz (Not sponsored—just sharing the resource that helped me feel more in control.)
Want to stay in the loop for all future Align & Amplify Podcast episodes?!
CLICK HERE to subscribe on Apple Podcasts!
