Building Better Habits Lead to Better Cashflow Management

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At SMG, we often remind clients that cashflow problems aren’t just financial — they’re behavioral.

You might be selling more, bringing in more clients, and working harder than ever… yet still wondering where the money goes. That’s because without the right habits in place, money can move through your business faster than you can track it.

That’s why we rely on the Profit First method, developed by Mike Michalowicz. It’s a simple yet powerful way to shift the way you think about your money — and more importantly, how you use it.

Flipping the Script on Traditional Accounting

The traditional formula we’ve all learned is:

Sales – Expenses = Profit

The Profit First method flips that:

Sales – Profit = Expenses

Why does this matter?

Because when you take your profit out first, you’re setting the intention from the start. You’re telling your money where to go, instead of wondering where it went.

It also helps create natural boundaries. When you take your profit out of sight, you’ll naturally find ways to work smarter with what remains — cutting unnecessary spending, prioritizing wisely, and building stronger systems.

It’s About Behavior, Not Just Budgets

Cashflow management is 80% behavior and 20% math.If cash is always available and within reach, you’re more likely to spend it.If it’s tucked away and allocated intentionally, you’ll be more disciplined and strategic.

That’s why we love the Profit First method:It empowers small business owners to feel in control. You’ll see that profitability isn’t just possible — it’s sustainable, as long as you build the right habits to support it.

It’s not about working harder.It’s about managing smarter.

Want to improve your cashflow management?

Let’s build better habits together. Schedule a Clarity Call with us today.