THE Profit First Podcast

Gro Profit First Accountants

In this podcast series, Stephen Edwards , a Chartered Certified Accountant and the Director Gro Profit First Accountants delves into the real world of small business owners from the front line. You'll learn about how business owners really start off, how they survive and how they can flourish. https://groprofitfirstaccountants.co.uk/

  1. Growing Too Fast? Here’s What Most Business Owners Miss

    2D AGO

    Growing Too Fast? Here’s What Most Business Owners Miss

    Welcome to This Week’s Profit First Accountant Newsletter! Estimated Read Time: 4 Minutes Hi Everyone, It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit First Accountant Newsletter. This week, I want to bring it back to real-world Profit First stories — straight from the fire. I’ve recently been working with a business that had grown to nearly £1 million in revenue. They built a team of over a dozen people. On the surface, everything looked like success. For the first few years, it was happy days. But then came the squeeze. This is classic over-trading. Revenue grows, the team expands, overheads increase, and the pressure to constantly win new business becomes intense. Margins get tighter. Cash gets tighter. Decision-making becomes reactive rather than strategic. The numbers ran away from them. And this is the key point: Growth without financial control is not sustainable growth. I always talk about building a profitable and sustainable business — not just a growing one. Why Prevention Is Better Than Cure One of the biggest misconceptions about Profit First is that it’s something you implement when you’re struggling. It isn’t. In fact, the best time to implement Profit First is when things are going well. Why? Because that’s when you can build the habits and systems before pressure hits. Think about it like health. The NHS largely deals with problems once they exist. But prevention — good habits, discipline, structure — is what keeps you out of trouble in the first place. If your business is in a good place right now, don’t take it for granted. That’s the time to: Understand your margins properly Track trends monthly (not just yearly) Build cash reserves Put clear controls and KPIs in place Have regular financial conversations that challenge assumptions Because for many businesses, two bad months can be enough to cause serious damage. The Power of Cash Reserves One of the biggest benefits of Profit First isn’t just paying yourself more. It’s building certainty. When you have: Money set aside for tax Money set aside for VAT Money set aside for overheads A profit pot A small “rainy day” reserve You operate differently. You think strategically. You don’t hire from panic. You don’t cut staff from fear. You don’t make decisions from scarcity. Without reserves, every decision feels stressful. With reserves, you make calm, deliberate choices. That’s the difference between reacting and leading. When It Goes Wrong… In this particular case, because the structure wasn’t in place early enough: Team members had to be let go Culture was affected Debt had to be taken on Large tax bills created personal financial pressure We’ve also recently spoken to someone who received a very large surprise tax bill because there had been no proactive tax planning from their previous accountant. They now have to finance that personally and make lifestyle changes to deal with it. That’s not a position any business owner wants to be in. But it’s avoidable. The Role of Honest Conversations One of the most powerful elements of implementing Profit First properly isn’t just the bank accounts. It’s the accountability. When we work with clients one-to-one, we typically meet quarterly. Larger businesses may meet monthly for CFO-style support. Those...

    9 min
  2. The Single Most Important First Step in Profit First

    FEB 11

    The Single Most Important First Step in Profit First

    Welcome to This Week’s Profit First Accountant Newsletter! Estimated Read Time: 5 Minutes Hi Everyone, It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit Accountant Newsletter. This week, I want to share two things with you. First, a very practical Profit First action you can implement immediately. Second, a powerful mindset shift inspired by Steve Jobs that could transform how you spend your time as a business owner. Let’s start with the practical. If you’re not yet fully implementing Profit First, or you’re just getting started, there is one thing you absolutely must do before anything else: Separate your VAT. It sounds simple. It is simple. But it is also where I see more businesses go wrong than anywhere else. VAT is not your money. If you’re waiting for your quarterly VAT bill and it feels like a surprise… If you’re scrambling when your accountant tells you what’s due… If you haven’t been setting it aside weekly, fortnightly, or at the very least monthly… Then you’re not running a mature finance function. And I say that with respect — not criticism. This is where businesses get caught out. This is where cash flow collapses. This is where unnecessary stress creeps in. So here’s your starting point: Every week (ideally), or at least monthly Calculate the VAT element of your income Move it into a separate account immediately That money belongs to the government. Not you. Once you’ve done that, here’s your next small step: Let’s say you invoiced £12,000 and £2,000 of that is VAT. You’re left with £10,000. Start with just 1% profit on what remains. That’s £100. Set it aside. That’s how habits begin. When we work properly with clients, we go much deeper. We analyse two years of financial data. We calculate proper allocation percentages for: Profit Owner’s Pay Tax (personal and corporate) VAT Operating Expenses Cost of Goods Sold (if relevant) But if you want to start today — start with VAT and 1% profit. Small actions build powerful momentum. The Steve Jobs Insight That Changes Everything Now let’s move to something more strategic. I recently revisited a story shared by Kevin O’Leary about Steve Jobs. Steve Jobs was known for being driven, ambitious, and extremely focused. Not necessarily warm and fuzzy — but intensely clear about results. And he categorised work into just two types: Signal or Noise. Signal = Activities that move you towards your goals. Noise = Everything else. That’s it. He aimed to spend 80% of his time on signal. Now think about your week. How much of it is signal? How much of it is noise? Most business owners fall into two camps: Head down, constantly busy on the tools. Trying to “work on the business” but overwhelmed by options, distractions, and information overload. We live in a world of constant distraction. Notifications. Social media. Podcasts. Opinions. Advice. Too much choice destroys focus. So here’s your clarity tool for 2026: Ask yourself every day: What is the signal today? What is the one activity that moves me materially closer to my goal? Is it: Reviewing your numbers? Hiring the right person? Fixing your pricing? Having key sales conversations?

    9 min
  3. Profit First: Building a Business That Unlocks Freedom

    FEB 3

    Profit First: Building a Business That Unlocks Freedom

    Hi Everyone, It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit First Accountant Newsletter. This week I want to talk about something that rarely gets discussed properly in business — time away, boundaries, and rewarding yourself without guilt. I’ve just come back from a short break, and it really brought something into sharp focus for me. I speak to a lot of business owners, across all industries, and one pattern comes up again and again:   They are exhausted. They feel trapped. And they haven’t taken proper time out for years. So let me ask you something upfront:   When was the last time you genuinely stepped away from your business and switched off? Not a weekend where you checked emails. Not a “holiday” where you were still thinking about work. But real time away.   Why Business Owners Struggle to Take Time Off Most business owners tell me the same things: “I’ll take time off when things calm down.” “The business needs me.” “I can’t afford to step away.” “If I stop, everything stops.” And on the surface, those reasons feel logical. But dig a little deeper and what’s really happening is this: The business is running you — not the other way around. That’s not a failure. It’s incredibly common. But it is a warning sign. Because if your business can’t survive without you for a few days, then it certainly can’t support the lifestyle you started it for in the first place.   It Doesn’t Start With a Big Holiday Let’s get one thing straight. This is not about luxury holidays or weeks off at a time. That comes later. It starts with small pockets of protected time. For me, Mondays are sacred. I’ve talked about this before, but it’s worth repeating. Monday is not a delivery day. It’s not a firefighting day. It’s a thinking, planning, and strategy day. That space allows me to: Zoom out Make better decisions Plan properly for the week ahead Work on the business, not just in it During the week, I also deliberately create space by doing things like: Going to the gym Using the sauna Going for long walks This isn’t time wasting. This is where your subconscious works through challenges, opportunities, and ideas in the background. Some of the best decisions you’ll ever make won’t happen at your desk. So ask yourself: Where are you creating space in your week — if at all?   The First Big Milestone: Free Up Your Weekends If you’re currently working six or seven days a week, this is the first real milestone: Free up your weekends completely. A weekend that’s “a bit of work and a bit of rest” is not rest. Checking emails. Doing admin. “Just doing a bit of learning.” Listening to work podcasts all weekend. It all keeps your brain switched on. If this is you, give yourself permission to: Move learning into the week Create boundaries around your free time Stop pretending that half-working weekends count as rest Yes, I know this is hard. Especially if you’re a learner with a growth mindset. I’m exactly the same. But the problem is — learning has no natural limit. It will consume all your available time unless you create boundaries.   What This Has to Do With Profit First This is where Prof...

    14 min
  4. Creating your 2026 Business Plan: 8 Essential Questions to Ask Yourself

    JAN 23

    Creating your 2026 Business Plan: 8 Essential Questions to Ask Yourself

    Welcome to This Week’s Profit First Accountant Newsletter! Estimated Read Time: 8 Minutes Hi Everyone, It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit First Accountant Newsletter. As we head into Week 3 of 2026, there’s still plenty of time to step back and build a business plan that gives you clarity, direction, and a way to measure real progress. Too often, planning gets neglected because people think it needs to be perfect or take too long. But a rough plan is better than no plan. That’s why this week we’re diving into a simple but powerful framework: the 8-Question Business Plan. This approach works whether you’re a solo founder or running a growing team. You can do it in half a day, and it might be the most impactful thing you do this quarter. Watch the full video here The 8-Question Business Plan for 2026 Set aside 2–4 hours, block distractions, and get version one done. Planning is about clarity, not perfection. 1. What Are Your Core Values? These are the non-negotiable beliefs that guide how your business operates—how you hire, how you serve customers, and how you make decisions. Think About: What behaviours are rewarded in your team? What traits annoyed you in past hires or clients? What would someone need to “get” to succeed in your business? Example: Our core values at Gro are “KAN”: Continuous Improvement, Above-the-Line Thinking, and No Eeyores. It sets the tone for how we show up and who we choose to work with. Your core values create alignment, culture, and clarity. Start with 3 strong ones and refine over time. 2. What’s Your Core Focus? This is your purpose, your niche, and your reason for existing. It defines who you help and how you help them best. Think About: What product or service do you do best? Who are your ideal customers? What’s the bigger mission behind the business? Avoid trying to be everything to everyone. Focus wins. Whether you're the best dog groomer for nervous rescue pets or the go-to marketing coach for yoga instructors—clarity here is powerful. 3. What’s Your 10-Year Target? This is your “north star.” It helps you reverse-engineer where you need to be in 3 years, 1 year, and even this quarter. Think About: What would you be proud to have built? How much revenue/profit would make a real difference? What would your ideal role look like? Don’t stress about getting it perfect. If 10 years feels too far, aim for 5. Write something ambitious but exciting—and revisit it annually. 4. What’s Your Marketing Strategy? A lack of clear marketing is why many businesses struggle. You need a plan that builds trust, attracts leads, and sets you apart. Your marketing strategy has three key parts: a. Your 3 Uniques – What makes you different? Think About: Your customer experience Your process Your background or expertise b. Proven Process – How do clients work with you? Outline your service journey in 3–7 steps. Make it visual if possible. This builds confidence and clarity. c. Guarantee – Can you offer a promise that removes risk? Example: “If you don’t save at least £1,000 in...

    19 min
  5. How Predictability (and a Boring Business) Fuels Growth

    12/23/2025

    How Predictability (and a Boring Business) Fuels Growth

    Welcome to This Week’s Profit First Accountant Newsletter! Estimated Read Time: 3 Minutes Hi Everyone, It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit First Accountant Newsletter. As 2025 wraps up, I want to share something that’s resonated deeply with me this year and will shape my approach for 2026. Every year, I choose a theme—a guiding principle that keeps me grounded and focused through all the ups and downs. And honestly, I find it much more effective than setting short-term goals or dopamine-charged New Year’s resolutions that fade by February. We still set 10-year visions, 3-year and 1-year targets, and 90-day goals—but the reality for many business owners is that those goals get buried under endless to-do lists. That’s why a strong theme can provide clarity and energy that lasts. This Week’s Key Topic: Why “Boring Is Brilliant” in Business You might have heard my 2025 theme was “Less is More.” It was about simplifying, cutting through the noise, and focusing on the few things that make the biggest impact (hello, 80/20 rule!). Now, for 2026, my new theme is this: “Make Your Business Boring.” Yes, you read that right. I know it sounds uninspiring, but let me explain: a boring business is a brilliant business. Here’s the truth: if your business feels too “exciting,” it often means too much change, too many ideas, and not enough consistency. And that kills progress. As entrepreneurs, we love learning, creating, experimenting—new apps, new tools, new services (I’m a fan of AI tools like ChatGPT, Gemini, Perplexity, Replit, Manus, Sintra). But constantly chasing shiny objects just feeds our dopamine, while distracting us from building solid foundations. I’m someone who comes up with 10 new ideas a week. But I’ve learned that great businesses aren’t built on chaos. They’re built on: Consistency Predictability Systems Structure Look at McDonald’s: they’ve mastered consistency. Two-thirds of their menu rarely changes. They innovate, yes—but only in small, systemised ways. That’s what creates scalability. The Ceiling of Complexity If you’ve grown from £250K to £500K in revenue and now feel stuck, you might be hitting what I call a Ceiling of Complexity. It’s where your systems break down and everything feels harder. To break through it, you need to: Systemise Simplify Structure your team Focus on predictability Predictable businesses avoid surprises, manage cash flow better, and deliver better service. Real-Life Analogy: Table Tennis in Florida This summer in Florida, my son and I got obsessed with table tennis. We’re both competitive, so I started learning flashy shots on YouTube. But I kept losing. Why? I lost consistency. When I went back to basics—solid backhand returns, safe play, staying in the game—I started winning. Then I added a few flourishes when needed. That’s how you win in business too. The “boring” backhand wins 80% of the time. Innovation vs. Execution Don’t get me wrong—I love innovation. AI is going to transform everything. You must think about how the future will affect your business model, your team, and your customers. But most of your time should be focused on what’s working now. That’s where the profits and predictability lie. Questions to Ask in 2026 ...

    12 min
  6. Double Your Target, Double Your Impact: Unlock the Mindset That Fuels Profit and Freedom

    12/05/2025

    Double Your Target, Double Your Impact: Unlock the Mindset That Fuels Profit and Freedom

    This Week’s Profit First Accountant Newsletter! Estimated Read Time: 4 Minutes Hi Everyone, It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit First Accountant Newsletter. Are You Aiming Too Low? Time to Double Your Target This week, I want to talk about a powerful mindset shift—doubling your income target and the real value behind it. At a recent mastermind with about a dozen business owners, one woman shared her income goal. While I won't reveal the exact figure, the room's consensus was clear—it was too low. What stood out was that she wasn’t just sharing her target; she was almost asking for permission to want more. Comparison is the Thief of Joy Too often, we compare ourselves to others, and it drains our energy. Comparison leads to scarcity thinking and makes us feel like we’re behind—even when we’ve made massive progress. Instead, reflect on how far you’ve come. Look back 12 months or even three years. You’ll likely surprise yourself. Set a Real Income Target—And Make It Personal If you don’t have an income target yet, you need one. Don’t just pull a figure out of thin air—cost it out. What do you need for your lifestyle, family, holidays, and future? Once you’ve got that number, ask yourself: Is this limiting me? A few years ago, I did exactly this and realised I was capping my own potential. So, I doubled my income target—not because I “needed” more, but because I realised it would require me to grow and create more value. Money = Value Creation Money isn’t just about personal gain. It’s a reflection of how much value you’re providing to others. So when you limit your income goals, you may also be limiting the impact you’re capable of making. Growth Is Fun. Growth Is Freedom. What helped me emotionally connect to a higher target was giving. The more I earn, the more I can do—for my family, for causes I care about, and for building a buffer that provides peace of mind. The universe is always expanding—and our goals should do the same. Your Mind Will Tune In to the Target You Set Here’s the kicker: your brain is always looking for solutions. Set a low target, and it’ll find low-return paths. Set a bigger goal, and your thinking shifts. You read more, network differently, invest in better strategies. That’s the power of frequency tuning. Takeaway of the Week Don’t undervalue your worth. Set a goal that excites and challenges you—and maybe even scares you a little. Then go out and make it real. If you’ve got questions or want to chat more about how Profit First can help align your goals with your cash flow, drop me a message any time at stephen@cheltenhamtaxaccountants.co.uk. Until next week—keep putting Profit First! Warm regards, Stephen Edwards Profit First Accountant and Business Coach Gro Profit First Accountants

    9 min
  7. Tweaks, TAPs & Takeaways: Inside Our First Live Session

    11/26/2025

    Tweaks, TAPs & Takeaways: Inside Our First Live Session

    This Week’s Profit First Accountant Newsletter Estimated Read Time: 5 minutes Hi everyone, It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit First Club Newsletter! This week, I hosted our first Profit First Live Drop‑In Session—a more relaxed Q&A format to give business owners direct support. We had a great turnout with two attendees, Tom and Gary, who shared valuable insights into their Profit First journeys. Whether you’re just getting started or fine‑tuning your financial systems, there’s something here for you. To get the maximum value from this week’s topic, I highly recommend watching the full video recording or listening to the podcast version of our live session. You'll hear firsthand insights and questions from business owners like you. Tweaks, TAPs & Takeaways Inside Our First Live Session Watch the full video here Key Topics Covered This Week: Starting Profit First in a New Business Tweaking Target Allocation Percentages (TAPs) Handling Seasonality and Cash Flow Gaps Building Buffers and Emergency Pots Advanced Strategies for Long‑Term Profit Planning   Tom’s Journey: Starting Fresh with Profit First Tom, who runs a heating and plumbing business, shared his experience starting Profit First from day one of launching his limited company. He’s using a system that transfers income into a Metal account with pots for tax, OpEx, and profit—based on the book’s recommendations. What stood out was how Tom’s proactive approach (and listening to the Profit First audiobook) helped him start strong with cash allocation. His biggest concern? Making sure he’s saving enough for tax when January rolls around. We advised him to consider shifting from monthly to biweekly allocations for better clarity and control.   Gary’s Experience: Four Years In and Still Learning Gary, who runs a promotional merchandise business, has been implementing Profit First for four years. He’s tweaked his system over time, recently moving toward our recommended model that subtracts VAT and cost of goods sold (COGS) before making allocations. One of his key challenges is seasonality and cash flow timing, especially when he’s invoicing clients on 60‑day terms but paying suppliers upfront. Gary’s solution: build buffers in every account and track net worth weekly—including pensions, crypto, and emergency funds. He also emphasized the value of separating salaries from general OpEx for greater control—a more advanced tweak we sometimes recommend when it fits the business.   Key Insights Profit First isn't about rigid rules—it’s about creating a system that brings financial clarity, control, and consistency to your business. 1. Start With the Basics Open income and expense accounts. Use app like Monzo with “pots” to split funds for Tax, Profit, and Owner’s Pay. Simplicity sustains the habit. 2. Build Buffers Whether it’s the OpEx, Owner’s Pay, or Profit pot, build reserves to handle lean months. Seasonality is no longer a stressor if you've got a fallback. 3. Track Consistently Weekly or biweekly reviews help you catch problems early. Use a simple scorecard (Revenue, Profit, Cash, Debt, Payroll %, OpEx) to stay on course. 4. Tweak Percentages with Purpose Review your TAPs quarterly. Your real revenue (after VAT and direct costs) should guide your allocations. Benchmark against your history and industry—but don’t copy blindly.

    51 min
  8. The GRO Model: How to Build a Business That Pays You First

    11/18/2025

    The GRO Model: How to Build a Business That Pays You First

    This Week’s Profit First Accountant Newsletter Estimated Read Time: 3 minutes   Hi everyone, It’s Stephen Edwards from Gro Profit First Accountants, and welcome to this week’s Profit First Accountant Newsletter! Key Topics Covered: The GROW Model: A Blueprint for Smarter Finances The Three Pillars: Foundations, Profit, and Wealth How to Get a Guaranteed £2–5k in Tax Savings Building a Business That Works for You Most business owners are putting in the hours, taking on the risk, but not seeing the financial return they deserve. Around 80% of business owners are in this trap—and we want to break that cycle. That’s why this week’s focus is on what I call the GROW Model—a practical three-step process to building a better finance function and a business that truly pays you back. 1. Finance Foundations You can’t scale chaos—you have to scale clarity. Start by getting your financial basics in order. That means using an online bookkeeping system like Xero, QuickBooks, or FreeAgent. We prefer Xero, but the key is: it must be online, up to date, and giving you monthly clarity. No more chasing receipts or waiting months for your accountant to tell you how you did last year. You need real-time visibility, weekly or fortnightly bookkeeping, and a relationship with your accountant that goes beyond just filing a tax return. If you’re still stuck in reactive mode, now’s the time to fix that. 2. Profit Improvement Once your books are in shape, it’s time to turn your business into a profit machine. This is where the Profit First system shines—by giving you a proactive view of your margins, taxes, and cash flow. We help clients with monthly finance reviews, almost like having a part-time finance director without the £80k+ salary. Even if you only do a once-a-year forward-looking review, it can be transformational. Set your goals for 2026 now, not when it’s too late. 3. Wealth Maximisation You’ve built a better engine—now it’s time to take home more of the reward. We call this the Tax MOT—a deep-dive tax diagnostic based on 33 ways to save tax. We do this with clients annually, and the results speak for themselves: we typically find £2,000–£5,000 in savings, and we guarantee you’ll save something. This is where you make your business a true wealth-building machine, not just for the business—but for your family’s future too. Want to Know If You’re Missing Out? If you’re interested in our Tax Diagnostic service—whether you’re already a client or not—just reply to this email. We’ll help you uncover opportunities and get you on the path to higher profitability. Here’s to building a business that works for you.   Until next time, Stephen Edwards Profit First Accountant & Business Coach  stephen@cheltenhamtaxaccountants.co.uk Gro Profit First Accountants

    8 min
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About

In this podcast series, Stephen Edwards , a Chartered Certified Accountant and the Director Gro Profit First Accountants delves into the real world of small business owners from the front line. You'll learn about how business owners really start off, how they survive and how they can flourish. https://groprofitfirstaccountants.co.uk/

Information

  • Creator
    Gro Profit First Accountants
  • Years Active
    2020 - 2026
  • Episodes
    25
  • Rating
    Clean
  • Copyright
    © Gro Profit First Accountants
  • Show Website
    THE Profit First Podcast

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