Have we Got things the Wrong Way Around?

It’s Tax return time where we start crunching the figures in our creative business and turn our minds to numbers and Profit.

But how does any of this relate to your Art you may ask? Well, after reading the book ‘Profit First by Mike Michalowicz,’ I wondered if we are approaching our Art from the wrong way around…

Profit in Business is defined as a way, 'to obtain a financial advantage or benefit.’  The book, Profit First, suggests that business owners have profit the wrong way around.  Usually, our profit is figured out at the end of the year when we finally get around to doing our taxes as follows;

 Sales - Expenses = Profit. (Or whatever is leftover in the pot).
 

This book suggests that we’ve got this the wrong way around and instead of waiting for the end of the year to see what crumbs are left that we should think of our Profit First.  So, each time you get paid, the first thing you should do is transfer 1% into a ‘Profit account.’  Over time, when your business grows, you up that percentage to 3%, 5% and so on.  

Now, let’s consider for a minute that our Art is a form of Personal Profit - a way to 'to obtain a personal advantage or benefit,’ which we usually dedicate time to pursue as follows; 

Income Generation - Commitments = Personal Profit (or whatever time is leftover)

Maybe we have this the wrong way around too and we should instead put aside a small percentage of our time to our own Personal Profit, first?
 

Mike Michalowicz suggests starting by allocating 1% towards profit because any business should be able to operate on whatever 99% is left over.  The same surely applies for Personal Profit that we should be able to get all our other tasks completed in the 99% of time left remaining to us. If we find that works, we can always increase it to 3%, 5% and so on.

If we sleep 8 hours a night (we all wish!) we’re left with 112 waking hours per week. 1% of that is just 1 hour and 12 minutes. 

If you’re currently not creating your art (or whatever personal profit means to you) and want to, start to think of Profit First and allocate just 1% of that time for your own personal advantage and benefit and put that in your diary...first? 

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Studio Notes

If you’d like to create more art, my bi-monthly email, Studio Notes is packed with strategies for your creativity, gives you a peek into the studio and delivers encouragement and lessons to make time for and develop your Art.

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