The Single Most Important First Step in Profit First
🏆 Welcome to This Week’s Profit First Accountant Newsletter!
🕐 Estimated Read Time: 5 MinutesListen to the full episode here.
``` ```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 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?
- Improving your marketing system?
Or is it rearranging your inbox?
Your job is not to find a better productivity app.
Your job is to eliminate noise.
Say no more often.
Protect your focus.
Design your week intentionally.
If you can consistently spend more time on signal activities, your growth will accelerate — without needing to work longer hours.
*This Week’s Action Steps
- If you are VAT registered and not separating VAT weekly or monthly — fix that immediately.
- Start with 1% profit on remaining income. Build the habit.
- Identify your top three signal activities for this quarter.
- Eliminate one major source of noise this week.
_Simple. Practical. Powerful._
If you want help implementing Profit First properly — with accountability, structure, and a clear roadmap, just reply to this email or contact me directly:
Let’s make 2026 the year you focus on signal, build real profit, and stop running your business on stress.
Have a great week.
Stephen EdwardsProfit First Accountant and Business Coach
_Gro Profit First Accountants_
*Haven’t read my book yet? Get your copy of _How to Build a Business That Runs Without You_ on Amazon now.
Want some help?
3 Ways I can help you.- Get some tax tips from my TikTok HERE
- Book a Tax Diagnostic Discovery Call To See if we think we can save you money? If you are not a client, then you can book a call HERE so we can learn more about your business.
- If you are a client and we don’t already help you with Profit First or you taxes, email me via hello@wearegro.co.uk to arrange a chat about the Profit First System and how it can increase your cash balance and profits (guaranteed)