Let’s talk about a topic that makes many OTpreneurs cringe: money management. Budgets, spreadsheets, taxes—it’s not exactly my strong suit as an OT! But here’s the thing: managing your money well is what keeps your business healthy, sustainable, and stress-free.
And there's one method I highly recommend to make it feel doable and even empowering: the Profit First model.
What Is the Profit First Method?
Profit First is a cash management system created by Mike Michalowicz that flips the traditional formula on its head. Most businesses use:
Revenue - Expenses = Profit
But Profit First uses this:
Revenue - Profit = Expenses
In short: you pay yourself first 💵
Then, you operate the business on what’s left.
It’s like giving your finances OT-style structure: clear roles, consistent routines, and functional systems. 🙌
Why Profit First Works (Especially for OT Business Owners)
Traditional budgeting can feel overwhelming—especially if numbers aren’t your happy place. Profit First uses a behavioral finance approach: it works with your habits instead of against them.
💡 "When you take your profit first, your business will tell you what it truly can afford." — Mike Michalowicz
Instead of hoping there’s money left at the end of the month, you make profit, pay, and taxes a priority from the start.
The 5 Core Accounts of Profit First
Just like you break down tasks in therapy, the Profit First model breaks down your money into clearly labeled accounts with designated purposes. Here’s how it works:
1. INCOME Account
All your business revenue lands here.
Think of this as your holding tank. Every 1st and 15th of the month, you transfer money into the other accounts based on pre-set percentages.
2. PROFIT Account
This is your reward for owning the business—not your salary. It builds up as a cushion for your future.
Quarterly, you transfer half of this account to your personal account as a bonus 🎉
3. OWNER’S PAY Account
This is your paycheck. Even if you're a solo practitioner, you deserve consistent income.
It also helps you separate your personal and business finances—a huge win for tax time!
4. TAX Account
Nobody wants to scramble come April. You move a percentage of revenue into this account to cover self-employment taxes, sales tax, and anything Uncle Sam wants.
5. OPERATING EXPENSES (OpEx) Account
This is what’s left for running your business: rent, software, staff, marketing, etc.
If the money here is tight? Don’t panic—your business is telling you to adjust expenses before it’s too late.
Sample Percentages for a Small OT Practice
Starting point (adjust as you grow):
| Account | % of Income |
| Profit | 5% |
| Owner’s Pay | 50% |
| Taxes | 15% |
| Operating Expenses | 30% |
These numbers will change as your revenue increases and your practice matures—but the key is to start somewhere.
How to Get Started in 5 Simple Steps
Pre-step is read the book! The audio version is read by the author and he is entertaining to listen to! After you read the book then:
1. Open Separate Bank Accounts
Yes, really. Physically separate the money. Behaviorally, this changes everything.
2. Know Your Current Numbers
Look at your income and expenses over the last 3 months. Then figure out your baseline percentages.
3. Choose Your Profit First Allocation Days
Most people use the 10th and 25th or 1st and 15th. Put it in your calendar 📆
4. Start Small
Even if you start with just 1% to Profit, it builds the habit and creates momentum.
5. Review and Adjust Quarterly
Your allocations aren’t set in stone. Review what’s working, then shift as needed.
Why I Love Profit First
- ✅ It’s simple and behavior-based
- ✅ Helps you pay yourself consistently
- ✅ Prepares you for taxes (no more last-minute panic)
- ✅ Encourages sustainable, profitable growth
- ✅ Gives you clear financial boundaries—just like good client care does!
📊 Stat: Businesses that implement Profit First see an average of 15% higher net profit within the first year (Source: Profit First Professionals, 2022).
Final Word: Your Profit Is Not Selfish
Profit isn’t greedy—it’s responsible. When you run a profitable business, you can serve your clients better, pay your team well, and support your family without burnout.
You became an OT to help others—but you started a business to build a life you love. And you deserve both 💚