Profit First Helps You Make the Tough Decisions – Without the Guesswork

So, you’ve read the book and started implementing Profit First. You’ve set up your bank accounts and decided on your allocation percentages. That’s a great start – but it’s only the beginning of the process.  And you have a few tough choices to make, but Profit First makes those decisions easy.

Many insurance agents stop here, assuming they’ve “set it and forget it”.  But here’s the reality: Your allocations won’t work unless you make your business fit within them.

Profit First Forces you to take a hard look at every expense and ask:

• Is this truly a need or just a want?

• Is this expense delivering a strong return on investment?

• Am I running my agency profitably – or just running the place?

Why Tough Decisions Are Necessary (and How to Make Them Smarter)

Some say business shouldn’t be emotional but let’s be real – money is always emotional.  That’s why working with a Profit First Coach can help you gain clarity.  

A coach helps you:

• Remove emotional bias from financial decisions

• See which expenses are truly essential.

• Understand who and what are driving the agency’s growth.

• Trim unnecessary costs – without damaging the business.

The key is to start with low-hanging fruit and then focus on the two biggest cost drivers in an insurance agency:

1. Marketing

2. Wages

These two expenses go hand in hand.  The real question isn’t how much you're spending – it’s what return you’re getting for that spend.

Learning the true ROI of Your Business Investment

Before making cuts, you need clear data on what’s working and what isn’t.

Key questions to analyze:

Sales Team – What are they producing in revenue?  Are they meeting benchmarks?

Purchased leads – Are they converting?  Which team members are maximizing them?

Service Team – How are they benefiting the agency?  Are they increasing client retention?

Marketing Spend – How much did you invest? What leads, policies or renewals came from it?

Wages Vs. Revenue – How much did you spend on payroll?  What revenue resulted from it?

• This analysis helps you rank team performance, marketing ROI, and overall efficiency.

• If an expense isn’t producing results, it needs to be reduced or eliminated.

• If a team member isn’t contributing to agency growth, tough decisions may be necessary.

• If marketing isn’t converting leads to revenue, it needs to be optimized.

Bottom line: Make Your Expense Fit Your Profit First Plan

At the end of the day, your agency must operate within the allocations you’ve set.  That means: 

• Cut the waste without cutting what drives revenue.

• Ensuring every dollar spent has a measurable return

• Make decisions based on data, not emotions.

Need Help Implementing Profit First in Your Agency?

Most business owners struggle with making these tough financial choices.  You don’t have to do it alone.

Book a free Profit First Discovery call today! Let’s build a cash flow system that ensures your agency becomes profitable, sustainable, and grows. 

Your business should work for you – not the other way around.  Let’s make this happen.