By  Michael Braswell

 

 

Let’s start by taking a breath.

Seriously—try it with me: four seconds in, hold for four, out for four, hold for four.

When I am giving a presentation, I open most of my talks that way—not just for the group, but for me too. After 20 years in corporate America, decompressing is a daily practice. That world made me high-strung. It gave me spreadsheets, stress, and structure. But what it didn’t give me was the know-how to run a child care business.

Even now, when I feel myself getting overloaded—by numbers, staffing, finances—I come back to that breath. A few seconds of calm to clear the chaos.

Because when Mandy and I bought our center, we were brand new to entrepreneurship. We’d never owned a business, never paid ourselves, never run accounting systems. We came from the world of W-2s and tax returns. And suddenly, we were running a child care center—without a clue what we were doing.

 

 

From Debt-Free at Home to Lost in Business

Back when Mandy and I were still W-2 employees, we followed Dave Ramsey to the letter. We paid off our debt, ditched the credit cards, and built a solid financial foundation. That’s what gave us the ability to buy our first child care center when the opportunity came up.

But once we were in business, I realized those same personal finance principles didn’t fully apply. The business world played by different rules. We weren’t just managing a household budget anymore—we were trying to figure out how to pay ourselves, how to cover taxes, how to stay afloat when enrollment dipped.

That’s when I started digging deeper. I picked up Rich Dad, Poor Dad and saw that line—pay yourself first. That concept stuck with me. Then I found Profit First by Mike Michalowicz. I bought the book… and it sat on the shelf for two years. Honestly, I thought it sounded a little too easy. Maybe even a little gimmicky.

But after one too many financial curveballs—and no real system to help me plan ahead—I finally gave it a chance.

What I found was a simple, clear framework that helped me stop running my business in reactive mode. I didn’t jump in all at once. I was nervous. I kept thinking, what if I set money aside and then we need it later? But eventually, I had to let go of the “what ifs.” Because the way we were doing it before? That wasn’t working either.

 

 

Putting Profit First into Action

Profit First is a cash management system that flips traditional accounting on its head.
Instead of:
Sales – Expenses = Profit
You do:
Sales – Profit = Expenses

You take your profit out first—not at the end, and not “if there’s anything left.” You give it a job. Then you run your business with what remains.

Here’s how we got started:

• Opened five accounts: Income, Profit, Owner’s Pay, Taxes, and Operating Expenses
• Created a rhythm: On the 10th and 25th of each month, we allocate money from the income account to the others, based on percentages we’ve set
• Started with just 1%: One percent of every dollar went straight to our profit account. We didn’t even feel it—but it added up fast
• Made profit harder to access: I opened a separate bank account for our profit—no debit card, no online transfers.
  The harder it is to reach, the more likely it is to stay put

And that’s the whole idea. You have to protect your future profits from today’s temptations. Make it inconvenient—on purpose.

 

 

You Deserve to Be Paid

Let me be clear—we didn’t open child care centers just to make money. We love this work. We love the kids, the staff, the families, the programs we’ve built. Our centers are like our babies. They’re a source of pride.

But we are not doing this for free.

Some people feel guilty… but you shouldn’t. We’re in this industry to make money.

Profit allows us to:

• Invest in better materials and facilities
• Pay our team well
• Handle emergencies without panic
• Grow, expand, and innovate

If you’re not making a profit, you’re going to burn out. You’ll start resenting the business that once lit you up. You can’t show up your best when you’re stressed and stretched thin.

I want my staff to have the best place to work. I want them to be happy every day. And how do I do that? I make sure they have the tools they need—and I can only do that when I set aside profit.

You deserve to be paid for the work you do and the impact you make. Profit is how you protect that.

 

 

When Profit First Became Real

When I started implementing Profit First, I stopped wondering if I’d get paid this month. I stopped worrying about tax bills sneaking up on me. I started planning vacations in advance and paying for them in cash. I got my time, clarity, and confidence back.

Let me give you an example.

In 2023, we bought our building. Great decision. But within months, we had to dig through the foundation to fix a sewage line—$20,000. Then came roof leaks. The insurance didn’t cover them. That was another $48,000.

And you know what? We were okay.

Because the money was already there.

Had we not been using Profit First, that would have been a disaster.

 

 

The Toothpaste Principle

Here’s how Mike puts it in the book: when you’ve got a full tube of toothpaste, you use it freely. When it’s almost empty, you get creative. You squeeze and twist and flatten until you get every last drop.

Same thing with money. If all your funds sit in one giant operating account, you’ll spend more than you should. But if you separate it out—Profit here, Taxes there, Pay over here—you start spending with purpose. You get smart. You stay lean.

It’s not about being perfect. It’s about being aware.

 

 

Start Where You Are—Not Where You Think You Should Be

You don’t have to overhaul your entire financial system today.
You just have to start.

Start with one percent. Open a separate account. Name it “Profit.” Transfer that 1% every time money comes in. That’s it. You won’t notice it—but by the end of the year, you’ll have a cushion you didn’t even feel leaving.

Over time, you’ll increase it. Maybe 2%, then 5%, then more. But you’re building the habit first.

And don’t beat yourself up if you’ve made mistakes. I have too. I’ve signed contracts I didn’t understand. Paid myself too much through payroll. I sent extra money to the IRS that I didn’t need to. We’re all learning.

But Profit First gave me a system that works—even when enrollment dips, costs go up, or life throws a curveball.

 

 

This System Works Because It’s Simple

You don’t need to be an accountant. You don’t need to love spreadsheets. You just need to give your dollars a job, and stick to the rhythm.

I always say—this system isn’t just about your business. It’s about your family. Your health. Your future. Your legacy.

Once you start seeing how Profit First stabilizes your finances, it becomes addictive—in the best way.

If you’re curious about how to implement it in your own center, reach out. We can go deeper. Because once this clicks? You won’t ever go back to the old way.