How to Pay Yourself Consistently as a Small Business Owner (Using the Profit First Method)

Struggling with small business cash flow?

You’re not alone - and you don’t have to keep feeling like you’re working hard with nothing to show for it.

This post breaks down the Profit First method, a simple and proven strategy to help you:

• Pay yourself consistently
• Build real financial resilience
• Get off the feast-or-famine rollercoaster

This blog post is sponsored by Relay*, a business banking platform built for entrepreneurs using Profit First. It makes managing your money easier, smarter, and, dare we say, kinda fun?

We’ll dive into Relay a bit more later, but first let’s talk about traditional budgeting - and why that doesn’t really serve you anymore.

*Relay is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC.

Why Traditional Business Budgeting Leaves You Broke

If I had to guess, I would say you started your businesses to gain freedom and flexibility, not to feel broke, burnt out, and barely scraping by at tax time. 

But here’s a very typical scenario:

Money comes in, money goes out, and you're left with nothing to show.

Sound familiar? That’s because traditional budgeting follows this formula:

Sales – Expenses = Profit

The problem here is that profit becomes an afterthought… if it happens at all.

The Profit First Formula That Flips the Script

The Profit First system, created by Mike Michalowicz, redefines how small business owners handle their money. It works like this:

Sales – Profit = Expenses

You take your profit first, then cover your expenses with what’s left. It's a simple mindset shift that leads to serious financial transformation.

Why Profit First Works (Even If You’re Not a “Money Person”)

Here’s what happens when you consistently apply the Profit First method:

1. You pay yourself every single month - yes, even when revenue’s tight.
2. You save for taxes so there’s no more panic when tax season comes.
3. You stop overspending - you’ll always know what’s safe to spend.
4. You build a business safety net - so you can weather lean months and plan for the future.

It gives you confidence and clarity about your money, no matter what the economy throws at you.

How to Implement Profit First in 3 Simple Steps

1. Open Dedicated Bank Accounts

You’ll need five core accounts:

• Income
  
• Profit
  
• Owner’s Pay
  
• Taxes
  
• Operating Expenses

Think of these like digital envelopes, each with a clear purpose.

💡 Pro tip: This is where Relay shines. Relay lets you open up to 20 checking accounts with custom nicknames. It’s built for Profit First users and eliminates the stress of juggling multiple banks or getting hit with hidden fees and minimum balances.*

*Relay is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC.

2. Set Your Allocation Percentages

Decide what portion of every dollar you earn goes into each account. A basic starting point could look like:

• 5% to Profit
  
• 50% to Owner’s Pay
  
• 15% to Taxes
  
• 30% to Operating Expenses

Tailor it to your business - and start small if needed. Even 1% to profit builds the habit - and the habit is what creates real change.

3. Allocate Money Regularly

Twice a month (or whenever you get paid), split up your income based on those percentages.

Make it a “CEO date” with your money. Brew some coffee, turn on your favorite playlist, and treat this like the powerful, wealth-building ritual it is.

Why Relay Is the Best Business Banking Platform for Profit First

Most traditional banks make managing Profit First… well, a pain. Relay flips that.

With Relay, you can:

• Open multiple checking accounts
  
• Nickname accounts for clarity (think: “Profit” or “Taxes”)
  
• Automate allocations by percentage with every deposit

Relay is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC.

Example: How One Designer Made Profit First Work

I know this concept can be a bit tricky to grasp, so let me introduce you to Jane.

And let’s say Jane runs a design studio and earns $5,000 this month. She’s using Profit First and Relay.

Here’s how she allocates her revenue:

• $250 to Profit
  
• $2,500 to pay herself
  
• $750 to Taxes
  
• $1,500 to Expenses

At the end of the quarter, she’s built up $750 in profit! She can take half as a bonus and leave the rest as a cushion.

Profit isn’t just possible - it’s predictable.

Now, You May Be Wondering…

“What if my income is inconsistent?” No problem! Use percentages based on your lowest average month. Or create a “drip” account to even things out.

“What if I have business debt?” You can allocate part of your profit toward debt repayment. The key is to still allocate something to profit to build the habit.

“What if I already have a business bank account?” No problem - Relay can live alongside your current bank, especially if you're just using it for Profit First accounts.

“Is switching banks a hassle?” You don’t have to move everything right away. Start with your income deposits and build from there. Relay was designed to be plug-and-play for small businesses.

“But I’m not great with numbers...” Relay’s automations mean fewer spreadsheets and more automations.

Profit First = More Peace, More Paychecks

If you’re tired of wondering where your money went - or if you’ll ever pay yourself consistently - Profit First is your roadmap to financial stability.

Here’s your quick-start checklist:

• Open five accounts (Income, Profit, Owner’s Pay, Taxes, Expenses)
• Set your percentage allocations
• Make transfers twice a month
• Use Relay to automate and simplify the whole thing
• Watch your profit (and peace of mind) grow

Take full control of your finances, see what you're earning, spending & saving with Relay.

Ready to Get Paid - Consistently?

If you’re tired of hoping there’s money left at the end of the month...

If you want a system that supports your business goals AND your life...

If you’re done winging it with money...

Then you need Profit First. 

Open those accounts, set your percentages, and watch how much more resilient and confident you feel about your finances.

Ready to stop crossing your fingers at tax time and start paying yourself with confidence?

Give Profit First a try, click here to check out Relay and open your account today! 

It takes less than 15 minutes and you can earn $50 when you open a new Relay Business Checking account and meet eligibility requirements.**

**Relay is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC.

** Only new Relay banking customers with no previous relationship are eligible to receive the bonus. To receive the bonus, you must fund the account with a minimum opening deposit of $100 within 30 days of account approval and maintain this balance for 60 days to be eligible. Once you have met the eligibility requirements, the bonus will be paid out within 14 days. See terms for more details.