Which small business system is right for you—and how they actually work in practice
If you’ve ever Googled how to manage your business money, chances are you’ve come across Profit First—the popular method by the brilliant Mike Michalowicz that flips the traditional equation of Revenue – Expenses = Profit.
But if you’ve also discovered The Small Business Planner, you might be wondering:
What’s the difference?
Do they work together?
Which one is right for me?
In this post, we’ll break down the key differences between Profit First and The Small Business Planner, including:
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What each system is designed to do
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Where they overlap
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Where they differ
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Which one works best depending on your business goals
Let’s dive in.
What Is Profit First?
Profit First is a cash management system that helps business owners prioritize profit from day one by allocating funds across multiple bank accounts.
Instead of using the traditional accounting formula:
Revenue – Expenses = Profit
Profit First says:
Revenue – Profit = Expenses
You allocate your income into categories—Profit, Owner Pay, Taxes, and Operating Expenses—using set percentages. You transfer money into separate bank accounts twice a month and spend only what’s available in each category.
The goal is to create discipline, visibility, and profitability—even if your income fluctuates.
What Is The Small Business Planner?
The Small Business Planner is a financial planning system built specifically for small business owners who want more than just cash management. It helps you:
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Set monthly revenue and salary goals
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Build your pricing around your income needs
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Plan for taxes, expenses, and growth
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Create a consistent owner paycheck
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Understand your numbers without hiring a CFO
At its core, The Small Business Planner is a decision-making tool—not just a bank account system. It guides you through how much to pay yourself, how to structure your pricing and offers, and what to focus on financially each month.
Where They Overlap
Both systems:
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Encourage separating your money using multiple business bank accounts
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Emphasize planning ahead for taxes, expenses, and owner pay
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Are designed to work without needing advanced accounting knowledge
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Help reduce stress and financial confusion
If you’ve ever felt overwhelmed by the numbers, both tools aim to create more clarity and control.
Where They Differ
Here’s where the differences become clear:
| Feature | Profit First | The Small Business Planner |
|---|---|---|
| Primary Goal | Prioritize and automate profitability | Build a full business financial plan |
| Focus | Allocation system for cash already earned | Strategic planning for future income |
| Key Tools | Bank account structure + transfer rhythms | Monthly financial calendar, pricing tools, income targets |
| Flexibility | Rigid percentage-based rules | Flexible, custom planning based on goals |
| Education | Assumes you’ll learn the method through the book or advisor | Step-by-step planner with explanations and implementation tools |
| Best For | Solopreneurs who want strict discipline with cash | Owners who want to grow income and build a sustainable salary |
| Includes Tax Planning? | Yes, via set allocation % | Yes, with custom calculator + savings tools |
| Includes Pricing Strategy? | No | Yes |
| Includes Salary Planning? | Yes, but fixed % | Yes, with full reverse-engineering from personal needs |
Which One Should You Use?
If you want…
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A strict, rule-based system for managing your cash: Profit First
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A flexible, strategic approach to growing your business and paying yourself: The Small Business Planner
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Both: You can combine them!
In fact, many Small Business Planner users adapt the Core 4 Account Structure (Income, Owner Pay, Expenses, Taxes) and layer in elements of Profit First’s percentage system if that’s helpful.
Final Takeaway
Profit First is a solid cash management method.
But The Small Business Planner is a growth system designed to help you plan, earn, and take home more—without confusion.
If you’ve ever asked:
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How much should I pay myself?
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How do I set income goals that actually cover my life?
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What should I charge to afford a team, taxes, and a raise?
…then The Small Business Planner gives you the tools to answer those questions—with clarity and confidence.
Explore The Small Business Planner → https://smallbusinessplanner.com/products/planner