Purposeful . Profitable

 How to Find Banks That Support Profit First

  • Pinterest
  • Facebook
  • Twitter
  • LinkedIn
  • Gmail

Sabrina Pelech, Profit Catalyzer

8 MIN READ

Profit First is a proven system. Over 100,000 companies have used this method. The most common question is, “What bank should I use for Profit First?” Here is the simple answer:

You want to work with a bank that does not charge minimum balance fees on checking or savings accounts.

Which leads to “How do I find that bank?”

Consider Your Existing Bank

Why go through the process of switching banks if you don’t have to? Start by evaluating your existing bank and review your current accounts. Talk to your banker and tell them you would like to set up more checking and savings accounts. Before you set up the accounts, ask if there are any fees for having a low balance. This applies to both new and existing accounts.

“Profit First works because of Intent, Allocation, and Organization. If we can ensure we carry these forward, we can make a system that works for us!.”

If your current bank doesn’t charge for having a low balance:

Congratulations! You have a great bank that’s perfect for Profit First. When you talk to your banker, tell them you’re excited about saving more, just like making a profit. To make this happen. Transfer funds between accounts, occasionally leaving some with zero-dollar balances. That’s why it’s crucial to have no minimum balance fees. It’s helpful if your banker knows about the Profit First system and understands why you’re implementing it. With these exciting strategies, you can maximize your reading score!

Now that your banker is fully prepared, it’s time to establish your five fundamental accounts. Start by organizing your accounts. Before moving forward, ensure you’re ready for income, profit, owner’s compensation, tax, and operating expenses. Be sure to visit our blog on Blog –  What is Profit First Chiro to get our comprehensive getting started checklist. Get ready to elevate your financial game!

If your existing bank does have a minimum balance fee:

Tell them you want to save more money at the bank, like making a profit. To do this, transfer money between accounts, sometimes leaving some with zero dollars. Then, ask if they are willing to waive their fees.

If they won’t waive their fees, it shows how much they care about and support your business. And it is a strong indicator that you need to find a new bank.

 

Finding a New Bank

A great place to start your search for a new bank is to look at Community Banks and Credit Unions. Businesses often implement Profit First with banks that don’t have minimum balance fees. These banks often provide advanced technology packages, making banking easier than larger institutions. Community banks also tend to have the most secure banking platforms and are better equipped to support small businesses.

Here at Profit First Chiro we work with a small community bank and have many accounts set up there for our business. No fees, no problems. Community banks offer the perk of personalized attention. Even with Janice’s playful eye roll, they get my system and give great support, something not always seen in bigger banks.

Here is a great tool to find a community bank near you:
ICBA Bank Locator

Here is a great tool to find a credit union near you:
NCUA Credit Union Locator

Switching to a New Bank

Please don’t get overwhelmed. I know moving to a new bank can seem daunting. If you follow the steps below, it can be an easy and painless process, and remember, you don’t need to do it all at once. Here’s how to make switching banks painless:

1. When you find a credit union or community bank without minimum balance fees and allows unlimited (or at least 10) checking/savings accounts, go ahead and set up the initial accounts.

2. Request three checking accounts for Income, Owners Comp, and OpEx. You can add accounts later for advanced Profit First techniques, but this will get you started.

3. Minimally, request two savings accounts for Profit and Tax.

4. With the accounts set up, you can transfer from your old bank to your new Profit First bank.

5. Don’t close the accounts at the old bank just yet.

6. Start the transfer by putting new check deposits into the Income account at your new Profit First bank.

7. Then set up the transfers for any other types of deposits to your Income account at the new bank. This may include credit card receipts, wire or ACH transfers, or transfers from payment processors like PayPal.

8. With the money now flowing into your new bank/credit union, you will naturally start to pay bills from that bank and follow the Profit First process.

9. As your bank accounts dwindle at your old fee-charging bank, stop all vendor payments and all deposits from going to that bank. Once the cash flow at the old bank is stopped, shut down the accounts and transfer all the remaining money from that bank to your new Profit First bank.

Remember, having the bank on your side, who supports you and understands what you are trying to achieve, is always helpful. I realize this may take a few hours of your time over a few days to get initially set up, but don’t let that dissuade you. I mean, you want to be profitable.

Don’t Believe the Doubt:

Please don’t believe a word of it. Refrain from letting a banker convince you that Profit First won’t work for you.

Unmasking Banker Skepticism:

Sure, some bankers might argue that the Profit First method is too complex or ineffective, but that’s simply because they need to learn better. Have they ever utilized Profit First or collaborated with clients who have? Not likely. They are basing their assumptions on limited knowledge and lack of success stories. It’s in their best interest to dissuade you but don’t let that dampen your spirits.

Resistance to Change:

Bankers tend to resist change. They stick to their rigid system and prepare canned speeches for clients. Currently, they expect you to conform to their established mold. Instead of taking the time to understand your unique approach and its benefits, they prefer to steer you toward their methodology. Why? Because it’s easier for them.

Stand Strong Against Influence:

Please don’t succumb to their influence. Clearly explain what you’re doing and why to the banker. If they won’t open their ears, it’s time to find a new banker. While their intentions may be good, their advice needs to gain practical experience with Profit First. Their attempt to discourage you is solely for their benefit, not yours.

Your Profit First Journey:

Remember, Profit First is all about you. We will ensure you achieve lasting profitability, and choosing the right bank is a crucial first step!

  • Pinterest
  • Facebook
  • Twitter
  • LinkedIn
  • Gmail

Download our Profit First Chiro Switching Banks guide to get started today!

Pin It on Pinterest

Share This