Profit First is a Cash flow Management System that supports prioritizing Financial Sustainability and getting business owners paid.

It is a tool for helping you implement a financial strategy that will lead to financial sustainability and profitability. I am a proponent of the strategy because it has proven to be a valuable extension to the work that I do with my clients and program members, BUT Profit First will NOT make you financially sustainable and operating as a cash-based business overnight.

What Profit First CAN Do is:

1.Help with the implementation of your financial strategy

Have you ever created a budget, a financial model or plan, and after a few weeks or months the whole thing is out the window because you didn’t stick to it? It’s totally normal and co common because it’s human nature! Many of us, me included, need some guidelines on spending to stick with the plan. Profit First is a strategy that can provide that for us.

2. Normalize Cash Flow

Rather than peaks and valleys in your cash accounts, rather then getting caught in the “debt cycle” where you pay off a bunch of debt with the cash on hand, only to run short on cash a few weeks or months later REQUIRING you to rely on Credit again, the Profit First cash flow strategy helps bring consistency.

3. Enable you to understand HOW and WHERE you are spending money in your business

Separating your cash into different accounts allows you to easily identify where you spend the most money, and if you have a tendency to 'overspend' or make purchases without thinking about the overall budget and ROI, or if you’ve been hanging on to money that could be reinvested into your business to help it grow.

a group coaching program member recently shared with me…

“I want to thank you for implementing Profit First in your coaching - it has really given me the confidence to buy materials and ingredients to prep for the holiday season! And your tools have been so helpful for assessing our new wholesale prices.”

Join us in the Profitable Food Business Community where we're talking Shipping Offers, Product Bundles + Discount Strategies for a Profitable Holiday Season!

If you haven't yet, complete your Profit Assessment to get a clear understanding of your numbers and make informed financial decisions as we head into the holidays. Learn more here.

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 8 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

“Setting your prices to achieve Product Profitability does not guarantee that you’ll achieve Business Profitability.”

If there is one critical concept that I want every food + beverage business owner to know, understand and accept this year, it’s the one I’ve written above. 

I’ve talked about it on The Good Food CFO podcast, The Real Food Brands podcast, The Food Biz Wiz podcast and even on a few webinars like the one I did with WeStock.

We’ve been misled on how best to approach our pricing. 

I got it wrong in my food business...

And when businesses get it wrong they can hit or exceed their sales goals but struggle to achieve profitability and they aren’t sure why.  When the cause goes unresolved or the source of the problem is unidentified, losses start to mount and the result can be the closure of the business.

So how do you ensure that you’re pricing your products for BUSINESS profitability? 

Follow my 3 rules for pricing:

1. Don’t calculate your prices using your per unit labor cost

2. You CAN’T successfully price your products in a vacuum

3. You CAN price your product with a simple formula, and your target ingredient cost %

Ready to learn more and get your products priced right? 

Click here to listen to The Good Food CFO podcast. 

Watch the video version of the podcast on YouTube, complete with helpful slides. 

I’m here to support you - so join us in the Profitable Food Business Community to share your questions.

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

Did you know that in January 2020 I transitioned from project-based work to 12-month programs? 

The decision came after working with several clients in 2018 and REALLY wanting to stay connected to them, to their progress and their business outcomes.  I had a hunch that long-term working relationships could produce better results (and that I’d like that type of work better too). In 2019 I continued my project work, and started beta-testing 12-month programs/services. 

The longer programs allowed for consistent check-ins, accountability and support that produced better financial and business outcomes for my clients, and gave them confidence around their numbers and decision making that simply couldn’t come with shorter project-based work.

In December 2019 I made it official and announced the new service. Two business owners signed on right away and worked with me monthly throughout the year. 

Additionally, in late February, our first member began the Financial Success Formula Program. 

Last week I compared the 2019 vs. 2020 financial outcomes for these 3 businesses, and… 

The results are pretty incredible! 

Some facts about the businesses:

1. 1 is a CPG brand utilizing a co-packer, 2 are food producers selling wholesale and direct to consumer

2. They are all young brands with 2019 annual sales between $60,000 - $140,000

3. 1 producer had consistent revenue across both years, the other two businesses had revenue growth of $95k and $172k.

4. ALL businesses had individual profit margin increases of 18% or more! 

The Stats! 

Average Revenue Increase 2019-2020 across all three businesses: $89,120

Average Year over Year Revenue Increase: 86.7%

Average Reduction in Cost of Goods Sold: 10% 
(from 48.64%-38.18%)

Average Profit Dollars earned:
2019: -$1,080.78
2020: $52,582.25

Average Profit Margin:
2019: -3.09%
2020: 23.80%

Average Year over Year Profit Margin Increase: 26.88%

I am looking forward to tallying new data each month as additional members complete their 12-month programs!

An important note:

2020 was not without its hardships, and Sarah Delevan Consulting saw clients and members struggle due to Covid-related restrictions and the harsh effects of the wildfires in Northern California.  A few members of our community closed their doors, moved their families, and paused to sort out IF and when they could return to business and what that business would look like. 

So much of what happened last year was out of their control, and it’s important to me that we acknowledge that as well as celebrate the successes of these three business owners.  

This data provided within this post is based on three business owners that actively worked with us monthly throughout 2020. 

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

Earlier this year when the pandemic had just forced us all indoors and flipped our worlds upside down, I turned to yoga in hopes of finding an indoor workout that would also (fingers crossed) help relieve some of the stress I was feeling. 

To my surprise and delight the daily yoga practice produced sore muscles (the good kind), a stress release that I could literally feel about 15 minutes into a yoga flow, and ideas that would help me in my business! 

Somewhere around month two the teacher posed the question,

“Where are you working harder than you need to?”   

At that moment I was in a plank pose trying to be mindful of the straightness of my neck and my spine, attempting to lift my knees up (whatever the heck that means) and actively push away from the ground while keeping a slight bend in my elbows... and she was asking where I was working harder than I needed to?! 

Then she said… 

… relax your face, that’s not helping you hold this pose any better.  And she was right. 

… relax your shoulders, that’s not helping you hold this pose any better.  And she was right.

… take a deep breath and realize where in your body you are exerting energy that you don’t need to in order to achieve the desired outcome. 

Holy crap. 

I took this question “off the mat” and thought about it as I went about my daily tasks. 

It started out with me realizing where I was holding tension in my body..

then transitioned to me noticing the actual energy that I was feeling inside when I had a long to-do list, was running behind schedule, or doing something out of my comfort zone - feeling anxious and like I needed to hurry wasn’t actually helping me move faster or perform better. I could let go of that anxiety. 

Then I applied the question to my business. 

It helped me re-focus on my goals and put my efforts toward the things that would have the biggest impact.

Asking that question gave me clarity to see what is mine to do, what could (and should) be automated, what should be delegated, what could be put on hold until the future, and what I could let go of completely.

And now I want to ask you…

Where are you exerting energy in your food business - mentally or physically - that is not ACTUALLY helping you reach your goals? 

Where are you working harder than you need to? 

Share your answer in the comments below, or join us in The Profitable Food Business Community!

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About the Author: Sarah Delevan is a Food Business Financial Consultant + Freelance CFO with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

Building something strong and sustainable requires a solid foundation, right?

What does the foundation of your food business look right now? 
Does it need strengthening?

I’ve learned that in business, it’s NEVER TOO LATE to start building that foundation. 
It’s the work I’m passionate about and I invite you to do!

Here are three things you can do to create, and solidify, the foundation of your business so you can achieve financial sustainability and profitability.

1. Record your financial data.

Yes, ALL OF IT.
Your revenue, your expenses, your costs. Make sure to update this information monthly.

2. Track your key metrics

Your key metrics include your revenue, cogs, operating + labor expenses, and review them as a percentage of your revenue. 

Check out my IGTV video on how this small change causes a big impact!

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3. Find your Financial Success Formula

This formula helps you see the revenue and cost target goals specifically for YOUR business. 
Watch The Conversation Series on Finding Your Financial Success Formula!⠀⠀⠀⠀⠀⠀⠀⠀⠀

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You started with your dream and are working hard to create a successful business.
Your hard work + a strong foundation will lead to profitability and sustainability so that you can continue to do this for years to come! ⠀⠀⠀⠀⠀⠀

find more details + support in building the foundation for a profitable food business in the the free Profitability Roadmap,

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

“I wish we could never ever see numbers so the creativity flows without the annoyance of the other side of the business..."                               

Do you ever feel this way? 
There is a very good chance you did not start your food business to focus on numbers.

No, you got into this because you're passionate about food and beverage, making delicious products and CREATING.

But the numbers are there and the numbers are important.
How many times has wondering about the state of your finances caused so much stress and worry that it actually caused a creative block? 

Here’s the thing: LOOKING at the numbers FREES you from the numbers.

When your food business financials aren’t in order your mind is ALWAYS on money.  Worrying, wondering, constantly checking in on your balances and your sales numbers … 

When you slow down and fully understand your numbers you become informed and empowered. 
You can implement systems that help your business thrive financially - without constant attention - and there is only a need to look at your financials once a week, or even once a month!  

You know what’s going on, you feel in control, and creativity starts to return. 

This is a transformation I see ALL the time.  

The freedom to be creative in your business comes when you embrace the numbers.

building a solid financial foundation is the first step.

Download the Profitability Roadmap + Checklist to ensure you’ve got a solid food business financial foundation in place, so you can understand your numbers and start building a more profitable food business!

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of The Profitable Food Business program. To learn more about Sarah and opportunities to build a more profitable food business Click Here.