Episode 5: How the Profit First System Can Transform Your Business Finances

Are you generating six or even seven figures in your business but still feeling broke? In this episode of the Savvy or Surrender Podcast, host Stephen Young, a certified Profit First Professional, dives into the Profit First System by Mike Michalowicz — a proven framework that helps business owners take control of their cash flow, pay themselves consistently, and build lasting profitability.

Stephen breaks down how simple percentage-based allocations can eliminate the “feast or famine” cycle, sharing a real-life story of a roofing client who went from chaos to clarity by following Profit First principles. Learn how to create separate accounts, control marketing budgets, and build financial clarity — all while ensuring your business truly serves you.

Sponsored by: SavvyCEOAlliance.com — Join a free community for business owners learning profit-first principles, tax strategies, and marketing systems that create long-term success.

Show Notes & Timestamps

00:00 – 00:08 | The Financial Struggle of Success
Stephen opens with the question every entrepreneur has asked: Why am I making six or seven figures and still broke?

00:08 – 00:31 | Introduction to Profit First
Learn about the Profit First System by Mike Michalowicz — a book that helps business owners prioritize profit and pay themselves first.

00:36 – 00:43 | Welcome to the Savvy or Surrender Podcast
Host Stephen Young introduces Episode 4.

00:43 – 01:09 | Sponsor: Savvy CEO Alliance
Discover SavvyCEOAlliance.com — a free business community offering workshops, trainings, and insights on profitability, taxes, and marketing.

01:21 – 02:09 | Case Study: The Roofing Client
Stephen shares how one roofing client went from “chaos to clarity,” struggling with overspending on marketing despite strong profits.

02:09 – 02:47 | How Profit First Solves Overspending
Learn how the Profit First method can create clarity with expense management by allocating specific funds for categories like marketing.

02:47 – 03:15 | Practical Example: The 5% Rule
Stephen explains how setting aside 5% of revenue for marketing builds discipline and control, preventing unexpected cash shortages.

03:15 – 03:39 | Real-Time Budgeting Example
He walks through a monthly allocation example, showing how to adjust ad budgets based on actual available cash.

03:39 – 04:18 | Long-Term Budgeting and Consistency
Stephen discusses how tracking 12 months of averages allows business owners to plan consistent, predictable spending.

04:20 – 04:52 | Helping Clients Find Clarity
Learn how Profit First principles helped a roofing client transform their financial outlook and gain full clarity on ad spending.

04:52 – 05:11 | Closing Thoughts & Feedback Invitation
Stephen encourages listeners to like, subscribe, and email feedback at podcast@savvytechstrategies.com to help improve future episodes.

05:11 – 05:17 | Final Message
Stephen wraps up with a reminder to “stay savvy and never surrender.”

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Savvy or Surrender Podcast – Episode 4

Episode Description

The IRS doesn’t care about your excuses—they care about compliance.

In this eye-opening episode of the Savvy or Surrender Podcast, host Stephen Yang dives into the hidden truths about tax penalties, audits, and how procrastination can cost you thousands. From shocking client stories to the five biggest IRS red flags, Stephen shares practical strategies to keep you compliant, reduce stress, and protect your profits.

You’ll learn why messy bookkeeping, co-mingling accounts, and ignoring letters can destroy your business, and how taking proactive steps—like setting aside tax funds and filing on time—keeps you ahead of the IRS and your state.

Whether you’re a business owner, freelancer, or just trying to stay tax-smart, this episode gives you the tools to act now instead of paying the price later.

Episode Timestamps

00:50 – The IRS doesn’t care about excuses—only compliance. Why you shouldn’t put off filing and how penalties stack up fast.
01:30 – Real client story: 7 years of unfiled taxes and tens of thousands in penalties.
03:17 – Why the “taxes aren’t legal” argument won’t save you and what really gets you audited: the top 5 red flags.
07:00 – Keep up with your proof and more red flags.
09:53 – Schedule C vs. S-Corp: Which is more likely to trigger an audit?
12:41 – Filing on time vs. being truly compliant.
14:17 – How to proactively prepare for taxes with profit-first principles.
15:46 – How to stay out of trouble with the IRS or your state.
22:03 – Stephen’s challenge for listeners.

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In Episode 3 of Savvy or Surrender, host Steven Young exposes the real cost of “playing it safe” in business.

Too many entrepreneurs think they’re protecting themselves by delaying bookkeeping, skipping quarterly tax payments, or waiting until it “feels right” to hire help. In reality, those decisions quietly drain profits, create chaos, and can even bankrupt a thriving business.

Steven shares:
✅ Real-world examples of entrepreneurs who lost it all by avoiding IRS compliance
✅ The danger of co-mingling funds, avoiding payroll, and putting off S-Corp/LLC setup
✅ Practical “Savvy Moves” to build long-term success, like Profit First, hiring a bookkeeper early, and setting up systems that scale

👉 If you’re ready to stop surrendering and start scaling, this episode will give you the clarity and tools you need to grow smarter, not riskier.

📌 Chapters / Timestamps:
[00:00] Playing it safe vs. making bold business moves
[00:40] Welcome to Savvy or Surrender with Steven Young
[02:19] The car brake analogy: how safety can quietly damage growth
[03:40] Surrender move: waiting until tax season to handle bookkeeping
[04:34] Stashing cash with no plan & co-mingling funds
[05:06] Avoiding payroll and skipping quarterly tax payments
[06:04] Case study: $300K flooring business bankrupted by IRS debt
[07:15] The myth of “I’ll do it when I have time”
[08:00] Sole proprietor fears: avoiding S-Corp or LLC setup
[08:35] Flipping the script: what savvy moves look like
[08:44] Profit First principles: allocating funds weekly
[09:19] Sneak peek: next week’s episode on Profit First
[10:35] Hiring a bookkeeper before you think you’re ready
[10:46] Why Steven built Savvy Tax Strategies for small businesses
[12:14] If you are making 50K a year, become a S Corp if…
[15:43] Quit treating your business like a hobby and not a business
[20:00] We can help make your business less of a mess

Hashtags:

#SavvyOrSurrender #SmallBusinessTips #ProfitFirst #EntrepreneurLife #Bookkeeping #TaxStrategy #BusinessGrowth #IRSCompliance #MoneyManagement #StartupLife

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