Profit First + Planning for Seasonality

Profit First + Planning for Seasonality

Profit First is a cash flow system designed to help you build a sustainable business by paying yourself first. It flips the traditional model—where most business owners cover expenses first and hope there’s something left. We’ve used this approach at Stay With Terra for years (after initially reinvesting every dollar back into the business), and it’s how I run my coaching business too.

We allocate every dollar of revenue across specific buckets. Our current model includes: OpEx, Maintenance & Repairs, Taxes, Reserves, Owner’s Comp, Giving, and Team Bonuses.

Because summer is the slow season in Joshua Tree, we’ve intentionally built up reserves throughout the year to cover leaner months and fund improvement projects. This summer, we’re using that cushion to irrigate the front yard, refinish our decks, and service mini-splits at both properties—projects that require downtime and upfront investment.

We rely on historical data to shape our allocation strategy—working backward from our average monthly expenses to ensure we keep ~2x operating costs in our OpEx account and maintain a healthy buffer for maintenance. This allows us to weather seasonal dips and use slower periods strategically.

If you’d like a more detailed breakdown of our allocation model or the thinking behind it, let me know—I’m happy to include it in a future post.