Unraveling the Profit Mystery: Meet the PAM Method!

Hey, Fellow Creator!

Running a product-based business can sometimes feel like you’re an artist stuck in a mathematician’s world. Between crafting beautiful products and trying to make sense of all the numbers, profit can feel as close as Pluto.

If you’ve ever looked at your creations and wondered, “Where’s all the money magic happening?” – it’s time to get to know PAM: Pay, Account, and Maintain.

PAM came about when I was staring down the barrel of $12k in debt at the beginning of 2023, and I just didn’t know where to start.

After hours and hours of reading and videos and implementing, I took the best pieces and put them to work for me. PAM has allowed me to pay off $6,000 in just 9 months, with the remaining set to be paid off by the end of 2023.

Let’s dive into the method, shall we?

Every time that “Cha-Ching!” comes through from Shopify or Etsy, it offers you one more opportunity to pay yourself for your dedication.

P – Pay Yourself First

Imagine a world where you are paid first from your business. No longer are you an afterthought, a “nice to have” in terms of payment.

NO. You are the very first. After all, you’re the heart, soul, and hands creating all those amazing products you sell. From now on, you pay yourself before you take any money and put it back into the business.

Your Worth in Gold (and Dollars)

When you value and prioritize paying yourself from this business you’ve poured your blood, sweat, and tears into, amazing things will happen. It’s a mindset shift that pulls back from “I’m reinvesting in the business,” or “It’s a business expense,” to “Hmmm… do I want to add this additional subscription, or do I want to prioritize paying myself?”

Every time that “Cha-Ching!” comes through from Shopify or Etsy, it offers you one more opportunity to pay yourself for your dedication.

A – Account for Every Expense

Aaand this is roughly where everyone’s eyes glaze over. Hold tight- I promise it’s going to be worth it.

Accounting or budgeting is NOT why you started your product business, I’m willing to bet. You just want to have the numbers take care of themselves. Then, you can focus on selling the beautiful pottery, woodworking or jewelry you fell in love with.

HOWEVER, when you account for every expense and budget your money proactively, you’re able to gain financial clarity in a way that just doesn’t happen when you’re doing your bookkeeping.

Every Penny’s Tale

This happens with a combination of something called “Zero Based Budgeting” (more on this below) and non monthly expenses. This means you give each and every dollar a purpose to serve in your business, including things that you need to pay for in three, five, eleven months. (Need a list of common expenses you should be budgeting for? I’ve got you covered.)

If you’ve overspent, it doesn’t mean anything about you, about your ability to run a profitable business. It simply means that you are HUMAN.

M – MAINTAIN A WEEKLY PULSE

In the unpredictable world of entrepreneurship, adaptability is a must. This is why looking at your numbers on a weekly basis is also a must. Here’s the thing- it is not reasonable to think that you’re just going to be spending the same amount of money each month, ESPECIALLY as a product-based business. That’s why so many (including my first attempts at a business budget) fail so spectacularly. Because we treat them as a set in stone thing, and not a living, breathing document.

The Weekly Financial Jam Session

In zero-based budgeting, we’re only working with the cash we have on hand. Like literally, “I could go and take the money out of the bank today” kind of money. Because of this, you can trust your numbers and that you actually have X amount for your Canva subscription or your monthly order of gold chains for your jewelry.

What happens if I overspend?

Well, this is where you put your big boss hat on and make some shifts in your money. If you’ve overspent, it doesn’t mean anything about you, about your ability to run a profitable business. It simply means that you are HUMAN. We all overspend–we’re not robots. Simply go into your budget and find a spot that has money in your operating expenses and move money from there into the overspent category.

COACHING: A FRIENDLY HAND AMIDST THE NUMBERS

Stepping into the world of PAM budgeting can feel like you’re navigating a maze all by yourself. But what if you had a GPS, a trusty compass, or even better — a seasoned adventurer who knows all the shortcuts to the hidden treasures?

Your Profit Supporter

A money coach who speaks the language of product-based business is more than a guide. They’re there to help teach and support as you untangle the web that is your money system and mindset. They are there to celebrate you and with you as you accomplish big things in your business. 

LET’S WRAP IT UP

The PAM method isn’t your traditional, stuffy financial doctrine. It’s a friendly handshake, a warm hug, and a high-five to creators looking to turn their craft into cash, their art into assets, and their passions into profits.

And if you’re thinking, “Can I really juggle paintbrushes in one hand and profit margins in the other?” – with PAM and a money coach by your side, it’s not just possible; it’s a delightful dance you’re about to master.

READY TO JUMP IN?

Step into a realm where creativity and cash flow twirl in perfect harmony. In the landscape of Profit for Product, every masterpiece you craft is a hop, skip, and a jump closer to your financial dreams. Ready?