Purpose-driven businesses often treat profit as what remains after the mission is funded. They invest heavily in impact initiatives, pay their teams, cover operating costs, and hope something is left over. This creates a dangerous pattern where the mission thrives while financial stability deteriorates. Eventually, cash flow constraints force difficult choices between values and viability.
Rachel Bernier-Green, founder of EJ Consortium and a mission-driven entrepreneur with over 20 years of experience in strategic finance and operations, has worked with purpose-driven leaders at firms including KPMG, PwC, and State Farm. She founded impact-driven enterprises like Lane’s Bake Shop, recognized for transforming communities through business. She has learned that sustainable impact requires profitable foundations, not choosing between the two. “You don’t have to choose between profit and purpose,” Bernier-Green explains. “With the right systems, you can have both and scale with confidence.”
Flip the Formula to Prioritize Profit
Traditional accounting says sales minus expenses equals profit. This makes profit the residual, the amount left after everything else is paid. For mission-driven businesses, mission expenses always feel more urgent than profit, so profit rarely happens. Profit First flips the formula. Sales minus profit equals expenses. This is a structural change that forces discipline by guaranteeing profit is set aside before expenses are paid.
“By setting aside profit first, you guarantee your business remains financially healthy while still serving your mission,” says Bernier-Green. “This method puts your values and sustainability on equal footing and removes profit from the leftover category.” This formula shift creates immediate behavioral changes. Teams question expenses more rigorously because the budget is defined by what remains after profit allocation. Spending decisions improve because resources are finite by design. Financial stability builds automatically because profit accumulates regardless of how busy operations become.
Use Separate Accounts to Create Clarity
Profit First works like an envelope system. Set up five accounts: income, profit, owner’s pay, taxes, and operating expenses. Each time revenue comes in, immediately allocate it based on predefined percentages. For example, 5% to profit, 35% to owner’s pay, 15% to taxes, and the remainder to operating expenses. “This structure prevents overspending and brings clarity to your cash flow,” Bernier-Green explains. “Instead of guessing if you can afford something, you know because the money is clearly earmarked.” Separate accounts make allocation visual and automatic rather than requiring constant mental accounting.
Start Small, Then Optimize
The goal is progress, not perfection. Do not worry about achieving ideal percentages from day one. Instead, start by setting small allocations. Just 1% to profit is a win if you have never set anything aside before. Over time, review and adjust allocations to align with your long-term vision.
At EJ Consortium, Bernier-Green guides mission-driven businesses through this transition, helping them not only stabilize finances but design systems that allow scaling without losing their soul. The key is building the habit first, then optimizing the structure as the business grows. As the habit solidifies, percentages can increase. A business that starts with 1% profit allocation can move to 3%, then 5%, then higher as operations adjust. Each increase builds financial stability without creating an operational crisis.
Profit Fuels Purpose
Implementing the Profit First method delivers more than a healthier bottom line. It provides peace of mind, the ability to invest in teams, and the freedom to grow impact without financial anxiety. Profit is not the opposite of purpose. “Profit fuels purpose,” Bernier-Green concludes. “With the right systems, you don’t choose between mission and financial health. You build both, and that’s how you create scalable, lasting impact.”
Connect with Rachel Bernier-Green on LinkedIn for insights on implementing the Profit First method for scalable impact.
