“It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” - Robert Kiyosaki

Why Your Business Needs "Small Plates" for Big Financial Success:

Have you ever been to an all-you-can-eat buffet and found yourself going back for thirds, even though you were already full? Or maybe you've noticed that at tapas restaurants, you tend to be more mindful of what you order and savour each bite?

There's a psychology behind this that has fascinating implications for your business finances.

With that said, here are the 4 steps to allow you to start using small plates in your business today! 👊

The Buffet Problem in Business Finance

When all your business income sits in a single account—a big "plate"—it creates the financial equivalent of an all-you-can-eat buffet. You see a large sum and subconsciously feel you have plenty to spend. Before you know it, that promising bank balance has disappeared on various expenses, leaving nothing for profit, your salary, or that looming tax bill.

Sound familiar? You're not alone.

Most business owners operate with a single business account, watching helplessly as money flows in and out without a clear plan. This approach leads to three common problems:

1. Cash flow confusion: You're never quite sure if you can afford that new investment or expense

2. Tax-time panic: Suddenly realizing you need to find thousands for a tax bill you knew was coming

3. Profit amnesia: Consistently forgetting to prioritize profit until it's too late

Enter the "Small Plates" Approach

What if I told you there's a simpler way to manage your business finances—one that works with your psychology rather than against it?

Inspired by Mike Michalowicz's "Profit First" book, we've developed our own unique take on "small plates" approach at Cash Clarity. While we embrace the core principles of Profit First, we've tailored and enhanced the methodology specifically for the UK small business owners we work with.

Just like a tapas restaurant serves smaller portions that make you more mindful of what you're consuming, our approach of dividing your business income into separate accounts (or "small plates") creates boundaries that lead to better financial decisions.

Here's how it works in practice:

STEP 1: Create Your Plates

Set up multiple bank accounts (or "spaces" if you use a bank like Monzo, Starling, or Mettle). At minimum, you need:

• Income account (where all money comes in)

• VAT Account

• Profit account

• Owner's Pay account

• Tax account

• Operating Expenses account

STEP 2: Serve in the Right Order

When money comes into your Income account, allocate it to your other accounts in this specific order:

1. VAT first: This isn't your money - you are just collecting it on behalf of HMRC. Get it out of there up front!

2. Profit: Even if it's just 1% to start with, allocating to profit changes your entire mindset - you should be rewarded for the risk you take running your own business

3. Your pay: Pay yourself a fair wage before other expenses

4. Tax: Set aside what you'll need for upcoming tax bills

5. Operating expenses: What remains is what you have available to run your business

This sequence isn't random—it's designed to prioritize what truly matters in your business.

STEP 3: Remove Temptation

Here's where the psychology gets interesting. For accounts like VAT, Tax and Profit that you don't want to touch, consider using a completely different bank. Remove the app from your phone. Make it slightly inconvenient to access.

One Cash Clarity client told me: "Keeping my tax money in a separate bank without the app on my phone was a game-changer. I stopped seeing it as 'available cash' and started seeing it as 'already spent.'"

STEP 4: Create Your Rhythm

Consistency beats perfection every time. Set a regular day—whether weekly or monthly—to review your income and allocate it to your small plates. This might feel like extra work initially, but most of our clients report that it takes just 15 minutes once it becomes a habit.

Real-Life Transformation

Let me tell you about Toni (name changed), a gym owner who came to us constantly stressed about money despite earning a solid income from her business.

"I was making good money, but it never seemed enough. I'd look at my account on Monday feeling flush, then by Friday wonder where it all went. And don't even get me started on VAT deadline - pure panic every time."

After implementing the small plates system:

"For the first time in three years of business, I paid my VAT bill without breaking a sweat. I've given myself a consistent salary every month, and I even took my first profit distribution last quarter. The peace of mind is worth so much more than the 30 minutes a week it takes me to manage this system."

Start Small for Big Results

You don't need to implement this entire system overnight. Many of our clients start with just one additional account—usually for VAT—and expand from there as they see the benefits.

The goal isn't perfection; it's progress. Even a small step toward better financial clarity can create a ripple effect throughout your business.

Your Next Step

This week, I challenge you to take just one action: Open a separate account specifically for your profit. Then, take 1% of your income and commit to moving that tiny percentage with each payment you receive.

If you can run your business on 100% of your sales you can run it on 99%. It will help form the habit and show you the power of growth!

Interested in learning more about creating clarity in your business finances? Our next Cash Clarity Catalyst programme starts in April. It's a 12-week group course where we'll guide you through implementing our unique take on the Profit First methodology with our small plates system step-by-step, alongside other business owners on the same journey. If you've read Mike Michalowicz's "Profit First" and want a tailored approach for your specific business with UK-focused guidance, this is the perfect next step. Pop to our website https://cash-clarity.co.uk/ccc for more information.