Tactical insights for first-time founders to outsmart the burn, the churn & the breakdown.

Hey Founder,

Let’s talk about something most early-stage companies overlook:

Profit.

It’s not a finish line. It’s not something you “earn the right” to focus on later.

It’s the oxygen your business needs from day one.

Google and Facebook could afford to wait. You can't.

And the most resilient founders know that.

They design for margin early.

They make every operational and financial decision count.

Not because they’re risk-averse, but because they want staying power.

In this issue, we’re unpacking the Profit-First mindset, not to clip your wings, but to help you scale smarter and last longer.

Let’s dive in.

Let’s get real:

Growth is easy. Profitable growth is the real challenge.

Look at Atlassian, the company behind Jira and Trello.

When Mike Cannon‑Brookes and Scott Farquhar launched in 2002, they bootstrapped with a $10,000 credit card.

Their first customer? American Airlines. They faxed in a purchase order.

No sales team. No burn. Just a self-serve product and a relentless focus on profitability.

They reinvested revenue, scaled sustainably, and when they went public in 2015, they did it without compromising their model or their margins.

Now, take Mailchimp.

It started as a side project within a web agency—not a “next unicorn” pitch, just a tool to help clients send better emails.

The founders kept their day jobs, built patiently, and only went all-in when the numbers backed it.

By 2009, they launched a freemium model, not as a gamble, but after years of customer data.

Result? User base 4x’d. Profits 6x’d.

In 2021, they sold to Intuit for $12 billion. Fully bootstrapped. Zero outside capital.

What ties these stories together?

These founders didn’t treat profit as a reward for success.

They treated it as a requirement for scale.

See this LinkedIn post for more founder examples. 

You stop chasing vanity metrics.

You start designing for resilience.

Most founders follow this formula:

Sales – Expenses = Profit

Which basically means: “Let’s hope there’s something left.”

But Profit-First thinking flips it:

Sales – Profit = Expenses

You take your margin first, then build the business around what’s left.

This small shift has a big impact.

It forces smarter product decisions, tighter operations, and clearer trade-offs.

It’s no longer: “Can we build this?”

It becomes: “Can we afford to build this, and will it pay for itself?”

That mindset is powerful.

You build with a backbone, not bloat.

Every feature, every hire, every spend earns its place.

It’s what Mailchimp did: they skipped the fundraising frenzy, charged from day one, and used customer revenue, not VC money, to grow.

That discipline helped them build a $12B business on their own terms.

1. Set Up Your Profit System (Yes, with Real Bank Accounts)

Open 5 checking accounts:

INCOME → All revenue lands here

PROFIT → Your reward, non-negotiable

OWNER’S PAY → Your salary

TAX → For the government (avoid surprises)

OPEX → What’s left to run the business

Use your current account as OPEX. Rename each one clearly. Only pay bills from OPEX.

2. Create “No-Touch” Holding Accounts

Open two more accounts, Profit Hold and Tax Hold, at a different bank.

No cards, no logins, no easy access.

Twice a month, transfer 100% of funds from Profit and Tax into these.

3. Start Small, but Start Now

Move 1–10% of every payment into your Profit account.

Even 1% builds the habit.

Set a recurring reminder on the 1st and 15th. Automate later, manual means you're paying attention.

4. Build Something Sellable, Not Just Viable

Launch the smallest version of your offer that someone will actually pay for.

Use a waitlist, landing page, or invoice to validate demand.

Only add features when revenue justifies them.

5. Ruthlessly Prioritize Distribution

If you can't sell it, don’t build it.

Test demand first: landing pages, pre-orders, or real conversations.

Aim for validation from at least 10 real buyers before scaling.

6. Bonus: Cut to Fit, Then Cut Again

Audit everything. Cancel unused tools, downgrade where possible, delay hires.

Ask: “Can we do this for half?”

One founder I worked with stayed profitable for 8+ years by capping headcount at 10.

“If margin can’t fund it, it waits.”

Last week, someone asked me:

If your team avoids numbers, it’s usually one of three things:

– They don’t feel ownership

– They’re unclear on what actually drives outcomes

– Or they’ve never seen how their numbers connect to the bigger picture

Here’s what I’ve seen work (fast):

1. Set the Frame

Pick 3–5 core metrics that drive outcomes.

Not busywork. Not noise.

Metrics that matter.

2. Make It a Ritual

Every Friday by 4 PM, each team lead posts this in Slack, Notion, or email:

→ Metric

→ Actual

→ 1-line insight

→ Next step

No dashboards. No decks. Just clarity.

3. Lead from the Front

Post your numbers first.

Do it consistently. No ego, no fluff.

When your team sees you owning your data, they’ll follow.

This isn’t about tracking for the sake of tracking.

It’s about alignment.

Because when you don’t know the story your numbers are telling, you risk losing the plot altogether.

Got a friction point like this? Hit reply. I’ll help you unpack it.

Send it my way, just hit reply.

📂 Profit First Tools

Built on the framework from  Profit First by Mike Michalowicz this tool gives you a brutally honest snapshot of your business’s financial health, based on real cash flow, not accounting theatre.

You’ll calculate your Real Revenue, spot overspending patterns, and compare how you’re allocating profit, pay, taxes, and expenses against benchmarks from healthy, margin-first businesses.

The best part?

You’ll see your Delta, the gap between where you are and where you should be, so you can adjust quickly and intentionally.

This isn’t just theory.

It’s a practical, plug-and-play upgrade for your margins, plus extra resources from Mike to help you embed profit-first habits into your operations.

Before You Go…

You don’t need perfect spreadsheets, pristine systems, or a finance background to begin.

You just need one thing:

A small, non-negotiable promise to yourself

Profit comes first.

Because profit isn’t just what’s left over.

It’s momentum.

It’s breathing room.

It’s insurance.

And more than anything

It’s a habit. A way of building.

And that? That’s the real moat.

See you next Thursday,

—Mariya

Hit reply and let me know. I read every single one (for real).

Hey, I’m Mariya, a startup CFO and founder of FounderFirst. After 10 years working alongside founders at early and growth-stage startups, I know how tough it is to make the right calls when resources are tight and the stakes are high. I started this newsletter to share the practical playbook I wish every founder had from day one, packed with lessons I’ve learned (and mistakes I’ve made) helping teams scale.

Mariya Valeva

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