Using Profit First to Purchase Commercial Property
How a $5M Business Uses Profit First to Save $250K for Commercial Property Investment (and $70K+ More in 3 Months)
Below is a case study from one of our trusted business partners, Victor Zhou of YourCFO Partner, a business advisory practice, specialising in the construction space.
Many business owners struggle to turn profits into wealth-building investments. They reinvest everything into the business, hoping for future rewards—but too often, money disappears into overhead, unexpected costs, and fluctuating cash flow.
That’s where Profit First comes in.
By treating profit as a non-negotiable expense and structuring cash flow strategically, a business doing $5M in revenue can carve out a $250K deposit for a commercial property investment—without disrupting operations.
Even better? By the time the deal is finalised in 3months, the business has already saved another $70K+, setting the stage for the next opportunity.
Here’s how it works.
Step 1: Establish the Profit First Structure
Instead of running the business on “leftover profits,” we flip the script. Every dollar has a job.
For a $5M revenue business, the allocations typically look like this:
✅ Profit: 5% (Target: $250K)
✅ Owner’s Pay: 15–20%
✅ Taxes: 15%
✅ Operating Expenses: 50–55%
The profit account gets funded FIRST, before paying any expenses. This ensures savings are built automatically.
Step 2: Automate the Profit Transfers
To hit the $250K savings goal in a structured, stress-free way, the business allocates:
✅ $42K per month (~0.83% of revenue) into a separate "Property Investment" account
✅ This is done before paying expenses, forcing financial discipline
✅ By the time the deal closes in 6 months, the full $250K is ready to go for the deposit.
Step 3: Maintain Business Cash Flow While Saving for the Next Deal
Once the first property deal is locked in, the business doesn’t stop saving. Because Profit
First is a habit, money continues to flow into the profit account.
✅ The business maintains the 5% allocation, ensuring surplus cash builds up
✅ In just 3 months, another $70K+ is saved—setting up the next investment
opportunity
✅ This approach removes the stress of large lump-sum savings while keeping the
business financially strong
Step 4: Leverage Investments for Long-Term Wealth
With the first commercial property secured and another $70K+ saved, the business now has options:
✔️ Expand the portfolio by acquiring more property
✔️ Use rental income to offset business costs
✔️ Reinvest profits into further growth
By consistently applying Profit First, business owners stop chasing revenue and start turning profits into tangible wealth.
Your Business Can Fund Investments—Without Cash Flow Stress
Most businesses make enough money to invest—but few have the system to ensure
profits don’t vanish into expenses.
Profit First makes saving for commercial property predictable and painless.
In just 6 months, a $5M business can secure a $250K deposit. And in the next 3 months, it can save another $70K+—without relying on unexpected windfalls.
The key? Profit is planned, not accidental.
Ready to apply this strategy to your business? Start today, and in six months, your profits could fund your first (or next) investment property.
Feel free to reach out to Victor Zhou directly to discuss your own opportunities and business strategy:
Mobile: 0430 326 741
Website: www.yourcfopartner.com.au
Disclaimer: This is not financial advice from True North Buyer’s Advocate. We collaborate with business specialists and occasionally share their case studies and insights to educate our audience. All advice shared is general in nature—please consult the specialists directly for a tailored strategy that aligns with your goals.