Subcontractors in the Profit First Framework

profit first Mar 05, 2022

Hello, it's Kelley from Profit Scale Thrive with another Profit First FAQ.

Today's question - I have 15 part-time employees who do pet sitting for me. They are paid on a per-job basis. Are they considered to be subcontractors for the Profit First cashflow management system?

Yes, legally, they may be your employees, but that's a separate issue. For the Profit First framework, employees or contractors who are compensated on a per-project basis are considered to be subcontractors.

Again, this is only in the Profit First cash management system.

So you would subtract the cost of those individuals from your total income to find your Real Revenue.

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