Nathan Sykes

March 28, 2021

Philosophy 1 of 3: Profit First

I just realized that with our new website at Howdy Interactive, we're removed the page that lists our core philosophies of business. Over the next three days, I'm going to store them here in HEY World for prosperity. These philosophies are really what help guide us as a company. Above all, it's important for us to understand - it's just money! We're buying and managing companies. We're not building rockets. We're here to have a good time, and make some cash. Let's treat it as such.

Without further ado, our first core philosophy, Profit First:

At Howdy, we only measure one key performance indicator – profit. Our smaller companies may measure KPIs to help them make more profit, but at the corporate level, all of our conversations revolve around increasing our bank account. Profit per demographic, profit per geographic area, profit per product, profit per income level, profit per marketing avenue, etc. You get the idea.

Profit is fantastic for a number of reasons, the first of which being true financial freedom. The moment you make $1 in profit, you’re no longer relying on anyone else. No investors and no bad clients. We have the freedom to work with whoever we want, hire whoever we want, and do whatever we want, because at the end of the day we know that we’ll still have cash in the bank.


We’ll never have to borrow money, or sell off pieces of our company to get the cashflow we need. It’s very simple – if we can afford it, we do it. If we can’t, we wait until we’ve generated enough profit so we can do it.

Profit also encourages higher performance. Every single person that works at Howdy is on a performance-based pay plan, which means when the company does well, they do well. This causes our team to care more about the work they’re doing, and to go above and beyond to drive profit, because they’ll get a share of it. There are no glass ceilings at Howdy Interactive; anyone has unlimited earning potential across our family of companies.

Economics 101 states that a healthy business is one that makes more money than it spends. At Howdy, we used to spend a ridiculous amount of time on valuations, fake earnings, and “on-paper” revenue and potential. We’d get these large, inflated numbers with no money in the bank to show for it.

Now, we dedicate 0 hours a year to that bullshit, and instead base all of our decisions on the Profit First accounting system created by Mike Michalowicz. Our decisions are based on real, actual figures taken from our incoming payments and bank balance. We set aside money from every incoming transaction to account for profit, taxes, and owner’s compensation automagically. Profitability is built into our business from day one.

Finally, profitability is cool. We like taking trips. We like eating at great, expensive places. We like spending money on useless junk. There’s a plush moose in Nathan’s house – one of those five feet ones? $179. You wouldn’t be able to spend money on stuff like that unless it was your money entirely. Imagine your investors learning you spent their money on a life-size plush moose.