The Pizza Principle™: Protect Profit by Design, Not by Chance
- James C Foo Leong
- Jun 28
- 2 min read
Updated: Jun 29
Why You Should Not Treat Profit like a leftover
John couldn’t understand why his company was constantly under pressure. Revenue was growing.
He’d say things like:
“We’ve paid for salaries, rent, utilities… there’s not much left, but at least we’re covering costs.”
However, when we looked closely, one thing stood out.
Profit was always what came last.
The business was running at full tilt. Financially, it was barely moving forward.
Start With the Slice You Want
This was John's mindset at work:
“I’ll pay all my expenses, and whatever’s left — that’s my profit.”
But if you wait until the end to carve out profit, there’s rarely anything left.
Why? Because you allow expenses to expand.
Instead, visualise what I call the The Pizza Principle™.
Decide the size of your profit slice first. Then build everything else around it.
3 Practical Takeaways
1. Decide the number. Set a target profit margin. Make it visible and real.
2. Reverse-engineer your costs. Allocate your budget after protecting your profit slice. This forces strategic trade-offs early.
3. Stick to your structure. Treat that slice as non-negotiable. Review regularly to make sure you haven’t slipped back into “leftovers mode.”
The Pizza Principle™ in Personal Finance
Warren Buffett once said:
“Do not save what is left after spending; instead spend what is left after saving.”
That’s the same idea.
In personal finance, it’s called “paying yourself first.” You don’t wait to see what’s left. You start by setting aside what matters.
Whether you're running a business or managing a household, the logic holds.
Don’t treat profit or savings like leftovers. Carve them out first. Then adjust the rest of the pizza.
Final Thought
What would change in your business or your life if you treated profit or savings like a slice to protect, not a bonus to hope for?
About me:
Most finance workshops start with numbers. I start with stories.
Because for non-finance professionals, financials can feel like a foreign language.
If you’ve ever wished someone would just explain it clearly, please reach out.
James C Foo Leong
*The Financial Storyteller*
Author of Once Upon a Balance Sheet
Ready to turn financial confusion into clarity?
👉 If Once Upon a Balance Sheet resonates with you, we can change the way you see numbers.
