Profit first by Mike Michalowicz: Transform your business from a cash-eating monster to a money-making machine

Profit first by Mike MichalowiczGet the book: https://amzn.to/4iVq63IConventional accounting uses the logical (albeit flawed) formula: Sales - Expenses = Profit. The problem is, businesses are run by humans, and humans aren’t always logical. Serial entrepreneur Mike Michalowicz has developed a behavioral approach to accounting that flips the formula: Sales - Profit = Expenses. Just as the most effective weight loss strategy is to limit portions by using smaller plates, Michalowicz shows that by taking profit first and apportioning only what remains for expenses, entrepreneurs can transform their businesses from cash-eating monsters to profitable cash cows.Using Michalowicz’s Profit First system, listeners will learn that:* Following four simple principles can simplify accounting and make it easier to manage a profitable business by looking at bank account balances.* A small, profitable business can be worth much more than a large business surviving on its top line.* Businesses that attain early and sustained profitability have a better shot at achieving long-term growth.With dozens of case studies, practical step-by-step advice, and his signature sense of humor, Michalowicz offers a game-changing roadmap for any entrepreneur to make the money they’ve always dreamed of.Here are some notable quotes from “Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine” by Mike Michalowicz:* “Profit is not an event. It’s a habit.”* “If you take your profit first, your business will become permanently profitable.”* “The health of your business is not determined by the size of your top line but by the size of your bottom line.”* “Constraints are the key to innovation and growth.”* “What you focus on grows. What you ignore dies.”* “Your business is meant to serve you, not the other way around.”* “A profitable business can do more than survive—it can thrive and growsustainably.”* “When you run your business on what’s left over, it forces you to be frugal, resourceful, and innovative.”* “The key to financial success is not making more money; it’s keeping more of the money you make.”* “Take your profit first, because you deserve it.” This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit ideas.nextbigwhat.com/subscribe