S1E23 | Why Profit Has to Come First in a Trades Business with Mike Michalowicz

Most business owners were taught the same formula:Revenue minus expenses equals profit.Mike Michalowicz believes that formula is one of the biggest reasons entrepreneurs stay stuck financially.In this episode of Builders, Makers, Doers, Andy Bassett and Elliot Bassett sit down with Mike Michalowicz to talk about profit protection, owner psychology, operational discipline, and why so many businesses work hard without actually building financial resiliency.This conversation matters because a lot of trades businesses are generating revenue while still operating too close to the edge. Mike explains why profit cannot be treated as whatever is left over, and how taking profit first forces owners to confront pricing problems, overspending, weak marketing, and operational inefficiencies before they become bigger risks.In this episode:Why “Revenue - Expenses = Profit” creates behavioral problems for ownersHow Profit First exposes what is actually broken inside a businessWhy ordinary trades businesses often have the biggest opportunity to stand outWhat ambitious employees are really looking for from leadershipHow customer experience can outperform expensive marketingGuest:Mike MichalowiczCo-Founder, Entrepreneurhttps://www.linkedin.com/in/mikemichalowicz/https://mikemichalowicz.com/▶ Subscribe for more conversations with builders, makers, and doers solving real business problems in construction, manufacturing, and the skilled trades.Stay Connected & Follow the Movement• Follow Builders, Makers, Doers on LinkedInhttps://www.linkedin.com/company/ellerbrock-norris/• Grab a copy of Andy Bassett’s bookhttps://www.ellerbrock-norris.com/bookConnect with the HostsAndy BassettCEO, Ellerbrock-Norrishttps://www.linkedin.com/in/andy-bassett-cpcu-cic-7711853/Elliot BassettPresident and Partner, Ellerbrock-Norrishttps://www.linkedin.com/in/elliot-bassett-aip-cpcu-84499515/🌐 https://www.ellerbrock-norris.com/Chapters:00:00 — Why So Many Entrepreneurs Stay Financially Stuck02:35 — The Problem With the Traditional Profit Formula04:05 — Profit First Exposes What’s Actually Broken07:30 — Can Profit First Still Support Growth?10:40 — Why Employees Do Not Care About Your Revenue Goal16:35 — Open Books and Quarterly Profit Distributions18:30 — The Truth About Ambitious Employees22:00 — The HVAC Company That Replaced Ads With Experience24:00 — Why Ordinary Businesses Have the Biggest OpportunityWe often talk about the 10 impact areas of risk within a business. Now, you can join us for a FREE Resiliency Audit. In 30 minutes, we'll comb through your business, find where you may be at risk, and deliver a detailed plan on how to address the issues. Time to stop being reactive – and commit to being proactive. Schedule your audit today.  You clearly like learning how other businesses are building resiliency. From the people the hire to their safety practices, risk management strategies, exit planning and more. Now, you can do a deep dive on YOUR business – for free. We'll dive into your business and deliver a detailed report that shows you actionable next steps and potential cost long-term savings. Sign up today at www.ellerbrock-norris.com/resiliency.