Profit First by Mike Michalowicz
Genre: Nonfiction – Business
Length: 224 pages
Audiobook Length: 8 hours and 35 minutes
First Published: 2014
Conventional 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 to flip 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 will transform their businesses from cash-eating monsters to profitable cash cows. Using Michalowicz’s Profit First system, readers will learn that:
· Following 4 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 has the game-changing roadmap for any entrepreneur to make money they always dreamed of.
Quotes from Profit First
A financially healthy company is a result of a series of small daily financial wins, not one big moment. Profitability isn’t an event; it’s a habit
Putting your nose to the grindstone is a really easy way to cover up an unhealthy business. We think that if we can just work harder, longer, better—if we can just hold out—something good will happen one day.
We assume that multimillion-dollar companies are turning big profits, but it’s rare to find a truly profitable business.
About Mike Michalowicz
Mike Michalowicz is a serial entrepreneur, having founded and sold two multi-million dollar companies. He invented the Profit First accounting method to help entrepreneurs run profitable businesses. Currently he runs two different business ventures as well as being a keynote speaker. He has authored six business books: Fix This Next, Clockwork, Surge, The Pumpkin Plan and The Toilet Paper Entrepreneur, and Profit First. Visit the author’s website →