Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine (Entrepreneurship Simplified)
Original price was: $29.00.$13.55Current price is: $13.55.
Price: $29.00 - $13.55
(as of Sep 26, 2024 09:49:41 UTC – Details)
Author of cult classics The Pumpkin Plan and The Toilet Paper Entrepreneur offers a simple, counterintuitive cash management solution that will help small businesses break out of the doom spiral and achieve instant profitability.
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.
From the Publisher
THREE STEPS TO PERMANENT PROFITABILITY
CHANNEL BEHAVIOR
Most entrepreneurs run their business via “login and see what you’ve got – bank balance accounting.” If you do that, too… congratulations! Profit First was made for you.
Profit First is a cash management system that works with your bank accounts. The do-it-yourself process pre-allocates money to its intended use before you spend it. When you log into your bank, you will know what money is available for what purpose.
REMOVE TEMPTATION
Just like the 401k has been the greatest personal savings mechanism in US history, Profit First leverages the same “pay yourself first” principle. First, your business will deduct its profit and transfer the money away from your primary bank to prevent the business from “borrowing from it.”
With the temptation to run your business from its profits removed, you will automatically operate your business in a fiscally sound manner.
REWARD QUARTERLY
As profit accumulates, the owner(s) of the business will take a quarterly profit distribution. The profits are not “plowed back” or “reinvested” into the business – or they should be reclassified as expenses. Instead, the profits are used to reward the owner(s).
Some businesses have debt, of course. Using the Profit First system, portions of profit distributions can be used to pay off chunks of debt, but some must remain to reward the owner(s). With Profit First, you win. Every quarter.
ABOUT MIKE MICHALOWICZ
After building and selling two multi-million dollar businesses, Mike Michalowicz (pronounced mi-‘kal-o-wits) started his third company and… lost his entire fortune. Then he started all over again, driven to find better ways to grow healthy, strong companies. Mike has devoted his life to the research and delivery of innovative entrepreneurial strategies to his readers.
Mike is the creator of Profit First, which is used by over one million companies across the globe to drive permanent profit. He is also the creator of Clockwork (small business systems), Fix This Next (small business strategy), Get Different (small business marketing), The Pumpkin Plan (small business growth), and All In (small business teams).
Add to Cart
Add to Cart
Add to Cart
Add to Cart
Add to Cart
Customer Reviews
4.7 out of 5 stars
544
4.7 out of 5 stars
237
4.7 out of 5 stars
185
4.7 out of 5 stars
1,631
4.9 out of 5 stars
112
Price
$14.99$14.99 $23.94$23.94 $18.59$18.59 $19.69$19.69 $20.99$20.99
YOUR GUIDE TO ENTREPRENEURIAL SUCCESS
I want to do the RIGHT things! I want to MARKET better than ever! I want to get my TIME back! I want to GROW fast and strong! I want to LEAD an unstoppable team!
ASIN : 073521414X
Publisher : Portfolio; Reissue edition (February 21, 2017)
Language : English
Hardcover : 224 pages
ISBN-10 : 9780735214149
ISBN-13 : 978-0735214149
Item Weight : 2.31 pounds
Dimensions : 6.19 x 0.8 x 9.29 inches
Customers say
Customers find the book value for money and actionable. They also say it’s easy to understand and makes sense. Readers find the information quality great, smart, and entertaining. Opinions differ on the pacing, with some finding it quick and fast, while others say it’s repetitive and has too much story interwoven.
AI-generated from the text of customer reviews
7 reviews for Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine (Entrepreneurship Simplified)
Add a review
You must be logged in to post a review.
Related Products
![80/20 Sales and Marketing – 2013: The Definitive Guide to Working Less and Making More [August 13, 2013] Paperback](https://i3.wp.com/m.media-amazon.com/images/I/61Weo05zs4L._SL1499_.jpg?w=300&resize=300,300&ssl=1)
![U.S.A.: The Complete Trilogy [The 42nd Parallel, 1919, and The Big Money] (U.S.A. Trilogy)](https://i2.wp.com/m.media-amazon.com/images/I/71JUfZGvPKL._SL1500_.jpg?w=300&resize=300,300&ssl=1)
Original price was: $29.00.$13.55Current price is: $13.55.
![Retrieve Training for Social Media Marketing Suite for Mac [Download]](https://i3.wp.com/m.media-amazon.com/images/I/61ko9PBiNxL._AC_SL1176_.jpg?w=300&resize=300,300&ssl=1)
Lambertsavage –
This will challenge your thinking about business profitability.
When a friend told me about Profit First, it sounded like a solution for those who had trouble using and understanding GAAP (Generally accepted accounting principles). I had just completed a special bookkeeping project for my friend’s business and I had seen the challenges that he faced. The one thing I remember from our conversation was that he had worked over thirty years in his industry and had been successful in selling many units over the years. His question was, “Where’s the money?” He is financially successful but thought he should have much more to show for his successful sales career.I decided to buy the book and see for myself what I couldn’t wrap my head around from my client’s description. I had limited ability to think outside the normal accounting/bookkeeping mode since I’ve been doing bookkeeping for others and myself for many years and support a number of clients who use proprietary software to maintain their books. Bottom line: I’m glad I read the book and followed the instructions for setting up the specific bank accounts Michalowicz suggests; after I took the quick assessment of one of our businesses, I was able to see where our allocation assumptions had left us–with booked profits but very little cash.Mr. Michalowicz writes from the standpoint of having started a number of businesses and facing the stark reality that if one’s expenses aren’t allocated correctly, the business is often just breaking even or less. Putting aside allocated profit first requires the business owner to then take a sharp pencil to his/her expenses and allocate them in percentages that are in line with the profit allocation he/she has set.I’ve only just begun to use this system and can see results from it already. It makes sense since I take the profit off the top of each sale and effectively get it out of site so I’m not tempted to spend it when the squeeze is on. It’s an entirely different way of thinking for me in our businesses; instead of Income-expenses=Profit; Income-Profit=Expenses. Then it’s up to the business owner(s) to work on suggested expense allocations to get them in line with the profit allocation chosen. In the (Almost) Instant Assessment, the author offers suggested expense allocations based on the size of the enterprise. This book has enough accounting and economics argot to satisfy the accounting purist, but will also make sense to guy or gal who finds all that “accounting stuff” boring and even irritating—” I’m out there selling every day; you (bookkeeper) just make it work!”Mike Michalowicz writes in an easy, declarative style, using humor, often self-deprecating, and anecdotes from his work and family life (the piggy bank story is both poignant and instructive). He shares his own stories of learning through mistakes, does not make grandiose claims, and fairly early on in the book asks the reader to send him a personal email stating, “I’ve drawn the line in the sand,” thereby committing the reader’s business to profitability. I did that, by the way, and got a response from Mike. There was something about the challenge that took me back to the movie Network when news anchor Howard Beale tells his listeners to open their windows and shout, ” I’m mad as hell and I’m not going to take it anymore.â The commonality is that both actions were about lines drawn in the sand.This book is an easy and captivating read. I felt as if I knew the writer because of his candor and style, and recommend the book to anyone with a business, especially if you’ve ever seen a disconnect between what your accountant tells you about the profitability of your business and the money in the bank at the end of a “profitable” year.
Sam –
A Simple System that WORKS!!! Definitely worth the read!
I love efficiency! And in general an envelope system is a great way to do that…but with actual physical envelopes, it gets a little cumbersome.This year, I implemented Profit First in my business as I read this book. It was one of the first books I read.I love the siplicity & actionable steps that Mike provides. Some people have complained that there’s nothing ground-breaking here but I tend to disagree.Most people I’ve worked with as a small business systems consultant need a little help organizing most parts of their business. That includes their money. Whether they’re just starting out or have been in business nearly 10 years, some haven’t quite figured out how to manage the money in a way that allows them to have some left over at the end. And at the same time, removes the hassle of physical money management (envelopes and cash). Each account makes your numbers visible at a glance!!!This book gives you a system to do just that. Turning a money gobbler into an organized set of pre-assigned buckets for each of your business dollars.For someone who loves both numbers and systems, the Profit First method has given me both. Got to say that having the ability to actually draw a profit in the first quarter this year and KNOWING what that amount should be has been powerful! The emotional ups and downs of running your own business can be challenging. And seeing that profit account grow gives you something to look forward to as you work through the good and the rough days of owning a business!Mike provides guidelines for how to handle the lingering questions about managing the $$ that come up for a lot of business owners. I’ve shared this book with multiple business owners since reading and implementing it in my own business.If you’re in a spot where you’re unsure about how to organize your business finances or haven’t taken a profit distribution in years, or haven’t ever even had a profit to speak of, this book is a great place to get started!!Definitely worth reading! Really glad I implemented it!I’ve even started using this as a client gift during my process and systems work with clients. And so far, everyone I’ve sent it to has given it rave reviews as well.
Daniela –
Profit First by Mike Michalowicz is an eye-opener, turning the often daunting task of managing business finances into a simple, engaging process that truly helps prioritize profit and boost financial well-being.I recommend!
Laércio Zulian Gallina –
Ãtima leitura, estimula a encarar os pequenos e médios negócios de outra forma.
Adan Lopez Peña –
If you are a business owner (or are planning to be one) and think that revenue is growth, and growth is profit, you should read this.
Reader –
Even though Iâm finance guy, I find this approach good! It really works! One of books Iâm using now daily !
Mateo Eguiguren –
El libro habla acerca de un simple sistema para separar primero el Profit, después pagarte a ti como el empleado más importante dentro de toda la compañÃa. Luego separar para pagar impuestos porque ese dinero no te pertenece a ti, sino al Estado y finalmente pagar los costos operativos.Este mes lo comenzaremos a aplicar en la agencia de marketing especializada en comercio electrónico y dentro de unos meses veremos el impacto