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.
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|Publisher:||Penguin Publishing Group|
|Product dimensions:||6.30(w) x 9.10(h) x 1.00(d)|
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Excerpted from "Profit First"
Copyright © 2017 Mike Michalowicz.
Excerpted by permission of Penguin Publishing Group.
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Table of Contents
Chapter 1 Your Business is an Out-of-Control Cash-Eating Monster 11
Chapter 2 The Core Principles of Profit First 34
Chapter 3 Setting Up Profit First for your Business 49
Chapter 4 Assessing The Health of your Business 59
Chapter 5 Allocation Percentages 75
Chapter 6 Putting Profit first Into Motion 89
Chapter 7 Destroy your Debt 114
Chapter 8 Find Money within your Business 133
Chapter 9 Profit First-Advanced Techniques 148
Chapter 10 The Profit First Life 163
Chapter 11 How to Keep it from Falling Apart 177
Appendix 1 The Profit First Quick Setup Guide 195
Appendix 2 The Instant Assessment Form 197
Appendix 3 Glossary of Key Terms 199