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.
|Publisher:||Penguin Publishing Group|
|Product dimensions:||6.30(w) x 9.10(h) x 1.00(d)|
About the Author
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Excerpted from "Profit First"
Copyright © 2017 Mike Michalowicz.
Excerpted by permission of Penguin Publishing Group.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
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
Most Helpful Customer Reviews
The best book ever! If I could, I would write chapter is about how amazing this book is for so very many different reasons. I have no business background, no accounting background, no finance background: I am a forensic psychologist. But I (was) not a business owner and never saw myself as becoming one. In fact, when I decided to start my business I was more freaked out than testifying on the stand! But I took the leap in July 2018, and I was fortunate enough to find Profit First and jump on it; the audiobook is hysterical, and I bought the hard copy as well just because it’s so good (and I like to take notes and look back at things). Within the first three minutes of the book I was completely hooked. Now, not only is it full of absolutely incredible information, which a lay-woman such as myself can actually understand, but coming from a psychological standpoint, so very much of it is absolutely accurately true and based in psychological science of simple human behaviors. It makes something seemingly incredibly complicated seem so damn simple! And do-able! Even for me! I found myself nodding, saying, “Yep. Yep, of course!” Simple changes to simple human behavior are used to make your business become PROFIT FIRST. I can’t drive home my point enough in that this is an incredibly educational book. I learned so very much about how to run my business, getting motivated and realistic about finally having financial freedom, being comfortable with the hours I work, the salary I pay myself, what all these numbers and names and acronyms and shit even mean. I am still no expert but I sure do know a hell of a lot more than I did last week. And I feel really great about going forward! So very much of that I attribute to Mike’s knowledge, work, and presentation(s). As I was fortunate enough to listen to the audiobook version, let me just tell you that Mike is likely a standup comedian on his off-nights. I found myself so entertained on my long commutes that I was laughing repeatedly despite it being 4 o’clock in the morning and living in Minnesota… You know what I mean… he is hilarious and yet poignant and concise. He’s a great storyteller and he drives everything home with a bang. And ALL of it applies to being PROFITABLE and HAPPY. I am truly going to miss having Mike in my CD player. But now I have his podcast (I’m so lucky!). I wrote him my first email (he says DO IT and I did), and he responded to me, human to human. How often do you get that these days? I really appreciated his kind words, words of inspiration and motivation; that he personalized my field, my career, and my goals and life ambitions. He genuinely cares about people - about us - and that’s because he is one of us. You have to buy this book, even if it’s not technically for a business! Because your family, your lifestyle, just your job and finances that you have right now, they can all be run as a PROFIT FIRST business and you will have a remarkable outcome such as retiring early and prosperous. Trust me, it’s the first thing I did (along with the business set-up) and I already feel so much more confident moving forward. 10 birds, one stone. He is the best. My psych-pals who are looking to start their own businesses – the first thing I told them was BUY THIS BOOK! And now they will be just as happy and profitable as me! Thank you, Mike! You have changed my life.
This book is a MUST READ for every entrepreneur. I’m a financial planner and have a master’s degree in banking, and don’t remember any of my class materials providing more valuable information. And, the audiobook is worth listening to, even if you’ve already read the book! Extra stories, context and Mike’s wonderful sense of humor!
This is a fabulous book and helps create am amazing paradigm shift for your business and money. A must read for entrepreneurs!