What if, rather than you serving your business, your business served you? What if you could turn a profit from your very next deposit? And what if you had the power to guarantee that profitability? It’s possible, and the solution is simpler than you think. Mike Michalowicz, the author of perennial bestsellers The Pumpkin Plan, The Toilet Paper Entrepreneur and Surge, has developed a counter-intuitive cash-management system that has helped tens of thousands of small businesses break out of the doom spiral and achieve instant profitability. Now, you can do it too. Treating profit like an afterthought, secondary to growth, usually has the effect of running your business into the ground. Profit First takes a behavioral approach to accounting and flips the formula: Sales – Profit = Expenses. Just as one of the most effective weight-loss strategies is to limit portions by using smaller plates, Michalowicz shows how to take profit first and spend only what remains on expenses. With this one change, you will instantly transform your business from a cash-eating monster to a profitable cash cow.
IN THIS SUMMARY, YOU WILL LEARN:
• Why following four principles can simplify accounting and make it far easier to manage a profitable business by just looking at bank account balances.
• How taking your profit first both enforces frugality and inspires industry-changing innovation.
• That a small, consistently profitable business can be worth much more than a large business that struggles to sustain itself.