Review Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
by MIKE MICHALOWICZ
The author of The Pumpkin Plan and The Toilet Paper Entrepreneur rendered yet again, another guidebook that offers logical financial solutions that will help small businesses escape financial failure and achieve exponential and quick returns.
Though highly flawed, traditional accounting uses the logical formula, Sales- Expenses = Profit. However, businesses are operated by humans, and since humans are susceptible to mistakes, financial concerns, and issues frequently arise. Drawing from this error, Serial Entrepreneur Mike Michalowicz created a unique behavioral approach to revise the formula: Sales – Profit = Expenses.
Using the principle of limiting volumes through minimum consumption, Michalowicz emphasized that by focusing on profit first and strategically budgeting on what is allocated for expenses, entrepreneurs may flip their failing business into a machine capable of raking in exponential profits. Through the help of Profit First system, readers will have knowledge on:
- Importance of 4 simple principles and strategies in accounting and financial management
- The value of small business and how it can worth more than large businesses if the right approach is implemented
- Immediate and sustained profitability is crucial for businesses in order to achieve longer momentum
Through this guidebook infused with case studies, systematic instructions, and entertaining voice, Michalowicz collected and compiled the formulas for an entrepreneur to achieve financial success.
About the Author
Mike Michalowicz managed to sell two multi-million dollar companies by the age of 35. Believing that he was armed with the right formula, he endeavored to become an angel investor to which things went wrong and, in a snap, lost his wealth and fortune. After Michalowicz’s major financial setback, he started again and produced the “Profit First” formula, an efficient and guaranteed method for a business to secure profits.
Presently, he is managing his third million-dollar business, the Profit First Professionals. In addition to his career path, he is also a section columnist of business for The Wall Street journal. He regularly appears as a guest lecturer for entrepreneurial forums at Babson, Boston College, Harvard, and Princeton.
Table of Contents
- Chapter 1- Your Business is an Out of Control Cash –Eating Monster
- Chapter 2- The Core Principles of Profit First
- Chapter 3- Setting UP Profit First For Your Business
- Chapter 4- Assessing the Health of Your Business
- Chapter 5- Allocation Percentages
- Chapter 6- Putting Profit First Into Motion
- Chapter 7- Destroy Your Debt
- Chapter 8- Find Money Within Our Business
- Chapter 9- Profit First- Advanced Techniques
- Chapter 10- The Profit First Life
- Chapter 11- How to Keep It From Falling Apart
- Appendix 1- The Profit First Quick Setup Guide
- Appendix 2- The instant Assessment Form
- Appendix 3- Glossary of Key Terms