Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
Mike Michalowicz
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 behavioural 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 humour, Michalowicz has the game-changing roadmap for any entrepreneur to make money they always dreamed of.
Review
Mike Michalowicz flips traditional accounting on its head – a revelation for marketers who need to prove ROI. His “small plates” approach (allocating profit first, then expenses) transformed how we position financial services to small business owners.
We implemented his system with a struggling e-commerce client, setting up dedicated accounts for Profit, Owner’s Pay, and Taxes before operational costs. Within 6 months, they went from break-even to 14% net margins. Michalowicz’s “instant assessment” formula also reshaped our lead magnets; our “5-Minute Profit Health Check” now drives 3X more qualified leads than generic “tax savings” guides.
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