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Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
Author of cult classics The Pumpkin Plan and The Toilet Paper Entrepreneur offers a simple, counterintuitive cash management solution that will help small businesses break out of the doom spiral and achieve instant profitability.
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.
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.
224 pages, Hardcover
First published June 24, 2014
6549 people are currently reading
28609 people want to read
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Displaying 1 - 30 of 1,162 reviews
May 3, 2017
The title to this book will turn off many people. Gnostic Christians won't like it because "profit" is a bad word. Entrepreneurs won't because it sounds too good to be true. The general populace because they aren't business owners. However, the formula behind this book is critically applicable in any aspect of life and not only business. Here's the formula:
Sales-Profit=Expenses
Whoa! Seems rather backwards doesn't it?
In business, here is how it works:
Figure out your Real Revenue: The income generated by your company after subtracting the cost of
materials and subcontractors.
Dump your income into a bank account twice a month, then immediately disperse into other bank accounts in the following order:
Profit - 1% (monthly/quarterly working up to 5%) ("Profit First")
Owner's Pay - 1% (working up to 50%)
Tax - 1% (working up to 15%)
Operating Expenses - the remainder % (working down to 30%)
Every month or quarter, move the percentage up 1% (down for OpEx), knowing that you aren't allowed to go back.
What does this do? It forces you to bootstrap. To think agile. To be lean and mean. You don't pour the profit back into the business. You think how you can leverage the decreasing OpEx percentage in your favor. You no longer think "yeah, I'll just spend the money on that necessary gadget." Now, you think "how can I not buy the gadget, and still figure out a way to do it better?"
How does this apply to life? Do you prioritize your priorities? Talking with God? Meditating on God's Word? Exercise? Training your children? Romancing your wife?
Or do you give them what is left over?
How do you set up ways that prioritize the priorities? In business, you set up a separate bank account for your Profit and Taxes at the MOST inconvenient bank that has NO online access, no bank cards and requires you to physically visit the bank to get money out.
For morning time with God, I place my alarm on the other side of the bedroom, so I have to physically get out of bed. You don't get back in bed. And in business you don't touch the Profit or Taxes accounts and you definitely don't pour the profits back into the business. You want to be agile...up and moving.
For exercise, I might hide all my shoes but my running shoes. Or leave my running clothes on top of my alarm. Or tell myself that I must do 1 pushup (which always results in doing them all).
For a personal retreat, I might book a non-refundable hotel.
You get the drift. Prioritize the priorities. Sales-Profit=Expenses.
Profit First.
Sales-Profit=Expenses
Whoa! Seems rather backwards doesn't it?
In business, here is how it works:
Figure out your Real Revenue: The income generated by your company after subtracting the cost of
materials and subcontractors.
Dump your income into a bank account twice a month, then immediately disperse into other bank accounts in the following order:
Profit - 1% (monthly/quarterly working up to 5%) ("Profit First")
Owner's Pay - 1% (working up to 50%)
Tax - 1% (working up to 15%)
Operating Expenses - the remainder % (working down to 30%)
Every month or quarter, move the percentage up 1% (down for OpEx), knowing that you aren't allowed to go back.
What does this do? It forces you to bootstrap. To think agile. To be lean and mean. You don't pour the profit back into the business. You think how you can leverage the decreasing OpEx percentage in your favor. You no longer think "yeah, I'll just spend the money on that necessary gadget." Now, you think "how can I not buy the gadget, and still figure out a way to do it better?"
How does this apply to life? Do you prioritize your priorities? Talking with God? Meditating on God's Word? Exercise? Training your children? Romancing your wife?
Or do you give them what is left over?
How do you set up ways that prioritize the priorities? In business, you set up a separate bank account for your Profit and Taxes at the MOST inconvenient bank that has NO online access, no bank cards and requires you to physically visit the bank to get money out.
For morning time with God, I place my alarm on the other side of the bedroom, so I have to physically get out of bed. You don't get back in bed. And in business you don't touch the Profit or Taxes accounts and you definitely don't pour the profits back into the business. You want to be agile...up and moving.
For exercise, I might hide all my shoes but my running shoes. Or leave my running clothes on top of my alarm. Or tell myself that I must do 1 pushup (which always results in doing them all).
For a personal retreat, I might book a non-refundable hotel.
You get the drift. Prioritize the priorities. Sales-Profit=Expenses.
Profit First.
August 7, 2016
Good concept. General accounting principles dictate that: revenue - expenses = profit. This book suggests turning this formula around so that: revenue - profit = expenses.
It basically plays to the common human trait of using whatever resources we have to make things happen. If we have one month to complete a project, it'll take us one month. If we have a week, it'll take us one week. Urgency and scarcity work as incentives. This same principle is used here for treating expenses when it comes to running a business.
The writing style, however, is horrible. I can't stand the idiotic way the author is trying to be funny and/or relatable. This seems to be a general trend in certain contemporary business books. Please stop.
It basically plays to the common human trait of using whatever resources we have to make things happen. If we have one month to complete a project, it'll take us one month. If we have a week, it'll take us one week. Urgency and scarcity work as incentives. This same principle is used here for treating expenses when it comes to running a business.
The writing style, however, is horrible. I can't stand the idiotic way the author is trying to be funny and/or relatable. This seems to be a general trend in certain contemporary business books. Please stop.
January 11, 2019
I was pretty skeptical when in the first chapter of Profit First the author guaranteed every business that uses his system will be immediately profitable, and by the end of the book I was proven correct. “Transforming Your Business” to become more “profitable” happens by changing the definition of profit and implementing an over-complicated accounting system using several different bank accounts. The whole gist is that entrepreneurs should be paying themselves a salary and dividends and accruing for taxes regularly. Rather than rev - exp = profit, rev - profit = expenses. Decide what you want your profit to be and adjust expenses accordingly. This book is an irresponsible take down of GAAP. You can take the general idea of paying yourself a salary, dividends, and having a “lean” business without ditching your accounting systems (which, GAAP is being reviewed and modified annually, Mr Author who claims it is an old system. You just don’t really know how to use it. And you kind of admit that early in the book lol.)
December 23, 2018
A 180 page book of common sense that could be wrapped up in five pages.
The only person profiting from reading this book is the author who managed to sell a self help book to poor souls who either don't understand money, or got shilled into buying it. It's bizarre to assume there are people who don't understand these basic concepts that actually own businesses.
Half the book is an advertisement for his own consulting business. The only use for this book is reading it in public to make it look like you own a business or something.
The only person profiting from reading this book is the author who managed to sell a self help book to poor souls who either don't understand money, or got shilled into buying it. It's bizarre to assume there are people who don't understand these basic concepts that actually own businesses.
Half the book is an advertisement for his own consulting business. The only use for this book is reading it in public to make it look like you own a business or something.
May 17, 2017
One of the simplest, clearest, and most practical approaches to handling the finances of a business that I've ever read. "Profit First", just as the name implies, is a straightforward, understandable discipline that -- if applied - can completely transform a business, and put it on the path toward managing cash flow to greater -- dare I say guaranteed? --profitability.
No rocket science here, just basic common sense, and a system that's wonderfully easy to apply and manage. Not only does it give me a whole new paradigm for advising clients in my CPA practice, but I'll be adopting this model for my own business.
No rocket science here, just basic common sense, and a system that's wonderfully easy to apply and manage. Not only does it give me a whole new paradigm for advising clients in my CPA practice, but I'll be adopting this model for my own business.
January 17, 2018
Not 100% applicable to personal finances as it says. Could have just read the one 'personal' chapter. Felt as though it's a lot of repetition of the same anecdotes, corny jokes, and "breaking the third wall" writing. Was happy when it was completed.
January 31, 2020
RE-READ: I intended to revisit this book a year after starting to implement the things it teaches, to reassess what I had done and pick up on any tips and hints I missed the first time. I found myself looking back on the business decisions I made over the last twelve months partly as a result of reading this book. Not only did my income grow significantly, but I was able to start enjoying the fruits of my labours and spending the hard-earned with peace of mind.
There's a big difference between working for a business and letting your business work for you. No matter how much of a dunce you are at business and no matter how little you're making, this book is well worth the read.
--
Before I picked up this book, I had so many questions about how to handle money and run a business.
Now I have answers to those questions, and for the first time in my life I feel like I have the first inklings of how to handle money.
Highly recommended to anyone who needs to figure out what to do with even very small amounts of money.
There's a big difference between working for a business and letting your business work for you. No matter how much of a dunce you are at business and no matter how little you're making, this book is well worth the read.
--
Before I picked up this book, I had so many questions about how to handle money and run a business.
Now I have answers to those questions, and for the first time in my life I feel like I have the first inklings of how to handle money.
Highly recommended to anyone who needs to figure out what to do with even very small amounts of money.
April 12, 2023
Summary:
This book is great. Well structured, informative and the writing is entertaining. Some great examples and supporting resources are available through the author's website and you are directed to them throughout the book. The system described in the book turns generally accepted accounting principles on their head by changing the way you operate your business from revenue - expenses = profit to revenue - profit = expenses. This minor change has a massive impact on your psychology and flows through into business and financial efficiency. The author offers an accounting system that is simple to implement, but able to yield massive financial gains over time. I like these seemingly obvious and basic approaches that for some reason aren't the norm. They are often easy to implement, easily automated and have large rewards. While my business ventures only create infrequent revenue at the moment, as things pick up I'll be starting with this system in place which will hopefully give me the edge and help build good habits.
I would recommend this book to anyone operating a business or thinking of operating one.
The main message I took from this book is that our psychology leads us to make poor decisions and we can prevent this from happening by creating effective systems that neutralise our tendencies. Profit first is one such system.
Some notable points:
- Profit is the important foundation of a business. We must master profit in order to have a business that lives up to its purpose.
- A lack of profitability leads to a lot of business failure. A business can earn immense revenue, but still be unprofitable.
- Rather than trying to leverage our habits, it is more productive to change the structure around us and our habits to leverage them instead.
- Four tips to dieting that also work for finance: Use small plates (redistribute money to other accounts), serve sequentially (allocate based on percentages to accounts in order), remove temptation (move your profit and other tempting accounts out of arm's reach and make it hard to access them) and enforce a rhythm (do your allocations twice a month, on the 10th and the 25th of the month works well).
- Parkinson's Law applies to your money in the sense that when you have lots available, you'll use it, when you don't, you won't. By restricting access and visibility of your money, you'll blow less cash and run a leaner operation.
- We place additional significance on whatever we encounter first. This is called the primacy effect.
- When you take your profit first, your business will tell you whether you are streamlined enough and can pay your bills or not. If you can't, you need to address these points and make fixes.
- Sales - profit = expenses.
- The model: Set up five accounts. Income, owner's pay, operating expenses, profit and taxes. Determine target allocation percentages based on an instant assessment, but start slow (1% at implementation). From here all receipts from sales go into the income account and on the 10th and 25th of each month you'll spread the money into the other accounts as per your allocation percentages. Then disburse salaries from the owner's pay account and pay bills from the operating expenses account. At the start/end of each quarter take 50% of the money from the profit account as profit distribution. To optimise this system, set up the profit and taxes accounts with a separate bank.
- No matter what the number is, if you work toward it and believe it is a possibility, you will achieve it and even blow past it.
- marketwatch.com can provide important information about similar businesses.
- Don't cut your salary to make the numbers work. The goal of every business is health and that is achieved through efficiency.
- Your company should reserve your personal income tax liability and then pay it. Your business should pay your taxes.
- You can determine what owner's salary your business can afford by looking at your lowest three months and drawing a reasonable percentage from that.
- The ultimate in innovation is to extract more benefit from less expensive resources.
- It's smarter to dig a well than to try and make it rain.
- Every business should have a three month cash reserve.
- There is a simple rule to determine staffing capacity: for each full time employee, your company should generate real revenue of $150,000.
- Don't expand your lifestyle in response to more cash on hand. You need to accumulate cash. Lock in your lifestyle so you can achieve financial freedom in the long run.
- 5 steps to help lock in your lifestyle:
1. Always look for a free option
2. Never buy new if you get the same benefit as used.
3. Never pay full price.
4. Negotiate and seek alternatives first.
5. Delay major purchases until you've written down 10 alternatives.
This book is great. Well structured, informative and the writing is entertaining. Some great examples and supporting resources are available through the author's website and you are directed to them throughout the book. The system described in the book turns generally accepted accounting principles on their head by changing the way you operate your business from revenue - expenses = profit to revenue - profit = expenses. This minor change has a massive impact on your psychology and flows through into business and financial efficiency. The author offers an accounting system that is simple to implement, but able to yield massive financial gains over time. I like these seemingly obvious and basic approaches that for some reason aren't the norm. They are often easy to implement, easily automated and have large rewards. While my business ventures only create infrequent revenue at the moment, as things pick up I'll be starting with this system in place which will hopefully give me the edge and help build good habits.
I would recommend this book to anyone operating a business or thinking of operating one.
The main message I took from this book is that our psychology leads us to make poor decisions and we can prevent this from happening by creating effective systems that neutralise our tendencies. Profit first is one such system.
Some notable points:
- Profit is the important foundation of a business. We must master profit in order to have a business that lives up to its purpose.
- A lack of profitability leads to a lot of business failure. A business can earn immense revenue, but still be unprofitable.
- Rather than trying to leverage our habits, it is more productive to change the structure around us and our habits to leverage them instead.
- Four tips to dieting that also work for finance: Use small plates (redistribute money to other accounts), serve sequentially (allocate based on percentages to accounts in order), remove temptation (move your profit and other tempting accounts out of arm's reach and make it hard to access them) and enforce a rhythm (do your allocations twice a month, on the 10th and the 25th of the month works well).
- Parkinson's Law applies to your money in the sense that when you have lots available, you'll use it, when you don't, you won't. By restricting access and visibility of your money, you'll blow less cash and run a leaner operation.
- We place additional significance on whatever we encounter first. This is called the primacy effect.
- When you take your profit first, your business will tell you whether you are streamlined enough and can pay your bills or not. If you can't, you need to address these points and make fixes.
- Sales - profit = expenses.
- The model: Set up five accounts. Income, owner's pay, operating expenses, profit and taxes. Determine target allocation percentages based on an instant assessment, but start slow (1% at implementation). From here all receipts from sales go into the income account and on the 10th and 25th of each month you'll spread the money into the other accounts as per your allocation percentages. Then disburse salaries from the owner's pay account and pay bills from the operating expenses account. At the start/end of each quarter take 50% of the money from the profit account as profit distribution. To optimise this system, set up the profit and taxes accounts with a separate bank.
- No matter what the number is, if you work toward it and believe it is a possibility, you will achieve it and even blow past it.
- marketwatch.com can provide important information about similar businesses.
- Don't cut your salary to make the numbers work. The goal of every business is health and that is achieved through efficiency.
- Your company should reserve your personal income tax liability and then pay it. Your business should pay your taxes.
- You can determine what owner's salary your business can afford by looking at your lowest three months and drawing a reasonable percentage from that.
- The ultimate in innovation is to extract more benefit from less expensive resources.
- It's smarter to dig a well than to try and make it rain.
- Every business should have a three month cash reserve.
- There is a simple rule to determine staffing capacity: for each full time employee, your company should generate real revenue of $150,000.
- Don't expand your lifestyle in response to more cash on hand. You need to accumulate cash. Lock in your lifestyle so you can achieve financial freedom in the long run.
- 5 steps to help lock in your lifestyle:
1. Always look for a free option
2. Never buy new if you get the same benefit as used.
3. Never pay full price.
4. Negotiate and seek alternatives first.
5. Delay major purchases until you've written down 10 alternatives.
June 7, 2017
Money is hard. Running a profitable business is hard. In theory all the accounting principles work, but only if you're an accountant, and then not even always.
Profit First introduces you to a new way to manage your business finances, take your profit first. Forget about fancy stuff, this keeps it simple and if you follow it's plan you will build a business that is wildly profitable.
Profit First introduces you to a new way to manage your business finances, take your profit first. Forget about fancy stuff, this keeps it simple and if you follow it's plan you will build a business that is wildly profitable.
September 23, 2024
Do not be deceived by the title of the book - this is more about accounting principles or, perhaps more accurately, a monetary mindset than it is anything else. As a leader focused on people the title appeared out of line with my philosophies. In actuality, the author doesn't much discuss employees and leadership.
After reading this I thought myself lucky to not be captive to the mindset the author says "countless" entrepreneurs have. I haven't fallen into any of the pitfalls described (we all check our bank accounts, even if we regularly review our P&Ls). This actually makes me think there's something not quite right about this book. Yes, I am educated, enjoy researching businesses, and am experienced in leadership, but I don't believe I am unique or possess a superior intelligence than other business owners/leaders. The few good points I thought the author made could have been summarized in a nice article in a journal or online source, but I suppose selling a book makes more money. I'm glad I was given this book as I would have been disappointed if I spent money for it.
I wouldn't really recommend this book to anyone to be used as guiding principles; rather, this book might be used to perhaps help people who avoid the fiscal side of their business reframe their expenses. After that, there is much more work to be done in order to better grasp your business and its health and plenty of other sources of information to better do that.
After reading this I thought myself lucky to not be captive to the mindset the author says "countless" entrepreneurs have. I haven't fallen into any of the pitfalls described (we all check our bank accounts, even if we regularly review our P&Ls). This actually makes me think there's something not quite right about this book. Yes, I am educated, enjoy researching businesses, and am experienced in leadership, but I don't believe I am unique or possess a superior intelligence than other business owners/leaders. The few good points I thought the author made could have been summarized in a nice article in a journal or online source, but I suppose selling a book makes more money. I'm glad I was given this book as I would have been disappointed if I spent money for it.
I wouldn't really recommend this book to anyone to be used as guiding principles; rather, this book might be used to perhaps help people who avoid the fiscal side of their business reframe their expenses. After that, there is much more work to be done in order to better grasp your business and its health and plenty of other sources of information to better do that.
February 13, 2022
I loved this book. Even though it's focusing on financial management of self-employed people and businesses, it helped me apply the same principles to time management. Reserving hours for various important aspects of your life (health, relationships, prayer, work, reading, sleep) and treating them as separate 'bank accounts' from which you can't 'steal' to fill a budget deficit is a game changer. Applying the principle of 'profit first' actually means: putting yourself, your health, your well-being, your relationships first. I've often put all those priorities last - to my own detriment.
November 26, 2018
Easily the most poorly written, repetitive, vacuous book I've ever read. The entire book could be summarized in two pages.
September 30, 2022
Kitabı okumaya başladığımda farkında olmadan 2 yıldan beri Önce Kar sistemini kullandığımı fark ettim :)
Kullandığım sistemin biraz daha gelişmişini görünce şaşırmadım diyebilirim. Çünkü aşırı mantıklı ve sonuç odaklı!
Kısaca;
2 yıl önce KDV hesabını başka bir bankaya taşıdım. Böylece tahsilatlarım ana hesabıma gelir gelmez hemen KDV’sini ilgili hesaba atarak ayırmaya başladım. KDV ödemelerinde artık zorlanmıyorum.
Çünkü para artık ana hesabımdan çıkmıyor. Çünkü bu para devletin. Ben sadece onu tahsil etmesi için görevlendirilmiş bir şirket kurucusuyum.
Önce Kar sistemini böyle düşünebilirsiniz. Konu aslında çok basit. 5 farklı banka hesabı açın ve ödemeler gelir gelmez o hesaplara paylaştırın.
Ödeme zamanlarında hiç sorun yaşamadan nakit akış dengesini oturtturun. Önce Kar’ı ve Mike’ın tarzını çok sevdim. Eğer girişimciyseniz ve para ile ilgili bir sorunuz varsa (ki genelde olur, hele ki Türkiye’de yaşıyorsanız) bu kitabı mutlaka okuyun.
Dili sade ve akıcı. Bazı kısımlar size sıkıcı gelebilir özellikle formüllerin olduğu kısım.. Oradan uzaklaşıp mantığını anlamaya çalışın.
Mike bazen süreci karmaşıklaştırmış. Ben ana çerçeveyi ve genel mantığını aldım.
Mantığını alın, basit düşünün ve para biriktirmenin keyfini yaşayın!
Kullandığım sistemin biraz daha gelişmişini görünce şaşırmadım diyebilirim. Çünkü aşırı mantıklı ve sonuç odaklı!
Kısaca;
2 yıl önce KDV hesabını başka bir bankaya taşıdım. Böylece tahsilatlarım ana hesabıma gelir gelmez hemen KDV’sini ilgili hesaba atarak ayırmaya başladım. KDV ödemelerinde artık zorlanmıyorum.
Çünkü para artık ana hesabımdan çıkmıyor. Çünkü bu para devletin. Ben sadece onu tahsil etmesi için görevlendirilmiş bir şirket kurucusuyum.
Önce Kar sistemini böyle düşünebilirsiniz. Konu aslında çok basit. 5 farklı banka hesabı açın ve ödemeler gelir gelmez o hesaplara paylaştırın.
Ödeme zamanlarında hiç sorun yaşamadan nakit akış dengesini oturtturun. Önce Kar’ı ve Mike’ın tarzını çok sevdim. Eğer girişimciyseniz ve para ile ilgili bir sorunuz varsa (ki genelde olur, hele ki Türkiye’de yaşıyorsanız) bu kitabı mutlaka okuyun.
Dili sade ve akıcı. Bazı kısımlar size sıkıcı gelebilir özellikle formüllerin olduğu kısım.. Oradan uzaklaşıp mantığını anlamaya çalışın.
Mike bazen süreci karmaşıklaştırmış. Ben ana çerçeveyi ve genel mantığını aldım.
Mantığını alın, basit düşünün ve para biriktirmenin keyfini yaşayın!
December 17, 2023
I’m a mental health therapist and the statement I hear the most in sessions after an individual discovers what needs to be done to improve their situation is, “Wow! But that’s so simple.” It happens so regularly now that I can accurately predict the next phase of treatment: resistance! “I can’t believe I spent all this time (and or money) to learn that all I need to do is start closing my bedroom door or [insert an equally simple task] in order for things to start improving in my relationship.” Sometimes they make the change but many times they don’t. They may even show up and tell me, “hey doc, I’ve been telling my friends they need to start closing their bedroom door because it makes life so much easier.” Despite their situation being the same, sometimes the knowledge is enough to make them feel better without doing the actual tasks. So why am I saying all this…well, this book recommends I do something so simple. So I’m entering into the second phase: resistance.
Do I believe this will work? Absolutely! Am I going to do it? At some point. **Beginning to yell and throw a tantrum** BUT I DONT LIKE BEING TOLD WHAT TO DO AND I WISHED I HAD OF COME UP WITH THIS MYSELF!!!! 😫😫😫😫😫😫😫😫😫😫
Now that I’m done with that, let me talk to my wife. She’ll calm me down, tell me to stop being a baby (or knowing her, she might encourage me to continue being a baby so I can get it all out of my system), settle me down, ask me to share what I’ve learned, and we’ll start doing it together.
With that said, 4-stars. I’m not giving it 5 because my feelings are hurt.
Do I believe this will work? Absolutely! Am I going to do it? At some point. **Beginning to yell and throw a tantrum** BUT I DONT LIKE BEING TOLD WHAT TO DO AND I WISHED I HAD OF COME UP WITH THIS MYSELF!!!! 😫😫😫😫😫😫😫😫😫😫
Now that I’m done with that, let me talk to my wife. She’ll calm me down, tell me to stop being a baby (or knowing her, she might encourage me to continue being a baby so I can get it all out of my system), settle me down, ask me to share what I’ve learned, and we’ll start doing it together.
With that said, 4-stars. I’m not giving it 5 because my feelings are hurt.
April 5, 2021
Scroll down to read English translation.
کتاب «اول سود» یه ایده کلی داره
اینکه باید قبل از هر هزینه ای، سود و مالیات رو کنار بذاریم. وقتی بودجه مون برای هزینه ها کمتر میشه، باعث میشه اصولی تر هزینه کنیم. قسمت های کم بازده کسب و کار رو حذف کنیم و به جاش به دنبال راه های افزایش بازدهی باشیم. منابع (مثل کارمندان) کم بازده رو حذف کنیم و غیره.
از طرفی هم استفاده از سود برای خودمون باعث میشه زودتر به سبک زندگی ایده آلمون برسیم و انگیزه بیشتری داشته باشیم برای ارتقا کسب و کار.
برای این موارد اومده تا جای ممکن جزئیات ارائه داده تا نقطه مبهمی برای مخاطب باقی نمونه
___
The book "Profit First" has a general idea
That we must set aside profits and taxes before any costs. When our budget is reduced for expenses, it makes us spend more fundamentally. Eliminate the low-yield parts of the business and look for ways to increase returns instead. Eliminate inefficient resources (such as employees) and so on.
On the other hand, using the profit for ourselves makes us reach our ideal lifestyle sooner and have more motivation to promote the business.
For these cases, the author has provided as much detail as possible to the point of ambiguity for the rest of the sample audience
کتاب «اول سود» یه ایده کلی داره
اینکه باید قبل از هر هزینه ای، سود و مالیات رو کنار بذاریم. وقتی بودجه مون برای هزینه ها کمتر میشه، باعث میشه اصولی تر هزینه کنیم. قسمت های کم بازده کسب و کار رو حذف کنیم و به جاش به دنبال راه های افزایش بازدهی باشیم. منابع (مثل کارمندان) کم بازده رو حذف کنیم و غیره.
از طرفی هم استفاده از سود برای خودمون باعث میشه زودتر به سبک زندگی ایده آلمون برسیم و انگیزه بیشتری داشته باشیم برای ارتقا کسب و کار.
برای این موارد اومده تا جای ممکن جزئیات ارائه داده تا نقطه مبهمی برای مخاطب باقی نمونه
___
The book "Profit First" has a general idea
That we must set aside profits and taxes before any costs. When our budget is reduced for expenses, it makes us spend more fundamentally. Eliminate the low-yield parts of the business and look for ways to increase returns instead. Eliminate inefficient resources (such as employees) and so on.
On the other hand, using the profit for ourselves makes us reach our ideal lifestyle sooner and have more motivation to promote the business.
For these cases, the author has provided as much detail as possible to the point of ambiguity for the rest of the sample audience
March 2, 2023
If you can get past the alarming amount of fatphobia in a book that has no reason to mention body size at all, a lot of the advice makes sense. I can't speak to the effectiveness of his system, having just finished reading it, but for a self-help style book written by a white dude...I was surprised by how few times I rolled my eyes.
But seriously, Mike - enough with the diet culture and anti fat metaphors. Find something more original and less stigmatizing to compare finances to.
But seriously, Mike - enough with the diet culture and anti fat metaphors. Find something more original and less stigmatizing to compare finances to.
Read
February 4, 2023When I got an allowance as a kid I was supposed to divide my money into three envelopes. I got $20 and dividing that by three was hard. Anyways. This book is like that envelope concept but with preallocated percentages depending on your business size. This system makes intuitive sense and I'm excited to do my bookkeeping now
July 12, 2020
Too many business owners are really busy, but struggling to be profitable--and they feel stuck. This book turns the standard approach to planning your finances upside down. This system provides clarity--targets that you need to hit to be profitable--and a multiple bank account method that keeps you from "borrowing" from one category to cover bad performance in another. It's designed to work with human psychology to keep you disciplined and on track--and making profit right away.
If you're a business owner struggling with profit, this is a good read.
If you're a business owner struggling with profit, this is a good read.
January 8, 2022
I almost never leave reviews but this book wasn’t great. The author admits that the reason he came up with this accounting method was because he doesn’t know how to read standardized financial statements. I didn’t either, but I learned.
One good take away (why I gave it two stars instead of one) is the premise that we should focus more on the profits than the revenue. Reverse engineer. I like the premise, but you don’t have to read this book or implement the tactics to glean this good idea.
One good take away (why I gave it two stars instead of one) is the premise that we should focus more on the profits than the revenue. Reverse engineer. I like the premise, but you don’t have to read this book or implement the tactics to glean this good idea.
January 15, 2022
I read this for my #Wordmakers January craft read. I get the concept. And I really like it… Most of the execution is above my head and pay grade. I’m not opening 913 different accounts. I do now have a profit account where I move my profit and leave operating expenses where they need to be to… Operate. That’s as complicated as I really want to get.
I listen to this in audio and it was far more enjoyable than it would have been if I page read it.
I listen to this in audio and it was far more enjoyable than it would have been if I page read it.
This entire review has been hidden because of spoilers.
May 30, 2015
A lot of great advice in this book. I also appreciate that the author makes a real effort to be conversational while also being strict about serious topics. Some of his jokes were a little lame but I suspect that they made him chuckle while he was writing them so I don't begrudge. Nevertheless, I highly suggest this for any business owner or home finance manager!
August 25, 2016
His advice sounds common sense, but it's just not practical at all.
April 13, 2022
Wszystkim osobom, które chcą zadbać o swoje finanse firmowe, z pomocą przychodzi książka "Po pierwsze: ZYSK" Mike'a Michalowicza.
Bo chociaż po przeczytaniu podtytułu "Zmień swoją organizację w efektywną maszynę do zarabiania pieniędzy" miałam raczej sceptyczne nastawienie do tej książki, to jednak wyciągnęłam z niej sporo ciekawych informacji i pomysłów.
I to pomimo całej tej "hamerykańskiej" otoczki, czyli nawijki o sukcesie, amerykańskim śnie i innych bzdurkach, które normalnie mocno mnie odstraszają.
Więcej na blogu: https://klaudynamaciag.pl/2022/04/fin...
Bo chociaż po przeczytaniu podtytułu "Zmień swoją organizację w efektywną maszynę do zarabiania pieniędzy" miałam raczej sceptyczne nastawienie do tej książki, to jednak wyciągnęłam z niej sporo ciekawych informacji i pomysłów.
I to pomimo całej tej "hamerykańskiej" otoczki, czyli nawijki o sukcesie, amerykańskim śnie i innych bzdurkach, które normalnie mocno mnie odstraszają.
Więcej na blogu: https://klaudynamaciag.pl/2022/04/fin...
September 2, 2022
Helpful book on the financial side of business. Recommended to all other entrepreneurs out there who get caught in the "spend money to make money" trap of never actually making a profit.
Rating: 4-4.5 Stars (Very Good).
Rating: 4-4.5 Stars (Very Good).
October 1, 2019
Muy interesante.
La ganancia es primero, pero primero a leerlo otra vez.
Un libro como el agua, clara, simple e importante para la supervivencia de un negocio/empresa.
La ganancia es primero, pero primero a leerlo otra vez.
Un libro como el agua, clara, simple e importante para la supervivencia de un negocio/empresa.
March 4, 2023
Estas ideas pueden cambiar tu vida. El libro desarrolla muy bien la idea y da suficientes ejemplos para reforzar su propuesta.
El tono tan jovial y simple del autor puede ser molesto en algunas ocasiones.
Me gusta cómo empuja el planteamiento de la historia al principio y el resto del libro es más relleno, necesario, pero al final dispensable.
Recomendable lectura.
El tono tan jovial y simple del autor puede ser molesto en algunas ocasiones.
Me gusta cómo empuja el planteamiento de la historia al principio y el resto del libro es más relleno, necesario, pero al final dispensable.
Recomendable lectura.
October 29, 2021
Empecé una empresa de la nada y sin saber nada de cómo manejar empresas. Está claro que he cometido errores, pero he ido aprendiendo con la marcha. Aquí leí muchas situaciones que ya he pasado, y leer qué hay esperanza y se puede mejorar sí me incita a encontrar nuevas maneras de trabajar y transformar mi negocio.
No existen métodos infalibles ni milagros. Pero debemos empezar a hacer cambios. Punto.
No existen métodos infalibles ni milagros. Pero debemos empezar a hacer cambios. Punto.
December 5, 2024
Cannot recommend this book enough to any one trying to start their company or already running one. Literally like the bible of how to be profitable and live off of your company
September 3, 2020
To be honest, my initial reaction toward books like "Profit First" is marked by suspicion. When I see big promises and lots of hype, the first question that comes to my cynical mind is "What's the catch?" However, I had this book recommended to me by a number of trusted sources, so I decided to give it a shot. And I'm glad I did.
What I discovered is that underneath this book's shell is a rock-solid, common sense principle that can help any business become more profitable. And that principle is best illustrated in a metaphor he uses about toothpaste. What happens when you get a brand new tube? You push out generous helpings onto your toothbrush without thinking twice about it. What happens when you get to the very end of a tube? Two things. You get a lot more frugal in what you squeeze out. And you get creative in how to force more of it out.
Well, folks, that is "Profit First" in a nutshell. It's about intentionally setting aside your profits first, which naturally forces you to approach your operating expenses with more creativity and frugality. It's derived from Parkinson's Law, which states that the demand upon a resource tends to expand to match the supply of the resource. A simple idea that—if intentionally applied over time to your business—can have a transformative impact.
What I discovered is that underneath this book's shell is a rock-solid, common sense principle that can help any business become more profitable. And that principle is best illustrated in a metaphor he uses about toothpaste. What happens when you get a brand new tube? You push out generous helpings onto your toothbrush without thinking twice about it. What happens when you get to the very end of a tube? Two things. You get a lot more frugal in what you squeeze out. And you get creative in how to force more of it out.
Well, folks, that is "Profit First" in a nutshell. It's about intentionally setting aside your profits first, which naturally forces you to approach your operating expenses with more creativity and frugality. It's derived from Parkinson's Law, which states that the demand upon a resource tends to expand to match the supply of the resource. A simple idea that—if intentionally applied over time to your business—can have a transformative impact.
October 2, 2023
There is plenty I still don’t understand but I got the big ideas!
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