Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine Audible Audiobook – Unabridged
The 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, listeners will learn that:
- Following four 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.
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|Listening Length||8 hours and 35 minutes|
|Audible.com.au Release Date||21 February 2017|
|Publisher||Gildan Media, LLC|
|Best Sellers Rank||
688 in Audible Books & Originals (See Top 100 in Audible Books & Originals)
1 in International Accounting (Books)
5 in Small Businesses
8 in Job Hunting & Career Guides
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Top reviews from Australia
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Don't get me wrong, the Profit First concept is great but author needs to learn how to write it in a concise way.
By Alison Rogers on 7 September 2019
But wow, really glad I took the time to read this. Totally changed my thinking about how I think about my businesses finances and how I price my services! Looking forward to seeing the system at work in my business, it makes complete sense.
Top reviews from other countries
I trained with KPMG Chartered Accountants in the 80's so I'm familiar with the idea that Revenue - Expenses = Profit, but the simple idea of rewriting this as Revenue - Profit = Expenses, seems so simple and yet it's a huge paradigm shift.
I bought the book initially on Audible, read it in two days, then bought the hard back on Amazon, and then signed up for the course with Creative LIve. I also wrote to Mike with a question, which he responded to within hours, twice. The one thing that surprised and delighted me this morning was that someone who I perceive as being an expert, could be so approachable, and so freely respond to my question, with no agenda. I feel extremely grateful to Mike for his work and his prompt, thoughtful reply. I've been recommending the book to all my friends and fellow entrepreneurs. It is now one of my favourite finance books. A must read for anyone in business.
Some books are life-changing, and I think this is one of them. I loved it. Because, like many business owners, I often don’t really know what’s going on with my numbers... and that’s a problem.
Maybe this sounds familiar to you: “You’ve done great! You’ve made a profit of [lots of moolah] after taxes and expenses!” And you do a little jig, because how cool is that?
Only... where is that money? It’s certainly not sitting in a fat pile in your bank account, is it? So you look at your accountant, perplexed, and say, “Wait. I’ve made all that profit... but where is it?”
“Oh, it’s gone,” she says airily. “You’ve spent it.”
“What? How can it be profit then?”
At which point your head explodes.
Well, this is the book you need to read. It helped me understand exactly what's going on.
The author has been in exactly our position – and much, much worse. He’s gone from millions in the bank to his last few quid – then lost that. And he’s been as confused as the rest of us.
So he wrote this book to come up with a system that works for real humans. Because (sorry accountants!) most of us business owners do not and will not ever think like accountants. We will not sit for hours poring over statements and spreadsheets and profit and loss calculations. We just won’t.
So the author came up with the Profit First system. My accountant tells me it’s the accounting system under another name, but that’s the point. He uses normal-people words, ideas, and examples. He takes accounts and puts them in a format I can understand – and gives me a system I can not only understand but will actually use.
When you’ve read the book, do the things the author tells you to do. Do the instant assessment of your business. It’ll hurt, but only briefly – then you can start to fix things. This is one of those things you won’t want to do because it’s scary. But once you face the music and know exactly what’s what, it’s like a huge weight has been lifted.
This is a beautifully simple book that takes a complicated subject and makes it easy to understand for those of us who can't get their heads around traditional accounts.
I get the basic premiss: Put the focus on profit. Know what your profit really is, after expenses, so you don't over-spend and go from elaborate spending to scrimping and saving, backwards and forwards...
But I think I prefer the simpler system, which is: Constantly try to save more money. Reduce expenses as low as they can go. It's working for me anyhow.
In short: If you're not prepared to do some pretty radical stuff involving your finances and bank accounts, don't bother getting the book.
This year am committed to understanding and managing my finances and making a profit in my business.
By staying open and listening to my heart and taking the first steps, reading Profit First and watching the YouTube videos...and opening my Profit First account...I feel confident in achieving my heart's desire.
Mike has written a gem of a book which shows you how easy it is to manage your finances. I am excited and will be 're-reading and applying the techniques and mind set shifts as I go along.
Highly recommend this book if you are looking for ways to reduce your debt and live a profitable and fun life, without stress or struggle. Thank you.
Finance has always been one of the biggest challenges of growing a business and I've always found it way too complex.
The other big problem is that all you focus on is making profit, and you only find out if you've made a profit retrospectively.
What I love about the Profit First system is that you focus on ensuring you make a profit from day one.
We've also believed in the idea that you need to re-invest to build the business and while that has been a success, I can now see that we could have continued to grow the business, provide a great service to our clients and achieve what we wanted, while still making a healthy profit along the way.
I honestly wish I'd read this 10 years ago... It's a top 10 must read business book for me and I've read a lot.
Focus on making a consistent profit and the rest becomes a great deal easier...