Profit First Summary

By Vince Massara

Read the book summary for Mike Michalowicz's Profit First.

The simple accounting method for businesses that can increase your profits by at least 21% 

In this Profit First summary, you'll learn the tips and tricks that you can use today to transform your business' accounting. 

This book summary will condense the key information from Profit First to under an hour. 

• Language: English
• Publisher: Book Summary Club
• Release date: Jul 23, 2019
• ISBN: 9781393194972

Vince Massara

Vince Massara is the founder of The Book Summary Club, which helps business owners make more use of their time and fast-track their learning.  Vince is a trained educator and has a passion for helping people achieve success.

Book preview

Profit First - Michael Michalowicz

The lowdown

The typical way to work out profit is pretty simple."

Sales - Expenses = Profits

While that formula is logically accurate, it doesn't really take into account human nature. Most small business owners look at their bank balance and make decisions based on the amount they see. What this means, is that if you're lucky enough to have some cash at the end, you turn a profit.

However, imagine a way that you could be guaranteed a profit every year. 

In Profit First, we look at the following way to do your accounts:

Sales - Profit = Expenses

Basically you take a predetermined percentage of profit from every sale first and then use only the remainder to pay for your expenses.

About the Author

Michael Michalowicz is an entrepreneur and used to write about small business in The Wall Street Journal.

By his 35th birthday, he had founded and sold two multi-million-dollar enterprises before losing everything by becoming an unsuccessful angel investor.

Michalowicz soon started his third enterprise and worked to build it into a million-dollar venture. He formerly was a business make-over expert on MSNBC and is now a popular keynote speaker on entrepreneurship.

Michalowicz is the author of three books including The Pumpkin Plan and The Toilet Paper Entrepreneur. He is a graduate of Virginia Tech.

Important Note:

This is a summary and not a critique or a review of the book. Now is it the full book. It does not offer judgment or opinion on the content of the