Summary of Mike Michalowicz's Profit First

By IRB Media

Get the Summary of Mike Michalowicz's Profit First in 20 minutes.

Please note: This is a summary & not the original book.

Original book introduction: 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.

• Language: English
• Publisher: IRB Media
• Release date: Jan 23, 2021
• ISBN: 9781952482694

IRB Media

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Insights from Introduction

#1

Profit First is a foolproof system for profitability for businesses in any phase. Businesses with no profit are in constant danger of going out of business. This book teaches you how to manage your financials to avoid bankruptcy and continue growing your business.

#2

In the traditional system (sales minus expenses equals profit), you have to sell a lot to make money. It’s like flapping your arms to fly. So you work hard to just sell more stuff. But it doesn’t work as you are not paying attention to your bottom line, the profit!

#3

Profit First will challenge you because you will have to totally change the way you think about business. Chances are you’ll consider trying Profit First, but you’ll tell yourself it’s so much easier to keep doing things the old way, even if it’s slowly sinking you and your business.

#4

Testimonials of people who incorporated Profit First indicate that they are consistently seeing profit increases of up to 1000 percent.

#5

All you need to do is commit to study this and