Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

I love efficiency! And in general an envelope system is a great way to do that...but with actual physical envelopes, it gets a little cumbersome.This year, I implemented Profit First in my business as I read this book. It was one of the first books I read.I love the siplicity & actionable steps that Mike provides. Some people have complained that there's nothing ground-breaking here but I tend to disagree.Most people I've worked with as a small business systems consultant need a little help organizing most parts of their business. That includes their money. Whether they're just starting out or have been in business nearly 10 years, some haven't quite figured out how to manage the money in a way that allows them to have some left over at the end. And at the same time, removes the hassle of physical money management (envelopes and cash). Each account makes your numbers visible at a glance!!!This book gives you a system to do just that. Turning a money gobbler into an organized set of pre-assigned buckets for each of your business dollars.For someone who loves both numbers and systems, the Profit First method has given me both. Got to say that having the ability to actually draw a profit in the first quarter this year and KNOWING what that amount should be has been powerful! The emotional ups and downs of running your own business can be challenging. And seeing that profit account grow gives you something to look forward to as you work through the good and the rough days of owning a business!Mike provides guidelines for how to handle the lingering questions about managing the $$ that come up for a lot of business owners. I've shared this book with multiple business owners since reading and implementing it in my own business.If you're in a spot where you're unsure about how to organize your business finances or haven't taken a profit distribution in years, or haven't ever even had a profit to speak of, this book is a great place to get started!!Definitely worth reading! Really glad I implemented it!I've even started using this as a client gift during my process and systems work with clients. And so far, everyone I've sent it to has given it rave reviews as well.

The contents seem intuitive once you read them and yet the constant scenarios and reinforcements in the book bring it to life in a way that really gets you to wonder how you didn't manage your business like this in the first place!

“Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine” by Mike Michalowicz is a true game-changer. The revised and expanded edition takes an already impactful book to new heights.Michalowicz’s approach is refreshingly straightforward and immensely practical. The concept of putting profit first fundamentally shifts the way we think about financial management, offering a roadmap to turn businesses into profitable ventures. The author’s engaging writing style makes complex financial strategies accessible to all readers.This book is a must-read for entrepreneurs looking to revolutionize their financial approach and build a sustainable, thriving business. Michalowicz’s insights are not only enlightening but also actionable, making it an invaluable resource for anyone on the business journey. Highly recommended!

When a friend told me about Profit First, it sounded like a solution for those who had trouble using and understanding GAAP (Generally accepted accounting principles). I had just completed a special bookkeeping project for my friend's business and I had seen the challenges that he faced. The one thing I remember from our conversation was that he had worked over thirty years in his industry and had been successful in selling many units over the years. His question was, "Where's the money?" He is financially successful but thought he should have much more to show for his successful sales career.I decided to buy the book and see for myself what I couldn't wrap my head around from my client's description. I had limited ability to think outside the normal accounting/bookkeeping mode since I've been doing bookkeeping for others and myself for many years and support a number of clients who use proprietary software to maintain their books. Bottom line: I'm glad I read the book and followed the instructions for setting up the specific bank accounts Michalowicz suggests; after I took the quick assessment of one of our businesses, I was able to see where our allocation assumptions had left us--with booked profits but very little cash.Mr. Michalowicz writes from the standpoint of having started a number of businesses and facing the stark reality that if one's expenses aren't allocated correctly, the business is often just breaking even or less. Putting aside allocated profit first requires the business owner to then take a sharp pencil to his/her expenses and allocate them in percentages that are in line with the profit allocation he/she has set.I've only just begun to use this system and can see results from it already. It makes sense since I take the profit off the top of each sale and effectively get it out of site so I'm not tempted to spend it when the squeeze is on. It's an entirely different way of thinking for me in our businesses; instead of Income-expenses=Profit; Income-Profit=Expenses. Then it's up to the business owner(s) to work on suggested expense allocations to get them in line with the profit allocation chosen. In the (Almost) Instant Assessment, the author offers suggested expense allocations based on the size of the enterprise. This book has enough accounting and economics argot to satisfy the accounting purist, but will also make sense to guy or gal who finds all that "accounting stuff" boring and even irritating---" I'm out there selling every day; you (bookkeeper) just make it work!"Mike Michalowicz writes in an easy, declarative style, using humor, often self-deprecating, and anecdotes from his work and family life (the piggy bank story is both poignant and instructive). He shares his own stories of learning through mistakes, does not make grandiose claims, and fairly early on in the book asks the reader to send him a personal email stating, "I've drawn the line in the sand," thereby committing the reader's business to profitability. I did that, by the way, and got a response from Mike. There was something about the challenge that took me back to the movie Network when news anchor Howard Beale tells his listeners to open their windows and shout, " I'm mad as hell and I'm not going to take it anymore.” The commonality is that both actions were about lines drawn in the sand.This book is an easy and captivating read. I felt as if I knew the writer because of his candor and style, and recommend the book to anyone with a business, especially if you've ever seen a disconnect between what your accountant tells you about the profitability of your business and the money in the bank at the end of a "profitable" year.

Great strategies on how to successfully design your business to pay yourself first. I will implement his strategy.

Amazing book

Profit First by Mike Michalowicz is an eye-opener, turning the often daunting task of managing business finances into a simple, engaging process that truly helps prioritize profit and boost financial well-being.I recommend!

Ótima leitura, estimula a encarar os pequenos e médios negócios de outra forma.

If you are a business owner (or are planning to be one) and think that revenue is growth, and growth is profit, you should read this.

Even though I’m finance guy, I find this approach good! It really works! One of books I’m using now daily !

If you don’t read it you will not understand what is the quality in it , Excellent Author 🙏