Profit First or Profit Last?
Mike Michalowicz “mi-CAL-o-witz”, author of Profit First, is not your average guy. He is the famed author of many books, been a reality TV star, build and sold multiple multi-million dollar businesses, lost his entire fortune and acquired it all over again. Whew… Many people know him from his book Profit First which delves into a simple but profound way of looking at your small business finances. It can feel so out of reach sometimes to get the profit out of our businesses and into our pockets that we know we rightfully deserve. Mike makes it simple by doing a quick overhaul of your companies P&L statement. Traditionally we have three things on a profit and loss statement.
- 1: The total revenue (gross sales) located at the top of the page
- 2: The expense section in the middle
- 3: The (hopefully) profit section at the bottom.
In Mikes book he teaches you some simple strategies and tactics to flip this important document almost upside down and the change it produces is borderline magical.
What if you took your profit out first?
Imagine a new P&L that looked like this:
- The total revenue (gross sales) located at the top of the page
- The profit % deducted first and set aside in a secret bank account
- The expense section at the bottom
After deducting your profit you simply need to find a way to run your business on the money that is remaining. Certain psychological laws force us to problem solve and make things work better when we have a smaller amount to work with. When our profit is always available to us we spend it or reinvest it! Not anymore. Join us for a colorful conversation that is just a lot of fun. Connect with Mike HERE