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

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

andreyma Books Reviews

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

BY MIKE MICHALOWICZ

About the book

In this book, author Michalowicz shares the principle of the profit-first approach, which is a revolutionary take on accounting and entrepreneurship. In traditional accounting, business people are taught to subtract the expenses from sales to get the profit. In Michalowicz’s approach, he first subtracts profit from sales to get expenses. In this new approach, he shows how entrepreneurs can turn their businesses into stable cash-earning investments by allocating what remains of their sales into expenses, instead of the other way around. Michalowicz shows how following the Profit First principle can lead to long-term sustainable business.

Review

The Profit First principle is a radical change in handling businesses and actually proves to be a much better approach to entrepreneurship than the traditional one. The author constantly reminds the readers of the ideal thinking, which is Profit First. Michalowicz demonstrates how business owners can get so fixated on growth, which becomes the reason why they unknowingly disregard opportunities for large potential cash flow.

This book is for all individual entrepreneurs, about to begin a business, struggling with cash flow, and downright any entrepreneur who wants to look for a better way in handling their expenses and profit. 

About the Author

MIKE MICHALOWICZ is the cofounder of Profit First Professionals, which is an organization of accountants, business coaches, and bookkeepers that teach the Profit First Method. He has launched and sold 2 multi-million dollar companies and has written for the Wall Street Journal. 

Table of Contents:

INTRODUCTION

CHAPTER 1: YOUR BUSINESS IS AN OUT-OF-CONTROL CASH-EATING MONSTER

CHAPTER 2: THE CORE PRINCIPLES OF PROFIT FIRST

CHAPTER 3: SETTING UP PROFIT FIRST FOR YOUR BUSINESS

CHAPTER 4: ASSESSING THE HEALTH OF YOUR BUSINESS

CHAPTER 5: ALLOCATION PERCENTAGES

CHAPTER 6: PUTTING PROFIT FIRST INTO MOTION

CHAPTER 7: DESTROY YOUR DEBT

CHAPTER 8: FIND MONEY WITHIN YOUR BUSINESS

CHAPTER 9: PROFIT FIRST—ADVANCED TECHNIQUES

CHAPTER 10: THE PROFIT FIRST LIFE

CHAPTER 11: HOW TO KEEP IT FROM FALLING APART

EPILOGUE

ACKNOWLEDGMENTS

APPENDIX 1: THE PROFIT FIRST QUICK SETUP GUIDE

APPENDIX 2: THE INSTANT ASSESSMENT FORM

APPENDIX 3: GLOSSARY OF KEY TERMS

INDEX