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.
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:
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
APPENDIX 1: THE PROFIT FIRST QUICK SETUP GUIDE
APPENDIX 2: THE INSTANT ASSESSMENT FORM
APPENDIX 3: GLOSSARY OF KEY TERMS