I have read probably thousands of business books in my 40-year accounting career. Because of that, it is unusual for any book to be so innovative that I recommend it to all of my business owners. Profit First by Mike Michalowicz is one of those.
I have purchased and read all of Mr. Michalowicz’s previous books, The Toilet Paper Entrepreneur, The Pumpkin Plan, and Surge, so I had a pretty good idea what his take on business was. But Profit First surprised me. Here the author was offering a unique but simple explanation as to why most businesses don’t survive and those that do continue to struggle. More importantly, he gave a simple solution to the lack of profits.
As a profit coach I must admit that I was skeptical about the idea of taking my profits first and forcing the business to survive on what was left. I believed it was too simplistic an approach to fixing the problem. But as I continued to read, I started to “see” the change and the advantage the Profit First method offered to small business owners.
I tested it with a couple of my clients. Then I started using it in my business. The change that comes from taking your profit first rather than treating it like an afterthought has helped transform my business and those of my clients.
But that is not all he teaches!
- His four principles simplify accounting and make it easier for the business owner to manage a profitable business just by looking at bank account balances. Finally the business owner will have a simple way to manage their business without waiting for the accountant to finish the books.
- Taking your profit first both enforces frugality and inspires industry-changing innovation. He offers many case studies and tips on how to implement the changes.
- He offers a simple method for cutting overhead costs, one of the easiest to understand that I have seen.
I am recommending this book to all of my clients and strongly believe that every business owner should buy and read this book at least twice! But more importantly, start implementing the Profit First theories and watch your business grow.