Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

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Product Description

Author of cult classics The Pumpkin Plan and The Toilet Paper Entrepreneur offers a simple, counterintuitive cash management solution that will help small businesses break out of the doom spiral and achieve instant profitability.

Conventional accounting uses the logical (albeit, flawed) formula: Sales - Expenses = Profit. The problem is, businesses are run by humans, and humans aren''t always logical. Serial entrepreneur Mike Michalowicz has developed a behavioral approach to accounting to flip the formula: Sales - Profit = Expenses. Just as the most effective weight loss strategy is to limit portions by using smaller plates, Michalowicz shows that by taking profit first and apportioning only what remains for expenses, entrepreneurs will transform their businesses from cash-eating monsters to profitable cash cows. Using Michalowicz''s Profit First system, readers will learn that:

· Following 4 simple principles can simplify accounting and make it easier to manage a profitable business by looking at bank account balances.
· A small, profitable business can be worth much more than a large business surviving on its top line.
· Businesses that attain early and sustained profitability have a better shot at achieving long-term growth.

With dozens of case studies, practical, step-by-step advice, and his signature sense of humor, Michalowicz has the game-changing roadmap for any entrepreneur to make money they always dreamed of.

Review

Praise for Profit First

“Quit being a slave to your own business and start making some serious money. Follow Mike’s counter-intuitive advice and put profits first.”
--VERNE HARNISH, author of Scaling Up

Profit First is a brilliant smack-upside-the-head revelation for entrepreneurs. Most small businesses look pretty good on the outside, yet actually struggle to stay afloat. With fascinating stories and wit, Michalowicz shows how to remove your nose from the grindstone, climb out of the quicksand, and build a business that loves you back.”
—SALLY HOGSHEAD, author of Fascinate

Profit First may arguably be one of the greatest ‘hacks’ of all time. Apply the pay-yourself-first principle to your business and watch the profits roll in.”
—CHRIS GUILLEBEAU, author of Born for This and The $100 Startup
 
" Profit First is a game-changer. I implemented the system into both of my businesses and increased profits by 21%. If you want to turn a profit and grow your business, you need this book."
—MICHAEL PORT, author of Steal the Show
 
" Profit First completely transformed how I handle business banking. I hadn''t even finished the book before immediately putting a four-account distribution system in place for new income: operating expenses, owner expenses, taxes and profit. Mike''s system moved me from break-even to profitable within a month. This book is a must-read for businesses large and small."
—JENNY BLAKE, author of Pivot
 
“Twenty-five percent of small businesses have two weeks or less of cash in the bank. Seventy-five percent of businesses have a month or less of cash in the bank. Profit First disciplines show you the roadmap to avoid becoming a statistic. This book has the potential to change the next 20 years of your small business life.”
—DAWN FOTOPULOS, Associate Professor of Business, The King’s College NYC; author of Accounting for the Numberphobic
 
Profit First is a revelation. I only wish I knew about this system when I started my first business.”
—JOHN JANTSCH, author of Duct Tape Marketing and SEO for Growth

“Entrepreneurs commonly confuse cash flow with profitability. Profit First makes the process so radically simple that you no longer have an excuse not to be profitable AND have cash flow!”
—GREG CRABTREE, author of Simple Numbers, Straight Talk, Big Profits

“Not only is Mike one of the most innovative small business authors of our time, his Profit First system—simple to apply and impactful in its results—can be the difference between constantly walking the financial tightrope or being predictably profitable. And a predictably profitable business is not only less stressful and more gratifying, it allows you to focus on what really matters… serving your customers!”
—BOB BURG, coauthor of The Go-Giver and The Go-Giver Leader

"Why are so few businesses actually profitable for their owners? Profit First turns accepted wisdom on its head and shows the real reason business owners struggle with the bottom line. This book shows you how to take home more money almost immediately."
—DORIE CLARK, author of Stand Out

“Finance is the top headache of an entrepreneur. Profit First is a must-read to avoid bankruptcy for great business ideas. Clever, easy to implement and absolutely effective (plus you will enjoy reading it).”
—SOFIA MACIAS, author of Pequeño Cerdo Capitalista

“Entrepreneurs and small business advisors finally have a practical toolkit for increasing profitability! Everyone who touches the small business world should read and apply these game-changing principles.”
—JOE WOODARD, CEO of Woodard Events and Woodard Consulting

“I took the pledge and started implementing the Profit First system after reading Chapter One. By the time I was halfway through the book my business had already turned a profit.”
—BARRY MOLTZ, author of How to Get Unstuck

About the Author

MIKE MICHALOWICZ launched and sold two multi-million dollar companies and is co-founder of Profit First Professionals, a membership organization of accountants, bookkeepers and business coaches who teach the Profit First method. He is a former columnist for The Wall Street Journal, is a popular speaker and has shared his insights on business and entrepreneurship at TEDx, creativeLIVE, INCmty and others. He is the author of The Pumpkin Plan and The Toilet Paper Entrepreneur. His columns have appeared in Entrepreneur Magazine, Open Forum, and Harvard Business Review.

Excerpt. © Reprinted by permission. All rights reserved.

Chapter 1

Your Business Is an Out-of-Control Cash-Eating Monster

No matter how many years you''ve been at the grind, you are probably well aware of the statistic that roughly 50 percent of businesses fail within the first five years. What they don''t tell you is that those failed entrepreneurs are, in fact, the lucky ones! The majority of the businesses that survive are racking up debt, and their leaders are perpetually stressed. Most entrepreneurs are living a financial nightmare, one that''s populated by Freddy Krueger or Frankenstein''s monster in its raw, unadulterated scariness. In fact, I am convinced that I am Dr. Frankenstein.

If you read Mary Shelley''s classic, Frankenstein, you know exactly what I''m talking about. The good doctor reanimated life. From mismatched body parts, he stitched together a living being more monster than man. Of course his creation wasn''t a monster at first. No, at first it was a miracle. Dr. Frankenstein brought to life something that, without his extraordinary idea and exhaustive hard work, could not exist.

That''s what I did. That''s what you did. We brought something to life that didn''t exist before we dreamed it up; we created a business out of thin air. Impressive! Miraculous! Beautiful! Or at least it was until we realized our creation was actually a monster.

Stitching together a business with nothing but a great idea, your unique talents, and whatever few resources you have at hand is most certainly a miracle. And it feels like one, too, until the day you realize your business has become a giant, scary, soul-sucking, cash-eating monster. That''s the day you discover that you, too, are an esteemed member of the Frankenstein family.

And just as happened in Shelley''s book, mental and physical torment ensues. You try to tame the monster, but you can''t. The monster wreaks destruction at every turn: empty bank accounts, credit card debt, loans, and an ever-increasing list of "must-pay" expenses. He eats up your time, too. You wake up before sunrise to work, and you''re still at it long after the sun goes down. You work and work, yet the monster continues to loom. Your relentless work doesn''t free you; it further drains you. Trying to keep the monster at bay before it destroys your entire world is exhausting. You suffer sleepless nights, worries about collection calls-sometimes from your own employees-and a near-constant panic about how to cover next week''s bills with a few dollars and the lint in your pocket. Didn''t you start a business so you could be your own boss? Now it looks as though this monster is the boss of you.

If you think operating your business is closer to a horror story than to a fairy tale, you''re not alone. Since I wrote my first book, The Toilet Paper Entrepreneur, I''ve met tens of thousands of entrepreneurs; and let me tell you, most are struggling to tame the beast that is their business. Many companies-even those that appear to have it all together, even the big guys who seem to dominate their industries-are one bad month away from total collapse.

My own wake-up call came in the form of my daughter''s piggy bank.

The Piggy Bank That Changed My Life

I lost my way the day I received a check for $388,000. It was the first of several checks I would receive for the sale of my second company-a multimillion-dollar computer forensic investigations business I had cofounded-to a Fortune 500 firm. I had now built and sold two companies, and that check was all the proof I needed that my friends and family were right about me: When it came to growing businesses, I had the Midas touch.

The day I received the check, I bought three cars: a Dodge Viper (my college-fantasy dream car, and what I have subsequently found many people identify as the "that-guy-must-have-a-tiny-penis" car), something I''d promised I would get for myself "one day" when I''d "made it," a Land Rover for my wife, and a spare-a tricked-out BMW.

I had always believed in frugality, but now I was rich (with an ego to match). I joined the private club: the one where, the more money you give, the higher they place your name on the members'' wall. And I rented a house on a remote Hawaiian island so my wife, my children, and I could spend the next three or so weeks experiencing what our new lifestyle would be like. You know, "how the other half lives."

I thought it was time to revel in the money I had created. What I didn''t know was that I was about to learn the difference between making money (income) and taking money (profit). These are two very, very different things.

I launched my first business on ambition and air, sleeping in my car or under conference room tables in order to avoid the cost of hotels when visiting clients. So imagine the surprised look from my wife, Krista, when I asked the sales guy at the dealership for "the most expensive Land Rover you have." Not the best Land Rover. Not the safest Land Rover. The most expensive Land Rover. He skipped his way to the manager, doing a giddy hand clap.

Krista looked at me and said, "Have you lost your mind? Can we really afford this?"

Full of snark, I said, "Can we afford it? We have more money than God." I will never forget the stupidity coming out of my mouth that day; such disgusting words, such a disgusting ego. Krista was right. I had lost my mind-and, at least for the moment, my soul.

That day was the beginning of the end. I was well on my way to discovering that while I knew how to make millions, what I was really, really proficient at was losing millions.

It wasn''t just the lifestyle I bought into that caused my financial downfall-the trappings of success were a symptom of my arrogance-I believed in my own mythology. I was King Midas reinvented. I could do no wrong. And because I had the golden touch and knew how to build successful businesses, I decided that investing in a dozen brand-new start-ups was the best way to use my windfall. After all, it was only a matter of time before my entrepreneurial genius rubbed off on these promising companies.

Did I care whether the founders of these companies knew what they were doing? No-I had all the answers (read that with a massive douche emphasis). I assumed that my golden touch would more than compensate for their lack of business expertise. I hired a team to manage the infrastructure of all these start-ups-accounting, marketing, social media, Web design. I was sure I had the formula for success: a promising start-up; the infrastructure; and my incredible, superior magic touch (more douche emphasis).

Then, I started writing checks-$5,000 to one person, $10,000 to another, every month more checks, and still more. One time, I cut a check for $50,000 to cover expenses for one of these companies. I was focused on one thing and one thing only: growth. Mindlessly throwing money at start-up companies wasn''t even in alignment with my values about money; I was a bootstrapper and proud of it. Still, I was blind to my mistakes. I was all pump and dump. Grow the businesses, then sell them. In retrospect, it was clear that I would not be able to grow all of these companies to the point where they would eventually become niche authorities, as I had with my two previous companies. There was never enough revenue to cover the ever-increasing mountain of bills.

Because of my massive ego, I didn''t allow the good people who started these businesses to become true entrepreneurs. They were just my pawns. I ignored the signs and kept funneling money into my investments, sure that King Midas would be able to turn it all around.

Within twelve months, all of the companies I''d invested in, except one, had gone belly up. When I started writing checks to pay bills for companies that had already folded, I realized that I was not an angel investor; I was the Angel of Death.

It was a monumental disaster. Scratch that; I was a monumental disaster. Within a couple of years, I lost nearly every penny of my hard-earned fortune. Over half a million in savings gone. A much larger (embarrassingly larger) amount of investment money gone. Worse, I had no incoming revenue. By February fourteenth of 2008, I was down to my last $10,000.

I will never forget that Valentine''s Day. Not because it was so full of love (even though it was), but because it was the day I realized that the old adage "When you hit rock bottom, the only way to go is up" is total bullshit. I discovered that day that when you hit rock bottom, sometimes you get dragged along the bottom, scraping your face on every one of those rocks until you''re battered, bruised, and bloodied.

That morning I got a call at my office from Keith, my accountant (not to be confused with Keith, the hot-air balloon guy). He said, "Good news, Mike. I got a jump start on your taxes this year and just finished your return for 2007. You owe only twenty-eight thousand dollars."

I felt a sharp pain in my chest, like a knife stabbing me. I remember thinking, "Is this what it feels like to have a heart attack?"

I would have to scramble to get the $18,000 I didn''t have, and then figure out how to cover my mortgage the next month plus all of the small recurring and unexpected expenses that added up to a whole lot of cash.

As Keith wrapped up the call, he said that the bill for his services would arrive on Monday.

"How much?" I asked.

"Two thousand."

I felt the knife twist. I had $10,000 to my name and bills totaling three times that amount. After I ended the call, I put my head on my desk and cried. I had gone so far astray from my values, from who I was at my core, that I had destroyed everything. Now, not only could I not pay my taxes; I had no idea how I would provide for my family.

At the Michalowicz household, Valentine''s Day is a legit holiday-on a level with Thanksgiving. We have a special dinner together, exchange cards, and go around the table sharing stories about what we love about each other. This is why Valentine''s Day is my favorite day of the year. Typically, I would come home with flowers, or balloons, or both. That Valentine''s Day I came home with nothing.

Though I tried to hide it, my family knew something was wrong. At the dinner table, Krista asked me if I was OK. That was all it took for the dam to break. The shame was too great. I went from offering up forced smiles to sobbing in a matter of seconds. My children stared at me, shocked and horrified. When I finally stopped crying enough to speak, I said, "I lost everything. Every single penny."

Total silence. I slumped over in my chair; the shame was too great for me to face my family, not when all the money I had earned to support them was gone. Not only had I failed to provide for my family; my ego had stolen it all away. I felt pure, unadulterated shame about what I had done.

My daughter, Adayla, who was nine years old at the time, got up from the table and ran to her bedroom. I couldn''t really blame her-I wanted to run away, too.

The silence continued for two painfully awkward minutes until Adayla walked back into the room carrying her piggy bank, the one she had received as a gift when she was born. It had clearly been cared for; even with all those years of use, there wasn''t a single chip or crack on the bank. She had secured the rubber stopper in place with a combination of masking tape, duct tape, and rubber bands.

Adayla set her piggy bank down on the dining room table and slid it toward me. Then she said the words that will stay with me until the day I die:

"Daddy, we''re going to make it."

That Valentine''s Day I woke up feeling like Debbie Horovitch felt after her Instant Assessment: like a fool. But by the end of the day I''d learned what net worth really is, thanks to my nine-year-old daughter. That day I also learned that no amount of talent, ingenuity, passion, or skill would change the fact that cash is still king. I learned that a nine-year-old girl had mastered the essence of financial security: save your money and block access to it so it doesn''t get stolen-by you. And I learned that I could tell myself that my natural aptitude for business, my relentless drive, and my solid work ethic could overcome any cash crisis, but it would be a lie.

Running the Instant Assessment can be like having a bucket of ice water dropped on your head (if you did the "ice bucket challenge" a couple of years ago, you know the spine-shuddering chill I am talking about). Or it can seem like the most humbling moment of your life, like when your daughter volunteers her life savings to save you from the mess you made. But no matter how sharp the pain is, it''s better to face it than continue to live and operate your business in denial.

Money Problems

You have probably put a lot of work into growing your business. You are probably good or great at that part. That''s awesome. And that''s surely half of the equation. But colossal growth without financial health will still kill your company. With this book, you have an opportunity to master money.

Money is the foundation. Without enough money, we cannot take our message, our products, or our services to the world. Without enough money, we are slaves to the businesses we launched. I find this hilarious because, in large part, we started our businesses because we wanted to be free.

Without enough money, we cannot fully realize our authentic selves. Money amplifies who we are. There isn''t a single ounce of doubt in my mind that there is something big you are intended to do on this planet. You wear the cape of what I believe is the greatest of all superheroes: the Entrepreneur. But your superhero powers can only yield as much power as your energy source provides. Money. You need money, superhero.

When I sat down to evaluate where I went wrong, I realized that while my own spending and arrogance definitely played a part, I also lacked knowledge. I had mastered how to grow businesses quickly, yet I never really graduated to understanding profitability. I had learned how to collect money, for sure, but I had never learned how to keep it, how to control it or how to grow it.

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4.8 out of 54.8 out of 5
5,282 global ratings

Top reviews from the United States

J. Johnston
3.0 out of 5 starsVerified Purchase
The envelope method for businesses
Reviewed in the United States on January 28, 2019
I bought Profit First because of the overwhelmingly positive reviews I''d read from other people, not including the many positive reviews here on Amazon. Phrases like "life-changing," "it changed my business," and "pure genius" were among the many accolades heaped on this... See more
I bought Profit First because of the overwhelmingly positive reviews I''d read from other people, not including the many positive reviews here on Amazon. Phrases like "life-changing," "it changed my business," and "pure genius" were among the many accolades heaped on this little book. So I took the plunge.

How much you get out of this book will probably depend entirely on 1) your personality and 2) the health of your business. If, for example, your business -- and your sanity -- is on financial life support, or you really struggle with maintaining spending discipline in your business, then this book really can be useful. He lays out a fairly meticulous case, early on, that many entrepreneurs are so fixated with growth that they fail to see the opportunity for profit right in front of them ... and thus find themselves sitting on the brink of ruin despite having a massive cash flow.

The solution, he explains, is to essentially set profit (and taxes) at non-negotiable levels and bend the rest of the budget to accommodate that. To get there, he prescribes what is basically a business-version of an envelope system. (In my head, I immediately thought, "this is basically Dave Ramsey for businesses.") By piecing out your various expenditures among separate bank accounts -- his version of envelopes -- you can start to re-prioritize your spending, moving toward a business that is better balanced for making a profit. In the later chapters, he gets more specific about percentages and how to nudge toward a healthier balance without upsetting all the moving parts, and people, of an existing business. There are elements of the book that feel more like filler than substance, but I can also see where despairing readers may need some of that cheerleading, and I give the author props for having some decent support materials over at his website to help implement the book''s advice.

There is still another class of entrepreneur, though, and that''s one who is disciplined, purposeful, and has a steady vision for their business. Those sorts of people are probably not going to get as much out of Profit First. They may glean some things (including, perhaps, some affirmation that they''re on the right track) but a lot of the book is going to be, at best, not for them. At worst, some people may look at the Profit First system as an unnecessary, time-consuming hassle of financial gatekeeping, not unlike how an individual who uses their credit card responsibly and with discipline might decide the extra financial hurdles of the Dave Ramsey cash-only envelope system isn''t for them. Do some people benefit from having their assets in seven accounts across two different banks, the way Profit First suggests? Sure. Does everyone? I''m not so sure about that at all.

So is Profit First for you? In my opinion, the best way to figure that out might be to go and check out some of the author''s resources on his site first, and see if that resonates with you. The book may have particular value if you''re in a place where you''re generating a lot of revenue but you don''t have much to show for it. On the other hand, if you''re a meticulous soul who has a clear grasp of where your business revenue should be going -- and you''ve got the self-discipline to get there -- I would be wary about getting this book unless it was deeply discounted.
400 people found this helpful
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Gifted Guru
5.0 out of 5 starsVerified Purchase
The most important business book I own
Reviewed in the United States on June 13, 2017
I feel like a convert to a new religion after reading this book. I have told everyone I know who owns their own business about it, and here''s why: A friend/colleague recommended it to me, and I ordered it on that gateway drug, Amazon Prime. It came that night... See more
I feel like a convert to a new religion after reading this book. I have told everyone I know who owns their own business about it, and here''s why:

A friend/colleague recommended it to me, and I ordered it on that gateway drug, Amazon Prime. It came that night (!), and I devoured it like a T Rex that hadn’t eaten in a year.

It was an easy thing for me to commit to because I already had a separate tax account and knew how that benefitted me. It only made sense that others would be a good idea as well. I travel a lot for my work, and I’ve really struggled with balancing that reimbursement.

I own an educational consulting business, and I''ve really struggled with handling the ebb and flow of the money. I make 70% of my income in two months out of the year, and that''s always been a stress to me.

Friends, the answer is in this book. It took me less than half an hour to set it all up, and it''s as smooth as a freshly shaved leg with really good moisturizer on it.

The biggest difference, really, isn''t even in the numbers: the biggest difference for me is in the weight off of my mind. I KNOW what will happen. I don''t have to think about everything all of the time (Where will this go? When should I pay that? Okay, if I they pay that invoice, I can pay for this upcoming travel.. and on and on).

It''s no coincidence the name Michael means "like unto God." His ideas have transformed my business - quite literally overnight as I was reading at 3am. Is a finance crush a thing???

This book is for you if you:
- run your own business
- have thought about starting a business
- struggle with cashflow
- feel like something is always chasing you in your business
- feel like you''re never ahead, you can never breathe
- want a super simple way to end that in manner of Charlie from Charlie''s Angels ("But I took them away from all that, and now they work for me...")

Seriously, read the book. Read the book. Do the exercises. Implement the plan. You will have a financial awakening that will be the best thing since, I don''t know, something really good.

A must, must read.
296 people found this helpful
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BMP
2.0 out of 5 starsVerified Purchase
Could not finish
Reviewed in the United States on August 28, 2018
I did not like this book. It was super repetitive saying the same things over and over and over. I could not even finish it. I wish I could return it! Also this book is strictly written for business who do not profit at all. I thought it would be helpful for any business... See more
I did not like this book. It was super repetitive saying the same things over and over and over. I could not even finish it. I wish I could return it! Also this book is strictly written for business who do not profit at all. I thought it would be helpful for any business to help have more profit but it''s only for business who don''t ever make a profit and even then it''s a hard read. I then tried listening to the pumpkin plan mentioned in his book and it''s completely written for a male audience as if women don''t have business. The gross jokes were enough for me to not like this author.
167 people found this helpful
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Drew McCoy
1.0 out of 5 starsVerified Purchase
One semi-bright idea lost in a sea of bad writing and worse advice. Don''t waste your time.
Reviewed in the United States on April 11, 2018
TLDR: x - y = z and therefore z - y = x income minus expenses equals profit and therefore profit minus expenses equals income. viola, you''ve read the book. The only truly actionable advice fond inside is as follows: if the profit you take is... See more
TLDR: x - y = z and therefore z - y = x
income minus expenses equals profit and therefore profit minus expenses equals income.
viola, you''ve read the book.

The only truly actionable advice fond inside is as follows: if the profit you take is unsatisfactory, take a tiny bit more now and a little bit more later and it will add up.
Wow. Speechless.

That amazing gem is backstopped by enough thought to fully flush out a bi-fold brochure, but somehow spread across some 150 pages.
Some of that pap that fills the rest of the space is downright terrible advice about how to cut overhead down to a nub, fire your employees and your "bad" customers.

In the end it''s one tiny nugget of an obvious idea surrounded by fluff that is spiked with downright bad advice.

It''s a sales brochure for Mike''s misguided services.

Most books of this stripe AT LEAST put some punch into their "You TOO can be rich soon!" anecdotes. The personal and business stories in here are truly bad, even for inspirational business books.

Awful. Truly Awful.
212 people found this helpful
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PeggyTop Contributor: Baby
5.0 out of 5 starsVerified Purchase
A different way of approaching income!
Reviewed in the United States on July 31, 2019
This book will change the way you think about running your business - and your life. Most of the book is on how to take out the profit of your business before you take out the expenses. It''s an interesting and different way to approach finances for your business. The... See more
This book will change the way you think about running your business - and your life. Most of the book is on how to take out the profit of your business before you take out the expenses. It''s an interesting and different way to approach finances for your business. The author also gives strategies for "the profit first life," which I found especially helpful. His plan involves destroying your debt and taking out money (profit) first, to assure you can have financial freedom in the future. This is an excellent book, but like any self-help book, it will only change your life if you can actually implement the ideas. I highly recommend this book. Please mark if you find my review helpful. Thank you so much!
64 people found this helpful
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Edgar Akopyan
1.0 out of 5 starsVerified Purchase
Do Not Waist Your Time - There Is Nothing Here
Reviewed in the United States on September 7, 2018
Instead of teaching how to simplify running your business on a daily base the author''s advice is to open up gazillion accounts for every little expense you got. Sorry, Mike but I don''t see how you can be profitable by just opening up a bunch of unnecessary accounts. I just... See more
Instead of teaching how to simplify running your business on a daily base the author''s advice is to open up gazillion accounts for every little expense you got. Sorry, Mike but I don''t see how you can be profitable by just opening up a bunch of unnecessary accounts. I just don''t get the logic. This book is misleading and unpractical.
I love to finish all the books I start but I could not finish this one. You are better off reading Profit''s Aren''t Everything, They Are The Only Thing by George Cloutier. This is an action book that tells you how to tackle down profits.
58 people found this helpful
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Jamie Rosenblum-Amsel
5.0 out of 5 starsVerified Purchase
Mike has written a very easy to read
Reviewed in the United States on March 9, 2017
This book is a must read for anyone interested in starting a business or is already a business owner. Heck this book will help you even if you use it for your personal finances. Mike has written a very easy to read, page turner that you will not be able to put down! As a... See more
This book is a must read for anyone interested in starting a business or is already a business owner. Heck this book will help you even if you use it for your personal finances. Mike has written a very easy to read, page turner that you will not be able to put down! As a reader of well over 1,000 business books, this one is in my top ten for sure!

I am an accountant, I own my own business and I absolutely love this book! You might be wondering why an accountant would like this book. This book teaches a cash management strategy that runs parallel to using accounting software. Seemingly it is circumventing the system that us accountants love. Well let me tell you why that is plain wrong.

Business Owners: For years, us accountants have been trying to teach our clients the business owners to run their business using the data in their accounting software and for years business owners have failed to thrive and simply manage sale to sale and payroll to payroll. I have personally witnessed these same business owners implement the stupidly simple strategy this book teaches and completely change the trajectory of their business and their financial position. Whether you are brand new to business or have been in business for years, if you take action on the system taught in this book, your life will be forever changed!

Accountants: Read this book before you make a judgment call on this system. I am sure that you will love every page of it. Mike does a great job of explaining all the human psychology driving the Profit First system. He encourages business owners to continue to use their accounting software and their accountants in conjunction with their Profit First implementation. If you embrace this method, it will bring you more business and more clients.
137 people found this helpful
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Michael A.Ciavolino Jr.
5.0 out of 5 starsVerified Purchase
If there is one book you buy as a business owner - this should be it.
Reviewed in the United States on March 15, 2017
I''ve read countless books on how to improve your business: How to work harder, how to work smarter, how to work longer and how to be focused. We''ve all read them, correct? This book is not only different, its a difference maker and the content therein can mean the... See more
I''ve read countless books on how to improve your business: How to work harder, how to work smarter, how to work longer and how to be focused. We''ve all read them, correct? This book is not only different, its a difference maker and the content therein can mean the difference between a failed business and a highly profitable business.

Not only does the author provide an easy-to-use formula - so simple a non-financial person can easily understand it and embrace it - but he does so in an engaging, thoughtful and collegial way. As I was reading it, it was like Mike was speaking directly to me and exactly about my business.

I''ve never read a book that has had as much impact on myself and my business. I highly recommend Profit First for any business of any size that wants to run more efficiently and starting earning more Profit First today!
61 people found this helpful
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Top reviews from other countries

Maxine
5.0 out of 5 starsVerified Purchase
Taking Pay yourself first to another level!
Reviewed in the United Kingdom on November 7, 2017
I LOVE this book! I''ve been following the work of T Harv Eker and Ann Wilson regarding how to manage my personal finances for a number of years, and this book takes the simple idea of Paying yourself first to another level, specifically for your business. I trained with...See more
I LOVE this book! I''ve been following the work of T Harv Eker and Ann Wilson regarding how to manage my personal finances for a number of years, and this book takes the simple idea of Paying yourself first to another level, specifically for your business. I trained with KPMG Chartered Accountants in the 80''s so I''m familiar with the idea that Revenue - Expenses = Profit, but the simple idea of rewriting this as Revenue - Profit = Expenses, seems so simple and yet it''s a huge paradigm shift. I bought the book initially on Audible, read it in two days, then bought the hard back on Amazon, and then signed up for the course with Creative LIve. I also wrote to Mike with a question, which he responded to within hours, twice. The one thing that surprised and delighted me this morning was that someone who I perceive as being an expert, could be so approachable, and so freely respond to my question, with no agenda. I feel extremely grateful to Mike for his work and his prompt, thoughtful reply. I''ve been recommending the book to all my friends and fellow entrepreneurs. It is now one of my favourite finance books. A must read for anyone in business.
64 people found this helpful
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Vicky Fraser
5.0 out of 5 starsVerified Purchase
A tough wake-up call for business owners – and a simple system to improve and thrive
Reviewed in the United Kingdom on January 18, 2019
Oooof. This book made me take a long, hard look at my finances and I did not like what I saw. Some books are life-changing, and I think this is one of them. I loved it. Because, like many business owners, I often don’t really know what’s going on with my numbers... and...See more
Oooof. This book made me take a long, hard look at my finances and I did not like what I saw. Some books are life-changing, and I think this is one of them. I loved it. Because, like many business owners, I often don’t really know what’s going on with my numbers... and that’s a problem. Maybe this sounds familiar to you: “You’ve done great! You’ve made a profit of [lots of moolah] after taxes and expenses!” And you do a little jig, because how cool is that? Only... where is that money? It’s certainly not sitting in a fat pile in your bank account, is it? So you look at your accountant, perplexed, and say, “Wait. I’ve made all that profit... but where is it?” “Oh, it’s gone,” she says airily. “You’ve spent it.” “What? How can it be profit then?” At which point your head explodes. Well, this is the book you need to read. It helped me understand exactly what''s going on. The author has been in exactly our position – and much, much worse. He’s gone from millions in the bank to his last few quid – then lost that. And he’s been as confused as the rest of us. So he wrote this book to come up with a system that works for real humans. Because (sorry accountants!) most of us business owners do not and will not ever think like accountants. We will not sit for hours poring over statements and spreadsheets and profit and loss calculations. We just won’t. So the author came up with the Profit First system. My accountant tells me it’s the accounting system under another name, but that’s the point. He uses normal-people words, ideas, and examples. He takes accounts and puts them in a format I can understand – and gives me a system I can not only understand but will actually use. When you’ve read the book, do the things the author tells you to do. Do the instant assessment of your business. It’ll hurt, but only briefly – then you can start to fix things. This is one of those things you won’t want to do because it’s scary. But once you face the music and know exactly what’s what, it’s like a huge weight has been lifted. This is a beautifully simple book that takes a complicated subject and makes it easy to understand for those of us who can''t get their heads around traditional accounts.
32 people found this helpful
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the contributor
1.0 out of 5 starsVerified Purchase
I read the first 5 chapters, then threw the book out
Reviewed in the United Kingdom on September 5, 2020
The problem is that the ''programme'' of Profit First involves opening a bunch of extra bank accounts (one for profit, one for tax, one for expenses etc etc) so that you are putting money aside and not over-spending what you don''t really have. And - that''s a huge ask and I''m...See more
The problem is that the ''programme'' of Profit First involves opening a bunch of extra bank accounts (one for profit, one for tax, one for expenses etc etc) so that you are putting money aside and not over-spending what you don''t really have. And - that''s a huge ask and I''m not going to do it. In a nutshell. The palaver involved in changing direct debits and standing orders, setting up new ones, dealing with 5 extra cheque books and bank cards for my 5 accounts... Phewie, there''s just no WAY I''m getting into all that! I get the basic premiss: Put the focus on profit. Know what your profit really is, after expenses, so you don''t over-spend and go from elaborate spending to scrimping and saving, backwards and forwards... But I think I prefer the simpler system, which is: Constantly try to save more money. Reduce expenses as low as they can go. It''s working for me anyhow. In short: If you''re not prepared to do some pretty radical stuff involving your finances and bank accounts, don''t bother getting the book.
13 people found this helpful
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Ntathu Allen
5.0 out of 5 starsVerified Purchase
Excellent. Mind expanding
Reviewed in the United Kingdom on May 22, 2018
Well. What can I say. Some books leave imprints on your heart and you are never the same. And, Profit First is one of those books. This year am committed to understanding and managing my finances and making a profit in my business. By staying open and listening to my heart...See more
Well. What can I say. Some books leave imprints on your heart and you are never the same. And, Profit First is one of those books. This year am committed to understanding and managing my finances and making a profit in my business. By staying open and listening to my heart and taking the first steps, reading Profit First and watching the YouTube videos...and opening my Profit First account...I feel confident in achieving my heart''s desire. Mike has written a gem of a book which shows you how easy it is to manage your finances. I am excited and will be ''re-reading and applying the techniques and mind set shifts as I go along. Highly recommend this book if you are looking for ways to reduce your debt and live a profitable and fun life, without stress or struggle. Thank you.
13 people found this helpful
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I J Sanders
5.0 out of 5 starsVerified Purchase
The almost stress free way for small businesses to run their finances successfully!
Reviewed in the United Kingdom on July 24, 2018
Wow, this is the book I''ve been searching for since I started my business nearly 10 years ago! Finance has always been one of the biggest challenges of growing a business and I''ve always found it way too complex. The other big problem is that all you focus on is making...See more
Wow, this is the book I''ve been searching for since I started my business nearly 10 years ago! Finance has always been one of the biggest challenges of growing a business and I''ve always found it way too complex. The other big problem is that all you focus on is making profit, and you only find out if you''ve made a profit retrospectively. What I love about the Profit First system is that you focus on ensuring you make a profit from day one. We''ve also believed in the idea that you need to re-invest to build the business and while that has been a success, I can now see that we could have continued to grow the business, provide a great service to our clients and achieve what we wanted, while still making a healthy profit along the way. I honestly wish I''d read this 10 years ago... It''s a top 10 must read business book for me and I''ve read a lot. Focus on making a consistent profit and the rest becomes a great deal easier...
11 people found this helpful
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Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale

Profit First: Transform Your Business from new arrival a Cash-Eating lowest Monster to a Money-Making Machine outlet online sale