Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Profit First (Review and Analysis of Michalowicz's Book)
    Profit First (Review and Analysis of Michalowicz's Book)
    Profit First (Review and Analysis of Michalowicz's Book)
    Ebook38 pages26 minutes

    Profit First (Review and Analysis of Michalowicz's Book)

    By BusinessNews Publishing

    4.5/5

    ()

    Read preview

    About this ebook

    The must-read summary of Michael Michalowicz's book: "Profit First: A Simple System to Transform Any Business from a Cash Eating Monster to a Money-Making Machine".

    This complete summary of the ideas from Michael Michalowicz's book "Profit First" introduces the Profit First Approach. According to Michalowicz, this approach means prioritising profit, instead of leaving it as an afterthought. By following this approach, you can secure your profits and run your business on the remaining cash.

    There are four steps to install the Profit First Approach:
    1. Draw a line in the sand
    2. Set up your Profit First system
    3. Use Profit First to destroy debt and optimise your business
    4. Integrate some advanced techniques into your Profit First system

    Added-value of this summary:
    • Save time
    • Prioritise your company’s profits
    • Make your company permanently profitable

    To learn more, read “Profit First” and get your business profit-ready!
    LanguageEnglish
    PublisherBusiness Book Summaries
    Release dateJul 1, 2015
    ISBN9782511035900
    Profit First (Review and Analysis of Michalowicz's Book)

    Read more from Business News Publishing

    Related to Profit First (Review and Analysis of Michalowicz's Book)

    Related ebooks

    Small Business & Entrepreneurs For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      Master The Four-hour Work Day

      Jan 22, 2019

      Tim Ferriss wrote about the four-hour work week, which involves outsourcing your work. That’s not what we’re talking about. The four-hour work day involves super-concentrated periods of work, split into four hour-long blocks, to help you nail a workl

      1 min read

    • Article

      How to Make a Million (or More!)

      Apr 4, 2019

      Christina Stembel didn't just bend the traditional business model for flower companies; she snipped it in half. Stembel grew up on a farm in Bremen, Ind. (population 4,500), so it's tempting to say that she founded Farmgirl Flowers to get back to her

      15 min read

    • Article

      The Best Marketers Are Farmers, Not Hunters: Marketing In A Globalised World And How It’s Changing

      Sep 23, 2019

      For many years, marketers identified themselves as advertisers, responsible for promoting the company – broadcasting a message and convincing people to buy their brand. While advertising is still an important part of marketing, the playing field has

      8 min read

    • Article

      Bargain Buys

      Aug 25, 2022

      Bargain Buys
      9 min read

    • Article

      Small Business Finance

      Mar 31, 2020

      Small Business Finance
      3 min read

    • Article

      Decision Time: More Profit Or More Sales?

      Apr 22, 2019

      IN THE NEXT look at our “8 levers of sales growth” series we tackle the decision between winning more valuable clients (lever 2) or winning a higher volume of clients (lever 3). If your business is in the fortunate position of being well established

      2 min read

    • Article

      Feeling Financially Disorganized? Take Back Control, Starting with Your Cash Flow

      Aug 5, 2019

      When I begin to work with financial planning clients, one of the first things I do is take a look at their cash flow. Cash flow is made up of money coming into your accounts (in other words, your income) each month and money going out (which is made

      5 min read

    • Article

      Three Rules For A Mighty Emergency Account

      May 15, 2021

      HOW many of us found out for the first time during the Covid hot mess that we were, in fact, living from pay cheque to pay cheque? One of my favourite financial principles that can really save one a headache if anything happens is the Mighty emergenc

      3 min read

    • Article

      Growing Sales Through Slipstreams

      Jul 22, 2019

      IN THE PAST few months we’ve looked at the ‘8 levers of sales growth’ – the different tactical moves you can pull to change the performance of your business. In some we saw a clear ‘either/or’ scenario; however the following lever stands on its own.

      2 min read

    • Article

      It’s Not Always About How Much You Make

      Mar 20, 2021

      EVERYONE has their own money rule that they swear by. My one: “It’s not about how much you make; it’s about how much you keep and where you keep it.” Back in my corporate days, I was highly paid. It was probably a bribe to keep me in the job, as I ha

      3 min read

    • Article

      What Successful Financial Management looks Like

      Oct 19, 2022

      If you're a smart business owner you will have your Accountant on speed dial, says GoFi8ure’s Lisa Martin. “He or she is really like your financial coach,” she explains. “So, if you want to bounce ideas around, then you should be able to talk to your

      4 min read

    Related categories

    Reviews for Profit First (Review and Analysis of Michalowicz's Book)

    4.5/5

    10 ratings1 review

    What did you think?

    Tap to rate

    Review must be at least 10 words

    • 4/5
      Much quicker read than you think it will be and it covered everything as a quick review of the audio that I had already enjoyed.

    Book preview

    Profit First (Review and Analysis of Michalowicz's Book) - BusinessNews Publishing

    Book Presentation: Profit First by Michael Michalowicz

    Summary of Profit First (Michael Michalowicz)

    Book Abstract

    The GAAP (Generally Accepted Accounting Principles) formula for determining a business's profit since time immemorial has always been:

    Sales - Expenses = Profits

    While that formula is logically accurate, it doesn't really take into account human nature. Specifically, most small business owners do what can be termed bank balance accounting – they look at their bank balance and make decisions based on the balance they see. That relegates profit to an afterthought – something which will be left over at the end of the year with a bit of luck.

    The Profit First Accounting (PFA) approach is to flip the standard GAAP formula this way:

    Sales - Profit = Expenses

    You take a predetermined percentage of profit from every sale first and then use only the remainder to pay for your expenses. Or put another way, with PFA, you secure your profit first and then run your business on the remaining cash.

    PFA Take your profit first and then scale your expenses to match that goal

    "It comes down to this – do you want to treat your profitability like leftovers, knowing you may only find scraps or an empty plate? Or do you want to get your full, healthy share right up front? I don't know about you, but I want to get my due portion first. I have taught the Profit First system to small companies and big companies, to private companies and even public companies. It works for all of them. And it will work for you. My commitment to you is that, if

    Enjoying the preview?
    Page 1 of 1