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Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine Hardcover – 15 March 2017

4.7 4.7 out of 5 stars 7,791 ratings

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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.

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 achievinglong-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.
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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

Book 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.

Product details

  • ASIN ‏ : ‎ 073521414X
  • Publisher ‏ : ‎ Portfolio; 1st edition (15 March 2017)
  • Language ‏ : ‎ English
  • Hardcover ‏ : ‎ 224 pages
  • ISBN-10 ‏ : ‎ 9780735214149
  • ISBN-13 ‏ : ‎ 978-0735214149
  • Dimensions ‏ : ‎ 15.49 x 2.06 x 23.37 cm
  • Customer Reviews:
    4.7 4.7 out of 5 stars 7,791 ratings

About the author

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Mike Michalowicz
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By his 35th birthday MIKE MICHALOWICZ (pronounced mi-‘kal-o-wits) had founded and sold two multi-million dollar companies.

Confident that he had the formula to success, he became a small business angel investor… and proceeded to lose his entire fortune. Then he started all over again, driven to find better ways to grow healthy, strong companies. Mike has devoted his life to the research and delivery of innovative, impactful entrepreneurial strategies to you.

Mike is the creator of Profit First, which is used by hundreds of thousands of companies across the globe to drive profit. He is the creator of Clockwork, a powerful method to make any business run on automatic. He is the author of Fix This Next, an instant Wall Street Journal Bestseller, The Pumpkin Plan, Surge and The Toilet Paper Entrepreneur. His newest book, Get Different, teaches entrepreneurs how to creating marketing that can't be ignored.

Today, Mike leads two new multi-million-dollar ventures, as he tests his latest business research for his books. He is a former small business columnist for The Wall Street Journal and business makeover specialist on MSNBC. Mike is a popular main stage keynote speaker on innovative entrepreneurial topics; and is the author of Get Different, Fix This Next, Clockwork, Profit First, Surge, The Pumpkin Plan and The Toilet Paper Entrepreneur.

Fabled author, Simon Sinek deemed Mike Michalowicz “…the top contender for the patron saint of entrepreneurs.”

Mike is also a guest lecturer for collegiate entrepreneurial programs such as Babson, Boston College, Columbia, Copenhagen Business School, Emerson, Harvard, Penn State, Pepperdine and Princeton. His books are in the core curriculum for entrepreneur students at Pepperdine, Carnegie Mellon, Stanford University, and universities across the country. His books have been translated into over 27 languages.

Customer reviews

4.7 out of 5 stars
4.7 out of 5
7,791 global ratings

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"That's it.  Just do it."
5 Stars
"That's it. Just do it."
When you read Mike's final words, I trust you will feel exactly as I did - empowered, excited, educated and economically efficient. I bought the e-reader and audio to totally absorb every word, left no stone unturned and am seeing immediate benefits. Trusting the process, I know I have nothing to lose as this book has provided simple systems that capture the good parts of my habits (delighted I have some) and has helped me to identify and guard against the 'bad parts' to bring about positive and permanent change. Possibly psychological but certainly an immediate clarity that I have not experienced in my many years of running my first born business (which is now aka my "co-joined twin"). Thank you Mike, I no longer want to experience entrepreneurial poverty in any aspect of my life. 🙏
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Top reviews from Australia

Reviewed in Australia on 22 April 2024
Verified Purchase
Quick postage, easy purchasing process.
Reviewed in Australia on 6 September 2019
Verified Purchase
When you read Mike's final words, I trust you will feel exactly as I did - empowered, excited, educated and economically efficient. I bought the e-reader and audio to totally absorb every word, left no stone unturned and am seeing immediate benefits. Trusting the process, I know I have nothing to lose as this book has provided simple systems that capture the good parts of my habits (delighted I have some) and has helped me to identify and guard against the 'bad parts' to bring about positive and permanent change. Possibly psychological but certainly an immediate clarity that I have not experienced in my many years of running my first born business (which is now aka my "co-joined twin"). Thank you Mike, I no longer want to experience entrepreneurial poverty in any aspect of my life. 🙏
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5.0 out of 5 stars "That's it. Just do it."
Reviewed in Australia on 6 September 2019
When you read Mike's final words, I trust you will feel exactly as I did - empowered, excited, educated and economically efficient. I bought the e-reader and audio to totally absorb every word, left no stone unturned and am seeing immediate benefits. Trusting the process, I know I have nothing to lose as this book has provided simple systems that capture the good parts of my habits (delighted I have some) and has helped me to identify and guard against the 'bad parts' to bring about positive and permanent change. Possibly psychological but certainly an immediate clarity that I have not experienced in my many years of running my first born business (which is now aka my "co-joined twin"). Thank you Mike, I no longer want to experience entrepreneurial poverty in any aspect of my life. 🙏
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One person found this helpful
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Reviewed in Australia on 19 January 2024
Verified Purchase
Mum bought this book and she reckons it’s pretty good.
It’s a cash flow system for people who love business but need some help setting up a cash flow system to help them maximize the profit from the business they love running without causing them stress.
Worth a read for small and medium business owners.
Reviewed in Australia on 13 January 2024
Verified Purchase
Read this book and learnt a lot about paying yourself first in business rather than expenses first from profit. Impressive maths formulas that work!!
Reviewed in Australia on 15 December 2023
Verified Purchase
Really loved this book. Especially as a small business owner
Reviewed in Australia on 21 January 2022
Verified Purchase
Amazing book for small businesses caught in working a zillion hours and not having any savings..... and I was pleasantly surprised with a message from the author himself!! If your thinking about it, just do it, this book is a game changer for small business
One person found this helpful
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Reviewed in Australia on 14 November 2018
Verified Purchase
This book has changed the way I look at and manage my business finances and, as a consequence, my business is doing better than ever. I set up the five bank accounts recommended in the book and started applying the Profit First principles just a few chapters in. I instantly noticed a greater sense of control and discipline over my finances. It’s not as if I don’t have a bookkeeping system and accountant, but for some reason, visually managing my money has more powerful effects and setting aside profit first generates a psychological sense of success and reward for effort. If you’re in business for yourself, read this book!
2 people found this helpful
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Reviewed in Australia on 8 March 2019
Verified Purchase
It doesn't matter how experienced you think you are when it comes to managing your business finances. If you're still struggling to make ends meet or aren't paying yourself a salary or don't have a lot to show for all your efforts, you need to read Profit First. It brings together a whole lot of sensible practical things and wraps it up into a doable process for both making a profit and working out how to live within your means.
One person found this helpful
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JustABuyer
5.0 out of 5 stars A must read for entrepreneurs
Reviewed in Canada on 6 December 2023
Verified Purchase
This book arrived in mint condition (I had purchased it as used- very good so I was nervous at first about its condition). I was happy with that.
Now, I don’t think anything I say will do this book much justice, but I will simply say- get it. If you are a business owner of any size, you need this book. It’s easy to read, relatable, uplifting and honest. It will make you a better entrepreneur than you thought possible. Get it, you won’t regret this purchase.
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JustABuyer
5.0 out of 5 stars A must read for entrepreneurs
Reviewed in Canada on 6 December 2023
This book arrived in mint condition (I had purchased it as used- very good so I was nervous at first about its condition). I was happy with that.
Now, I don’t think anything I say will do this book much justice, but I will simply say- get it. If you are a business owner of any size, you need this book. It’s easy to read, relatable, uplifting and honest. It will make you a better entrepreneur than you thought possible. Get it, you won’t regret this purchase.
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Laércio Zulian Gallina
5.0 out of 5 stars Ótimo livro
Reviewed in Brazil on 4 August 2022
Verified Purchase
Ótima leitura, estimula a encarar os pequenos e médios negócios de outra forma.
One person found this helpful
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Sam
5.0 out of 5 stars A Simple System that WORKS!!! Definitely worth the read!
Reviewed in the United States on 18 April 2022
Verified Purchase
I love efficiency! And in general an envelope system is a great way to do that...but with actual physical envelopes, it gets a little cumbersome.

This year, I implemented Profit First in my business as I read this book. It was one of the first books I read.
I love the siplicity & actionable steps that Mike provides. Some people have complained that there's nothing ground-breaking here but I tend to disagree.

Most people I've worked with as a small business systems consultant need a little help organizing most parts of their business. That includes their money. Whether they're just starting out or have been in business nearly 10 years, some haven't quite figured out how to manage the money in a way that allows them to have some left over at the end. And at the same time, removes the hassle of physical money management (envelopes and cash). Each account makes your numbers visible at a glance!!!

This book gives you a system to do just that. Turning a money gobbler into an organized set of pre-assigned buckets for each of your business dollars.

For someone who loves both numbers and systems, the Profit First method has given me both. Got to say that having the ability to actually draw a profit in the first quarter this year and KNOWING what that amount should be has been powerful! The emotional ups and downs of running your own business can be challenging. And seeing that profit account grow gives you something to look forward to as you work through the good and the rough days of owning a business!

Mike provides guidelines for how to handle the lingering questions about managing the $$ that come up for a lot of business owners. I've shared this book with multiple business owners since reading and implementing it in my own business.

If you're in a spot where you're unsure about how to organize your business finances or haven't taken a profit distribution in years, or haven't ever even had a profit to speak of, this book is a great place to get started!!

Definitely worth reading! Really glad I implemented it!
I've even started using this as a client gift during my process and systems work with clients. And so far, everyone I've sent it to has given it rave reviews as well.
10 people found this helpful
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Adan Lopez Peña
5.0 out of 5 stars A must read for SMB owners
Reviewed in Mexico on 26 November 2021
Verified Purchase
If you are a business owner (or are planning to be one) and think that revenue is growth, and growth is profit, you should read this.
One person found this helpful
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Mateo Eguiguren
5.0 out of 5 stars Lo comenzamos a implementar este mes en la agencia
Reviewed in Spain on 26 April 2024
Verified Purchase
El libro habla acerca de un simple sistema para separar primero el Profit, después pagarte a ti como el empleado más importante dentro de toda la compañía. Luego separar para pagar impuestos porque ese dinero no te pertenece a ti, sino al Estado y finalmente pagar los costos operativos.

Este mes lo comenzaremos a aplicar en la agencia de marketing especializada en comercio electrónico y dentro de unos meses veremos el impacto
Customer image
Mateo Eguiguren
5.0 out of 5 stars Lo comenzamos a implementar este mes en la agencia
Reviewed in Spain on 26 April 2024
El libro habla acerca de un simple sistema para separar primero el Profit, después pagarte a ti como el empleado más importante dentro de toda la compañía. Luego separar para pagar impuestos porque ese dinero no te pertenece a ti, sino al Estado y finalmente pagar los costos operativos.

Este mes lo comenzaremos a aplicar en la agencia de marketing especializada en comercio electrónico y dentro de unos meses veremos el impacto
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