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By the time he was thirty-five years old, Mike Michalowicz had founded and sold two multi-million dollar companies. Then, after becoming an angel investor, he lost his entire fortune and started all over again. Driven to find better ways to grow healthier, stronger companies – he created innovative strategies to help businesses thrive.
The author of various impactful business books, including Profit First, The Toilet Paper Entrepreneur, The Pumpkin Plan, and Surge, Mike carries with him a powerful message that can transform the way we run our practices. In this episode, he explains why traditional accounting hurts businesses and shares insight into his profit-first system that will help turn reactionary choices into sound business decisions.
Key Quotes:
- The fundamental formula for accounting—sales minus expense equals profit—is crushing businesses because profit is not the first consideration.
- If you really care about your clients, you’ll really focus on profitability, so that you’re not selling unnecessary things, and you’re not just selling to survive. You’re selling resources that people truly need and caring for them.
- In our business, if we simply wait to see where and when there’s money, we’re in this binge mentality.
- If we intentionally restrict our money supply available to run our businesses, then we are forced to run frugal operations, as we should – helping our businesses grow faster and stronger than ever.
- As money starts accumulating in our profit reserve, it becomes tempting to borrow that money. You’ve got to remove the temptation of borrowing from it by getting it out of sight and out of mind.
- Instead of using a system that makes us change who we are, use a system that works with who we are naturally.
- If you’re really serious about being profitable, then set up a new checking account. It’s going to be your profit account.
Featured on the Show:
- Mike Michalowicz
- Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
- The Toilet Paper Entrepreneur: The tell-it-like-it-is guide to cleaning up in business, even if you are at the end of your roll.
- The Pumpkin Plan: A Simple Strategy to Grow a Remarkable Business in Any Field
- Surge: Time the Marketplace, Ride the Wave of Consumer Demand, and Become Your Industry’s Big Kahuna
