Profit First By Mike Michalowicz (Paperback)

"Profit First" is a book by Mike Michalowicz that offers a unique cash management solution for small businesses to achieve instant profitability. The conventional accounting formula of Sales - Expenses = Profit is often flawed because businesses are run by humans, and human behavior isn't always logical. Michalowicz introduces a behavioral approach to accounting that flips the formula to Sales - Profit = Expenses.

The core concept of "Profit First" is that entrepreneurs should prioritize taking profit first and then allocate the remaining funds for expenses. By following this approach, businesses can transform from cash-eating monsters into profitable cash cows. The book outlines four simple principles to simplify accounting and manage a profitable business by closely monitoring bank account balances.

Michalowicz emphasizes that a small, profitable business can be more valuable than a large business that relies solely on top-line revenue. Early and sustained profitability is crucial for long-term growth and success.

Throughout the book, Michalowicz provides numerous case studies, practical step-by-step advice, and his trademark sense of humor to guide readers on implementing the Profit First system in their businesses. By adopting this approach, entrepreneurs can create a solid roadmap to achieve the financial success they've always dreamed of.