Learn the key ideas of the book by Mike Michalowicz

Profit First

How to make your business profitable

More than half of new businesses fail within the first five years. Of those that survive, only a handful are truly profitable; the others are transformed into money-eating machines, which consume the time and energy of those who founded them, without being able to restore the much hoped-for economic independence. In Profit First, Mike Michalowicz shows us how we can start making the profit we deserve, right away, and at last, turn our business around.

Profit First
Read in 11 min.
Listen in 13 min.

Many useful tips to:

  • Help those who have their own business but struggle to see the dividends.
  • Learn how to manage your income so that you never run out of money.
  • Acquire the principles that will allow us to maintain a profitable business.

The author of the book:

As well as being a bestselling author in the business world, Mike Michalowicz shares his business acumen through an established activity as a columnist. He writes for publications such as the Wall Street Journal and Entrepreneur Magazine, and has participated in television shows for NBC, MSNBC, Fox News and ABC News Now. In addition to his entrepreneurship, his activity as a trainer is dedicated to behavioural marketing techniques.

IDEA CHIAVE 1/11

Why many businesses don't make a profit

For many people, setting up a small business or starting to work for themselves is a way to achieve financial independence. Unfortunately, however, many businesses struggle to generate a real profit, finding themselves trapped in a continuous succession of deadlines and constant crises, one episode after another.

Many of the ideas conferred to us regarding the management of a business teach us that our main aim must be growth, but we rarely stop to ask ourselves if this is the right approach. Trying to grow a business that does not generate profit and that consumes all our resources only risks generating a money-eating monster.

By applying traditional accounting systems, that we are all used to, we learn that profit is whatever is left over after business. We even have a formula: profit = revenue - expense.

Leaving profit as the last step, however, we fall into a trap: that of survival. This happens because there are always new expenses, new investments, new and unexpected events.

The good news is that it doesn't have to be that way. If we decide to change the formula, we can immediately start taking our share of the revenues, our profit. All that remains will go to cover the expenses...and we can start right away.

  

The key ideas of "Profit First"

01.
Why many businesses don't make a profit
02.
What are the fundamental principles of the Profit First method?
03.
Why use "smaller plates"
04.
How to make sure you always make a profit
05.
How to remove temptation
06.
Why it is important to set a pace to follow
07.
How to evaluate our starting position
08.
How the Profit First method can help us with debts
09.
When to take your profits and celebrate
10.
Quotes
11.
Take-home message
 
 
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