Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

Profit First is hands down one of the most impactful books for entrepreneurs and small business owners. Mike Michalowicz breaks down financial management into a simple, actionable system that ensures you pay yourself first—rather than waiting to see what's left over. The biggest takeaway? Stop running your business check-to-check and start prioritizing profit. The step-by-step approach makes budgeting easy to follow, and the psychology behind the method is eye-opening. Implementing Profit First has helped me gain control over cash flow, reduce financial stress, and actually see my business grow sustainably. If you're struggling to make sense of your business finances or feel like you're working too hard for too little return, this book is a must-read. Practical, engaging, and truly transformative!

Mike Michalowicz's "Profit First" introduces a groundbreaking concept that flips traditional financial wisdom on its head: prioritize profit first. In a world where businesses typically emphasize revenue and expansion, this book campaigns a refreshingly unconventional approach—a perspective most entrepreneurs desperately need. WHY NOT PAY YOURSELF FIRST????? Michalowicz's engaging storytelling, enriched with real-life examples, simplifies finance and makes it accessible to all readers. The book's central focus is change in your approach to finances and how you think about your money. The system reshapes the reader's financial mindset, promoting disciplined money management. Prior to using this in business, I applied the system to my Personal/Professional Career and financials. BOOM!!! I had to personally reach out to Mike, this is powerful stuff!! The core takeaway is the "banking" system, without giving away too much. This approach compels business owners to allocate funds thoughtfully, breaking free from the paycheck-to-paycheck cycle, even within their businesses. "Profit First" isn't just a book; it's a financial EXPLOSION kit. It challenges the hear say and presents an unconventional approach to financial growth. The message is clear: prioritize profit, and your business will reward you with resilience and prosperity. "Profit First" ensures sustainable expansion. It shifts the focus from revenue to profit—a transformative concept in the world of business. The Profit First formula is straightforward yet profoundly impactful—a testament to the idea that the most effective solutions are often the simplest ones. In summary, "Profit First" is a revolutionary habit building process of financial management, offering a roadmap to lasting profitability and resilience. BUY THE BOOK & TAKE ACTION, OTHERWISE YOU HAVEN'T DONE ANYTHING TO BETTER YOUR PUMP!!

After reading, Mike Michalowicz’s, “Profit First”, I am pumped up about starting my own business, but that’s only the beginning. This is not a “feel-good” type of book this is a “feel-great-because-you-REALLY-can-be-profitable” type of book. It’s the springboard to moving confidently in the right direction. Mike provides a REAL framework for success and outlines SPECIFIC numbers for us to implement at every stage. He doesn’t leave you hanging. Once you read this book, you will know how to manage your businesses finances step-by-step, literally step-by-step. My background is corporate recruitment, I’ve worked with several senior level executives, I’ve worked for one of the top rated business schools in both their MBA program and as a career coach to their undergrad students, these are my strengths and I’m grateful for the success I’ve had in these roles; however, despite the extreme privilege God has blessed me with in regards to my corporate business experience, I did not have a clue about managing my own, personal business world...until now. If you know anything about Mike, you know he’s engaging. He’s also authentic, ridiculously witty and funny but he also genuinely cares about your success. You will read through the pages of this book and feel like he’s personally coaching you and telling you about his mistakes and how he learned from them and how to help you avoid those pitfalls or what to do if you’re currently in a mess. I’ve been “following” Mike and reading his e-mails for well over five years. I wound up becoming a stay-at-home mom 6 years ago, knowing full well that someday, I would be able to pursue my dream of becoming an Independent Career Coach. When I read his introductory e-mail announcing the release of “Profit First”, I knew it was time to make that move. Each one of his e-mails I had read prior to that one gave me a renewed boost of hope and prepared me for what I’m about to “ad-venture” into. That’s how I visualize entrepreneurship, as an adventure, not just a venture and this book is the roadmap that will help me in my journey and not allow me to get lost on the way but reach my destination safe and sound and PROFITABLE! It’s hard to articulate just how well informed and confident you will be after reading “Profit First” but for a Latina who comes from very humble beginnings, with no one to model financial stability or wisdom and a significant fear of failure, this book will play a key role in changing the legacy for me and for the future of my family. Thank you, Mike, for using the gifts and talents (and tough experiences along the way) that God has blessed you with and sharing them for the good of others.

Building a business with this book is a really great perspective shift. Start with profits in mind first, not as an end result which may or most likely not happen. You can build a profitable business and, as an owner, ensure you are prioritized with owner's compensation and profit payouts! Really enjoying reading and applying it through multiple Audible listens.

Math isn't my strong suit, but I loved reading about the math in this book. I can't wait to start working on putting this plan into action. Read this book. Even if you don't have a business yet (or ever). Read it. Money is going to make so much more sense after. I plan to read this book multiple times. I have a feeling there's going to be stuff that I missed the first time through.

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.

When a friend told me about Profit First, it sounded like a solution for those who had trouble using and understanding GAAP (Generally accepted accounting principles). I had just completed a special bookkeeping project for my friend's business and I had seen the challenges that he faced. The one thing I remember from our conversation was that he had worked over thirty years in his industry and had been successful in selling many units over the years. His question was, "Where's the money?" He is financially successful but thought he should have much more to show for his successful sales career. I decided to buy the book and see for myself what I couldn't wrap my head around from my client's description. I had limited ability to think outside the normal accounting/bookkeeping mode since I've been doing bookkeeping for others and myself for many years and support a number of clients who use proprietary software to maintain their books. Bottom line: I'm glad I read the book and followed the instructions for setting up the specific bank accounts Michalowicz suggests; after I took the quick assessment of one of our businesses, I was able to see where our allocation assumptions had left us--with booked profits but very little cash. Mr. Michalowicz writes from the standpoint of having started a number of businesses and facing the stark reality that if one's expenses aren't allocated correctly, the business is often just breaking even or less. Putting aside allocated profit first requires the business owner to then take a sharp pencil to his/her expenses and allocate them in percentages that are in line with the profit allocation he/she has set. I've only just begun to use this system and can see results from it already. It makes sense since I take the profit off the top of each sale and effectively get it out of site so I'm not tempted to spend it when the squeeze is on. It's an entirely different way of thinking for me in our businesses; instead of Income-expenses=Profit; Income-Profit=Expenses. Then it's up to the business owner(s) to work on suggested expense allocations to get them in line with the profit allocation chosen. In the (Almost) Instant Assessment, the author offers suggested expense allocations based on the size of the enterprise. This book has enough accounting and economics argot to satisfy the accounting purist, but will also make sense to guy or gal who finds all that "accounting stuff" boring and even irritating---" I'm out there selling every day; you (bookkeeper) just make it work!" Mike Michalowicz writes in an easy, declarative style, using humor, often self-deprecating, and anecdotes from his work and family life (the piggy bank story is both poignant and instructive). He shares his own stories of learning through mistakes, does not make grandiose claims, and fairly early on in the book asks the reader to send him a personal email stating, "I've drawn the line in the sand," thereby committing the reader's business to profitability. I did that, by the way, and got a response from Mike. There was something about the challenge that took me back to the movie Network when news anchor Howard Beale tells his listeners to open their windows and shout, " I'm mad as hell and I'm not going to take it anymore.” The commonality is that both actions were about lines drawn in the sand. This book is an easy and captivating read. I felt as if I knew the writer because of his candor and style, and recommend the book to anyone with a business, especially if you've ever seen a disconnect between what your accountant tells you about the profitability of your business and the money in the bank at the end of a "profitable" year.

The one missing puzzle that I was looking for. Great insights, free writing style and motivation- that’s what hooked me. It is my table book now. Thanks Mike