Too many of us start our businesses with the goal of achieving financial freedom, only to discover that many months (even years!) of hard work, long hours and an out-of-balance life later, the business “owns” us rather than the other way around. In addition to the mental and physical toll business ownership takes on us, it very often stresses us financially too.
Declaring independence on your business doesn’t require going to war with it though. In fact, best-selling author Mike Michalowicz offers a simple, practical solution for taking back control of your business. In his latest book Profit First, released today, Michalowicz asserts that any business can be transformed from a cash-eating monster to a money-making machine. Moreover, Michalowicz says you can start the process with your very next deposit.
Far from a “get rich quick” scheme, the system Michalowicz outlines in Profit First turns the commonly accepted accounting formula Sales – Expenses = Profits on its head. Rather than pay expenses first and see if any profit remains, he advises business owners to subtract profits first and set them aside; what’s left is the money available for expenses.
Subtracting profit first forces business owners to become ruthless about expenses, Michalowicz says. Most business owners, even those who think they are already operating lean and mean, can find more ways to be more frugal. In Profit First, Michalowicz leads business owners step-by-step through the basics of putting profits first, destroying debt, and more advanced techniques for actually living profit first and achieving the financial freedom you went into business to gain in the first place.
Anything but a “talking head” business expert, Michalowicz learned the hard way the necessity of putting profit first. He built and sold two multi-million dollar companies, won the Young Entrepreneur of the Year Award and was heralded for his business acumen. Behind the scenes, though, he was taking out loan after loan and racking up credit card debt to cover payroll. Eventually, he lost his fortunes.
When he regrouped to start yet another venture, Michalowicz thought long and hard about what he needed to do for his new company to prosper. That’s when he came up with the Profit First system. After riding the system to success and experiencing how it literally pays off, Michalowicz has become a Profit First consultant, working with business owners to share how to bring profitability to themselves, their families and their communities.
As Michalowicz challenges in the introduction to Profit First: “Today is the day we draw a line in the sand and never accept it again. Today is the day we make your business (and your life, in the process) financially strong. Permanently.”
Declare your independence. Check out the first few chapters of Profit First, download the audio version, and listen to my radio interview with Mike to learn how you can have not only a financially healthy business, but a seriously profitable one as well.