If you feel that you are an entrepreneur or think that maybe you are an entrepreneur, you should know about Mike Michalowicz and his books. If you are operating through standard accounting, GAAP accounting, or what Mike calls Frankenstein accounting, you are going to want to listen to this episode and how you can increase profitability.
In this episode we are talking with Mike Michalowicz about his most popular book Profit First and how and why you should implement it in your business. I have implemented Profit First into my business and several listeners have reached out and said that Profit First is the secret to the growth of their property management companies.
[03:57] The pain that created Profit First
[06:41] When Mike had to tell his family how he lost all his money being an angel investor
[10:57] How Jason found out about Profit First
[13:03] Why every business owner should apply the Profit First accounting method
[14:15] How Mike is driven by the Profit First system to eradicate entrepreneurial poverty
[15:48] 80% of entrepreneurs are struggling check to check
[18:52] Pay yourself first isn't a new concept, but Mike applies it to business
[21:37] The principles of Profit First and why GAAP is crap
[23:10] Get started by setting up multiple bank accounts and paying yourself first
[25:39] Parkinson's Law - we get the same results with less money
[34:00] How business owners need to take care of themselves financially
[43:53] Mike's other books The Toilet Paper Entrepreneur, The Pumpkin Plan, and Surge
The rich guy next door with the nice house & nice car is just one bad month away from losing it all.
Entrepreneurial poverty is the dirty secret in most businesses (80%) and needs to be eradicated.
No matter how much you make, without putting Profit First, your expenses will eat everything.
The secret to innovation is limitation.