{"product_id":"profit-first-isbn-9780735214149","title":"Profit First","description":"\u003cb\u003eAuthor of cult classics \u003ci\u003eThe Pumpkin Plan \u003c\/i\u003eand \u003ci\u003eThe Toilet Paper Entrepreneur \u003c\/i\u003eoffers a simple, counterintuitive cash management solution that will help small businesses break out of the doom spiral and achieve instant profitability.\u003c\/b\u003e\u003cbr\u003e\u003cbr\u003eConventional accounting uses the logical (albeit, flawed) formula: Sales - Expenses = Profit. The problem is, businesses are run by humans, and humans aren't always logical. Serial entrepreneur Mike Michalowicz has developed a behavioral approach to accounting to flip the formula: Sales - Profit = Expenses. Just as the most effective weight loss strategy is to limit portions by using smaller plates, Michalowicz shows that by taking profit first and apportioning only what remains for expenses, entrepreneurs will transform their businesses from cash-eating monsters to profitable cash cows. Using Michalowicz's Profit First system, readers will learn that:\u003cbr\u003e\u003cbr\u003e· Following 4 simple principles can simplify accounting and make it easier to manage a profitable business by looking at bank account balances.\u003cbr\u003e· A small, profitable business can be worth much more than a large business surviving on its top line.\u003cbr\u003e· Businesses that attain early and sustained profitability have a better shot at achieving long-term growth.\u003cbr\u003e\u003cbr\u003eWith dozens of case studies, practical, step-by-step advice, and his signature sense of humor, Michalowicz has the game-changing roadmap for any entrepreneur to make money they always dreamed of.\u003cb\u003ePraise for \u003ci\u003eProfit First\u003cbr\u003e\u003c\/i\u003e\u003c\/b\u003e\u003cbr\u003e “Quit being a slave to your own business and start making some serious money. Follow Mike’s counter-intuitive advice and put profits first.” \u003cbr\u003e --VERNE HARNISH, author of \u003ci\u003eScaling Up\u003c\/i\u003e\u003cbr\u003e\u003cbr\u003e“\u003ci\u003eProfit First\u003c\/i\u003e is a brilliant smack-upside-the-head revelation for entrepreneurs. Most small businesses look pretty good on the outside, yet actually struggle to stay afloat. With fascinating stories and wit, Michalowicz shows how to remove your nose from the grindstone, climb out of the quicksand, and build a business that loves you back.” \u003cbr\u003e—SALLY HOGSHEAD, author of \u003ci\u003eFascinate\u003c\/i\u003e\u003cbr\u003e\u003cbr\u003e“\u003ci\u003eProfit First\u003c\/i\u003e may arguably be one of the greatest ‘hacks’ of all time. Apply the pay-yourself-first principle to your business and watch the profits roll in.”\u003cbr\u003e—CHRIS GUILLEBEAU, author of \u003ci\u003eBorn for This\u003c\/i\u003e and \u003ci\u003eThe $100 Startup\u003c\/i\u003e\u003cbr\u003e \u003cbr\u003e \"\u003ci\u003eProfit First\u003c\/i\u003e is a game-changer. I implemented the system into both of my businesses and increased profits by 21%. If you want to turn a profit and grow your business, you need this book.\" \u003cbr\u003e—MICHAEL PORT, author of \u003ci\u003eSteal the Show\u003c\/i\u003e\u003cbr\u003e  \u003cbr\u003e \"\u003ci\u003eProfit First\u003c\/i\u003e completely transformed how I handle business banking. I hadn't even finished the book before immediately putting a four-account distribution system in place for new income: operating expenses, owner expenses, taxes and profit. Mike's system moved me from break-even to profitable within a month. This book is a must-read for businesses large and small.\" \u003cbr\u003e —JENNY BLAKE, author of \u003ci\u003ePivot\u003c\/i\u003e\u003cbr\u003e  \u003cbr\u003e “Twenty-five percent of small businesses have two weeks or less of cash in the bank. Seventy-five percent of businesses have a month or less of cash in the bank. \u003ci\u003eProfit First\u003c\/i\u003e disciplines show you the roadmap to avoid becoming a statistic. This book has the potential to change the next 20 years of your small business life.”\u003cbr\u003e—DAWN FOTOPULOS, Associate Professor of Business, The King’s College NYC; author of \u003ci\u003eAccounting for the Numberphobic\u003c\/i\u003e\u003cbr\u003e  \u003cbr\u003e “\u003ci\u003eProfit First\u003c\/i\u003e is a revelation. I only wish I knew about this system when I started my first business.”\u003cbr\u003e—JOHN JANTSCH, author of \u003ci\u003eDuct Tape Marketing\u003c\/i\u003e and \u003ci\u003eSEO for Growth\u003cbr\u003e\u003cbr\u003e\u003c\/i\u003e“Entrepreneurs commonly confuse cash flow with profitability. \u003ci\u003eProfit First\u003c\/i\u003e makes the process so radically simple that you no longer have an excuse not to be profitable AND have cash flow!”\u003cbr\u003e—GREG CRABTREE, author of \u003ci\u003eSimple Numbers, Straight Talk, Big Profits\u003c\/i\u003e\u003cbr\u003e\u003cbr\u003e “Not only is Mike one of the most innovative small business authors of our time, his Profit First system—simple to apply and impactful in its results—can be the difference between constantly walking the financial tightrope or being predictably profitable. And a predictably profitable business is not only less stressful and more gratifying, it allows you to focus on what really matters… serving your customers!”\u003cbr\u003e—BOB BURG, coauthor of \u003ci\u003eThe Go-Giver\u003c\/i\u003e and \u003ci\u003eThe Go-Giver Leader\u003c\/i\u003e\u003cbr\u003e\u003cbr\u003e \"Why are so few businesses actually profitable for their owners? \u003ci\u003eProfit First\u003c\/i\u003e turns accepted wisdom on its head and shows the real reason business owners struggle with the bottom line. This book shows you how to take home more money almost immediately.\"\u003cbr\u003e—DORIE CLARK, author of \u003ci\u003eStand Out\u003c\/i\u003e\u003cbr\u003e\u003cbr\u003e“Finance is the top headache of an entrepreneur. \u003ci\u003eProfit First\u003c\/i\u003e is a must-read to avoid bankruptcy for great business ideas. Clever, easy to implement and absolutely effective (plus you will enjoy reading it).”\u003cbr\u003e—SOFIA MACIAS, author of \u003ci\u003ePequeño Cerdo Capitalista\u003c\/i\u003e\u003cbr\u003e\u003cbr\u003e“Entrepreneurs and small business advisors finally have a practical toolkit for increasing profitability! Everyone who touches the small business world should read and apply these game-changing principles.”\u003cbr\u003e—JOE WOODARD, CEO of Woodard Events and Woodard Consulting\u003cbr\u003e\u003cbr\u003e“I took the pledge and started implementing the Profit First system after reading Chapter One. By the time I was halfway through the book my business had already turned a profit.”\u003cbr\u003e—BARRY MOLTZ, author of\u003ci\u003e How to Get Unstuck\u003c\/i\u003e\u003cb\u003eMIKE MICHALOWICZ\u003c\/b\u003e launched and sold two multi-million dollar companies and is co-founder of Profit First Professionals, a membership organization of accountants, bookkeepers and business coaches who teach the Profit First method. He is a former columnist for The Wall Street Journal, is a popular speaker and has shared his insights on business and entrepreneurship at TEDx, creativeLIVE, INCmty and others. He is the author of\u003ci\u003e The Pumpkin Plan \u003c\/i\u003eand \u003ci\u003eThe Toilet Paper Entrepreneur\u003c\/i\u003e. His columns have appeared in \u003ci\u003eEntrepreneur Magazine\u003c\/i\u003e, \u003ci\u003eOpen Forum\u003c\/i\u003e, and \u003ci\u003eHarvard Business Review\u003c\/i\u003e.Chapter 1\u003cbr\u003e\u003cbr\u003e Your Business Is an Out-of-Control Cash-Eating Monster\u003cbr\u003e\u003cbr\u003e No matter how many years you've been at the grind, you are      probably well aware of the statistic that roughly 50 percent of      businesses fail within the first five years. What they don't tell      you is that those failed entrepreneurs are, in fact, the lucky      ones! The majority of the businesses that survive are racking up      debt, and their leaders are perpetually stressed. Most      entrepreneurs are living a financial nightmare, one that's      populated by Freddy Krueger or Frankenstein's monster in its raw,      unadulterated scariness. In fact, I am convinced that I am Dr.      Frankenstein.\u003cbr\u003e\u003cbr\u003e If you read Mary Shelley's classic, Frankenstein, you know exactly      what I'm talking about. The good doctor reanimated life. From      mismatched body parts, he stitched together a living being more      monster than man. Of course his creation wasn't a monster at      first. No, at first it was a miracle. Dr. Frankenstein brought to      life something that, without his extraordinary idea and exhaustive      hard work, could not exist.\u003cbr\u003e\u003cbr\u003e That's what I did. That's what you did. We brought something to      life that didn't exist before we dreamed it up; we created a      business out of thin air. Impressive! Miraculous! Beautiful! Or at      least it was until we realized our creation was actually a      monster.\u003cbr\u003e\u003cbr\u003e Stitching together a business with nothing but a great idea, your      unique talents, and whatever few resources you have at hand is      most certainly a miracle. And it feels like one, too, until the      day you realize your business has become a giant, scary,      soul-sucking, cash-eating monster. That's the day you discover      that you, too, are an esteemed member of the Frankenstein family.\u003cbr\u003e\u003cbr\u003e And just as happened in Shelley's book, mental and physical      torment ensues. You try to tame the monster, but you can't. The      monster wreaks destruction at every turn: empty bank accounts,      credit card debt, loans, and an ever-increasing list of \"must-pay\"      expenses. He eats up your time, too. You wake up before sunrise to      work, and you're still at it long after the sun goes down. You      work and work, yet the monster continues to loom. Your relentless      work doesn't free you; it further drains you. Trying to keep the      monster at bay before it destroys your entire world is exhausting.      You suffer sleepless nights, worries about collection      calls-sometimes from your own employees-and a near-constant panic      about how to cover next week's bills with a few dollars and the      lint in your pocket. Didn't you start a business so you could be      your own boss? Now it looks as though this monster is the boss of      you.\u003cbr\u003e\u003cbr\u003e If you think operating your business is closer to a horror story      than to a fairy tale, you're not alone. Since I wrote my first      book, The Toilet Paper Entrepreneur, I've met tens of thousands of      entrepreneurs; and let me tell you, most are struggling to tame      the beast that is their business. Many companies-even those that      appear to have it all together, even the big guys who seem to      dominate their industries-are one bad month away from total      collapse.\u003cbr\u003e\u003cbr\u003e My own wake-up call came in the form of my daughter's piggy bank.\u003cbr\u003e\u003cbr\u003e The Piggy Bank That Changed My Life\u003cbr\u003e\u003cbr\u003e I lost my way the day I received a check for $388,000. It was the      first of several checks I would receive for the sale of my second      company-a multimillion-dollar computer forensic investigations      business I had cofounded-to a Fortune 500 firm. I had now built      and sold two companies, and that check was all the proof I needed      that my friends and family were right about me: When it came to      growing businesses, I had the Midas touch.\u003cbr\u003e\u003cbr\u003e The day I received the check, I bought three cars: a Dodge Viper      (my college-fantasy dream car, and what I have subsequently found      many people identify as the \"that-guy-must-have-a-tiny-penis\"      car), something I'd promised I would get for myself \"one day\" when      I'd \"made it,\" a Land Rover for my wife, and a spare-a tricked-out      BMW.\u003cbr\u003e\u003cbr\u003e I had always believed in frugality, but now I was rich (with an      ego to match). I joined the private club: the one where, the more      money you give, the higher they place your name on the members'      wall. And I rented a house on a remote Hawaiian island so my wife,      my children, and I could spend the next three or so weeks      experiencing what our new lifestyle would be like. You know, \"how      the other half lives.\"\u003cbr\u003e\u003cbr\u003e I thought it was time to revel in the money I had created. What I      didn't know was that I was about to learn the difference between      making money (income) and taking money (profit). These are two      very, very different things.\u003cbr\u003e\u003cbr\u003e I launched my first business on ambition and air, sleeping in my      car or under conference room tables in order to avoid the cost of      hotels when visiting clients. So imagine the surprised look from      my wife, Krista, when I asked the sales guy at the dealership for      \"the most expensive Land Rover you have.\" Not the best Land Rover.      Not the safest Land Rover. The most expensive Land Rover. He      skipped his way to the manager, doing a giddy hand clap.\u003cbr\u003e\u003cbr\u003e Krista looked at me and said, \"Have you lost your mind? Can we      really afford this?\"\u003cbr\u003e\u003cbr\u003e Full of snark, I said, \"Can we afford it? We have more money than      God.\" I will never forget the stupidity coming out of my mouth      that day; such disgusting words, such a disgusting ego. Krista was      right. I had lost my mind-and, at least for the moment, my soul.\u003cbr\u003e\u003cbr\u003e That day was the beginning of the end. I was well on my way to      discovering that while I knew how to make millions, what I was      really, really proficient at was losing millions.\u003cbr\u003e\u003cbr\u003e It wasn't just the lifestyle I bought into that caused my      financial downfall-the trappings of success were a symptom of my      arrogance-I believed in my own mythology. I was King Midas      reinvented. I could do no wrong. And because I had the golden      touch and knew how to build successful businesses, I decided that      investing in a dozen brand-new start-ups was the best way to use      my windfall. After all, it was only a matter of time before my      entrepreneurial genius rubbed off on these promising companies.\u003cbr\u003e\u003cbr\u003e Did I care whether the founders of these companies knew what they      were doing? No-I had all the answers (read that with a massive      douche emphasis). I assumed that my golden touch would more than      compensate for their lack of business expertise. I hired a team to      manage the infrastructure of all these start-ups-accounting,      marketing, social media, Web design. I was sure I had the formula      for success: a promising start-up; the infrastructure; and my      incredible, superior magic touch (more douche emphasis).\u003cbr\u003e\u003cbr\u003e Then, I started writing checks-$5,000 to one person, $10,000 to      another, every month more checks, and still more. One time, I cut      a check for $50,000 to cover expenses for one of these companies.      I was focused on one thing and one thing only: growth. Mindlessly      throwing money at start-up companies wasn't even in alignment with      my values about money; I was a bootstrapper and proud of it.      Still, I was blind to my mistakes. I was all pump and dump. Grow      the businesses, then sell them. In retrospect, it was clear that I      would not be able to grow all of these companies to the point      where they would eventually become niche authorities, as I had      with my two previous companies. There was never enough revenue to      cover the ever-increasing mountain of bills.\u003cbr\u003e\u003cbr\u003e Because of my massive ego, I didn't allow the good people who      started these businesses to become true entrepreneurs. They were      just my pawns. I ignored the signs and kept funneling money into      my investments, sure that King Midas would be able to turn it all      around.\u003cbr\u003e\u003cbr\u003e Within twelve months, all of the companies I'd invested in, except      one, had gone belly up. When I started writing checks to pay bills      for companies that had already folded, I realized that I was not      an angel investor; I was the Angel of Death.\u003cbr\u003e\u003cbr\u003e It was a monumental disaster. Scratch that; I was a monumental      disaster. Within a couple of years, I lost nearly every penny of      my hard-earned fortune. Over half a million in savings gone. A      much larger (embarrassingly larger) amount of investment money      gone. Worse, I had no incoming revenue. By February fourteenth of      2008, I was down to my last $10,000.\u003cbr\u003e\u003cbr\u003e I will never forget that Valentine's Day. Not because it was so      full of love (even though it was), but because it was the day I      realized that the old adage \"When you hit rock bottom, the only      way to go is up\" is total bullshit. I discovered that day that      when you hit rock bottom, sometimes you get dragged along the      bottom, scraping your face on every one of those rocks until      you're battered, bruised, and bloodied.\u003cbr\u003e\u003cbr\u003e That morning I got a call at my office from Keith, my accountant      (not to be confused with Keith, the hot-air balloon guy). He said,      \"Good news, Mike. I got a jump start on your taxes this year and      just finished your return for 2007. You owe only twenty-eight      thousand dollars.\"\u003cbr\u003e\u003cbr\u003e I felt a sharp pain in my chest, like a knife stabbing me. I      remember thinking, \"Is this what it feels like to have a heart      attack?\"\u003cbr\u003e\u003cbr\u003e I would have to scramble to get the $18,000 I didn't have, and      then figure out how to cover my mortgage the next month plus all      of the small recurring and unexpected expenses that added up to a      whole lot of cash.\u003cbr\u003e\u003cbr\u003e As Keith wrapped up the call, he said that the bill for his      services would arrive on Monday.\u003cbr\u003e\u003cbr\u003e \"How much?\" I asked.\u003cbr\u003e\u003cbr\u003e \"Two thousand.\"\u003cbr\u003e\u003cbr\u003e I felt the knife twist. I had $10,000 to my name and bills      totaling three times that amount. After I ended the call, I put my      head on my desk and cried. I had gone so far astray from my      values, from who I was at my core, that I had destroyed      everything. Now, not only could I not pay my taxes; I had no idea      how I would provide for my family.\u003cbr\u003e\u003cbr\u003e At the Michalowicz household, Valentine's Day is a legit      holiday-on a level with Thanksgiving. We have a special dinner      together, exchange cards, and go around the table sharing stories      about what we love about each other. This is why Valentine's Day      is my favorite day of the year. Typically, I would come home with      flowers, or balloons, or both. That Valentine's Day I came home      with nothing.\u003cbr\u003e\u003cbr\u003e Though I tried to hide it, my family knew something was wrong. At      the dinner table, Krista asked me if I was OK. That was all it      took for the dam to break. The shame was too great. I went from      offering up forced smiles to sobbing in a matter of seconds. My      children stared at me, shocked and horrified. When I finally      stopped crying enough to speak, I said, \"I lost everything. Every      single penny.\"\u003cbr\u003e\u003cbr\u003e Total silence. I slumped over in my chair; the shame was too great      for me to face my family, not when all the money I had earned to      support them was gone. Not only had I failed to provide for my      family; my ego had stolen it all away. I felt pure, unadulterated      shame about what I had done.\u003cbr\u003e\u003cbr\u003e My daughter, Adayla, who was nine years old at the time, got up      from the table and ran to her bedroom. I couldn't really blame      her-I wanted to run away, too.\u003cbr\u003e\u003cbr\u003e The silence continued for two painfully awkward minutes until      Adayla walked back into the room carrying her piggy bank, the one      she had received as a gift when she was born. It had clearly been      cared for; even with all those years of use, there wasn't a single      chip or crack on the bank. She had secured the rubber stopper in      place with a combination of masking tape, duct tape, and rubber      bands.\u003cbr\u003e\u003cbr\u003e Adayla set her piggy bank down on the dining room table and slid      it toward me. Then she said the words that will stay with me until      the day I die:\u003cbr\u003e\u003cbr\u003e \"Daddy, we're going to make it.\"\u003cbr\u003e\u003cbr\u003e That Valentine's Day I woke up feeling like Debbie Horovitch felt      after her Instant Assessment: like a fool. But by the end of the      day I'd learned what net worth really is, thanks to my      nine-year-old daughter. That day I also learned that no amount of      talent, ingenuity, passion, or skill would change the fact that      cash is still king. I learned that a nine-year-old girl had      mastered the essence of financial security: save your money and      block access to it so it doesn't get stolen-by you. And I learned      that I could tell myself that my natural aptitude for business, my      relentless drive, and my solid work ethic could overcome any cash      crisis, but it would be a lie.\u003cbr\u003e\u003cbr\u003e Running the Instant Assessment can be like having a bucket of ice      water dropped on your head (if you did the \"ice bucket challenge\"      a couple of years ago, you know the spine-shuddering chill I am      talking about). Or it can seem like the most humbling moment of      your life, like when your daughter volunteers her life savings to      save you from the mess you made. But no matter how sharp the pain      is, it's better to face it than continue to live and operate your      business in denial.\u003cbr\u003e\u003cbr\u003e Money Problems\u003cbr\u003e\u003cbr\u003e You have probably put a lot of work into growing your business.      You are probably good or great at that part. That's awesome. And      that's surely half of the equation. But colossal growth without      financial health will still kill your company. With this book, you      have an opportunity to master money.\u003cbr\u003e\u003cbr\u003e Money is the foundation. Without enough money, we cannot take our      message, our products, or our services to the world. Without      enough money, we are slaves to the businesses we launched. I find      this hilarious because, in large part, we started our businesses      because we wanted to be free.\u003cbr\u003e\u003cbr\u003e Without enough money, we cannot fully realize our authentic      selves. Money amplifies who we are. There isn't a single ounce of      doubt in my mind that there is something big you are intended to      do on this planet. You wear the cape of what I believe is the      greatest of all superheroes: the Entrepreneur. But your superhero      powers can only yield as much power as your energy source      provides. Money. You need money, superhero.\u003cbr\u003e\u003cbr\u003e When I sat down to evaluate where I went wrong, I realized that      while my own spending and arrogance definitely played a part, I      also lacked knowledge. I had mastered how to grow businesses      quickly, yet I never really graduated to understanding      profitability. I had learned how to collect money, for sure, but I      had never learned how to keep it, how to control it or how to grow      it.","brand":"Portfolio","offers":[{"title":"Default Title","offer_id":46301180952805,"sku":"NP9780735214149","price":29.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780735214149.jpg?v=1767735156","url":"https:\/\/k12savings.com\/products\/profit-first-isbn-9780735214149","provider":"K12savings","version":"1.0","type":"link"}