Profit First- An Interview With Mike Michalowicz
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Today we discuss a unique method by which you can guarantee your business will always have a profit (even from day 1). You\\u2019ll never miss having a profit because you take your profit first.
My guest is Mike Michalowicz. Mike is the successful entrepreneur behind three multimillion dollar companies. He is the author of The Pumpkin Plan, Surge, and The Toilet Paper Entrepreneur, which BusinessWeek deemed \\u201cthe entrepreneur\\u2019s cult classic.\\u201d He is a former small business columnist for The Wall Street Journal and a former MSNBC business makeover expert. An advocate for entrepreneurs, Mike says his purpose in life is to eradicate entrepreneurial poverty.
Click here to download or listen to this episode now.
Tip of the Week
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Spiritual Foundations
An indicator of someone\\u2019s character and integrity is how they handle their possessions. Paul stated in Philippians 4, \\u201cI know how to get along with humble means, and I also know how to live in prosperity. In any and all circumstances, I have learned the secret of being filled and going hungry, both of abundance and suffering need. I can do all things through Him who strengthens me.\\u201d
Paul was actually talking about wealth in this circumstance. He was saying, \\u201cI\'ve had a lot and I\\u2019ve had very little, and I\\u2019ve learned to be content in both circumstances. I can handle either situation through Christ who strengthens me.\\u201d Powerful advice! (3:00)
Feature Presentation \\u201cProfit First- An Interview With Mike Michalowicz\\u201d
Here are some snippets from our conversation:
- The book Profit First revolutionized my thinking about my business. \\u2013 How to change your CPA\\u2019s thinking about business and pocket profits like never before. (4:00)
- Profit First is a new approach to cash management. \\u2013 Discover how an old approach to cash management brought to business for the first time will increase your profits. (5:00)
- Sales \\u2013 expenses = profit. \\u2013 Why this flawed definition has negatively impacted so many businesses. (5:25)
- Accounting says profits come last. \\u2013 How to change one simple formula and start making a profit immediately.
- 83% of small businesses are not profitable. \\u2013 Uncovering why entrepreneurs get so many things right but continue to make no profit. (5:40)
- Is there a flaw in the formula? \\u2013 How the Profit First principle will change your business (and your life). (6:01)
- Sales \\u2013 profit = expenses. \\u2013 What to do every time you make a sale (truth is, practically no one does this). (6:45)
- Sell, hide, pay. \\u2013 Why this sequence works every time and guarantees you profits. (No, I\\u2019m not advocating illegal activity.) (7:09)
- The 20/80 rule you\\u2019ve never heard. \\u2013 How logic, emotions, and habits impact your business profits. (7:35)
- Business says, \\u201cThe more I grow, the more I spend.\\u201d \\u2013 How to break this popular no profit system. (8:00)
- Profit First leaves you less money for your expenses. \\u2013 Why this forces you to make harder choices that lead to the appropriate decisions. (8:52)
- Reverse engineer profits. \\u2013 Discovering the secret for overcoming negative inertia and creating the habit of making a profit. (9:02)
- Tony Robbins, \\u201cThe definition of an entrepreneur is someone who knows how to make enough money to cover their mistakes.\\u201d\\xa0 (9:10)
- The mindset of just making more money. \\u2013 What entrepreneurs do when they\\u2019re not profitable and why it\\u2019s such a bad idea. (9:29)
- Too much month at the end of the money. \\u2013 Why continuing with a flawed money management system is insane.\\xa0 (9:37)
- How Profit First forces you to define the path to profitability. \\u2013 Why revealing outcome-based thinking is powerful. (10:30)
- If you can\\u2019t pay your bills you never could afford your bills. \\u2013 How we fall into the trap of stealing (and think it\\u2019s OK). (10:54)
- How to run your business in a disciplined and appropriate fashion. \\u2013 Why Profit First is required reading for every entrepreneur. (11:06)
- Is Parkinson\\u2019s Law impacting your profits? \\u2013 What naturally happens when your resources increase, and how to break this unprofitable habit.\\xa0 (11:36)
Resources Mentioned In This Episode
At Mike\\u2019s site you\\u2019ll have access to free chapter downloads, his Wall Street Journal articles, blogs, and podcasts.
How To Help
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