Conventional 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:
• Following 4 simple principles can simplify accounting and make it easier to manage a profitable business by looking at bank account balances.
• A small, profitable business can be worth much more than a large business surviving on its top line.
• Businesses that attain early and sustained profitability have a better shot at achieving long-term growth.
With 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. ♦
‘The Purpose Is Profit’
Tired of working for others and dealing with office politics, eager for control and more money, Ed ‘’Skip’’ McLaughlin certainly felt it. When he left his high-level corporate position to start not one but two new businesses, his colleagues’ reaction was disbelief. People told him he was crazy.
One of his businesses did fail, but the other thrived. Ed bootstrapped it into an Inc. 500 company and later sold it to a Fortune 100 company. Now, you can learn from his experience — what to do and what not to do — to create
your own successful startup. “The Purpose Is Profit” eliminates the mystery of becoming an entrepreneur. You will learn:
• Why distinctive competence trumps passion
• Where and when to get funding without losing control
• How to build an entrepreneurial brand that lasts
• Why profit should be factored into every business decision
• How ethical behavior breeds trust and unlocks profit
As a bonus, “The Purpose Is Profit” includes two manuals: “The Startup Roadmap” details the 21 steps you should take to build a profitable business. “The Startup Funding Guide” delivers the tools you need to fund your business. ♦