Over the last weekend, I got to read Profit First, the newest book from Mike Michalowicz. As I read, I thought of one client after another who could benefit from implementing Profit First in his or her business. In talking to business owners day in and day out about the challenges they face in their business, I hear a lot of the same challenges coming up over and over. Many of these challenges relate to managing finances in the business.
I am a convert. “Profit First: A Simple System to Transform Any Business From A Cash-Eating Monster to a Money-Making Machine” will be here in less than a week, and for small business owners all over the world, not a moment too soon. I have had the privilege of reading an advance copy of this third book from author (and Provendus CEO) Mike Michalowicz, and the following is a summary of what I love about it.
While I have co-founded, built and sold two multi-million dollar technology service firms, I admit they were never truly profitable. Every increase in revenue seemed to be matched with an even greater increase in expenses. Every day I checked (and still do) my bank balances. As the balances would climb and fall, so would my confidence and my spending. I lavishly incurred new, unnecessary expenses when my bank account was fat. I panicked when it was thin.