This review and breakdown of the book Profit First by Mike Michalowicz was born out of necessity. While my businesses are profitable, we haven’t had a system that guides us to more complex financial decisions. Sound familiar?
Check out the video review for more details, but the idea behind this book is that profit CAN be planned for. More than that, it should be planned for and we should stop thinking in the Revenue – Expenses = Profit mindset.
However, it goes further and defines the framework by which you can accomplish this – which I certainly appreciate as there is no shortage of books that have goals and ambitions but not as much actionable content.
However, Profit First has a lot for you to do! I suggest giving the 200 or so pages a quick read through for the main ideas, which are:
- Focus on profit
- Set up a system that uses multiple accounts, removes temptation, and enforces rhythm
- Complete an instant assessment (free)
- Set targets based on assessment and move towards them
On top of these main ideas, the book delivers the steps needed to move towards your Targets from your Current state.
Who would this book be good for? If you own your own business, freelance, or are otherwise in charge of the financial well being of yourself, then it’s worth checking out.
You’ll have work to do – there’s no free lunch, but this gives you the frame work to increase profitability according to a set system.
As an added bonus the book offers many insights into cost cutting and how to approach financial problem solving; reducing debt, increase utility of existing assets and more.