Gooday. It’s 2020 & time for our first business book review of the year…
For me. When trying to grow a business. Profit has always been much more important than revenue. Gaining consistent profit though, for most small businesses, is very difficult & we’re no different.
You’ve probably heard the saying. Revenue is vanity, profit is sanity & cash is king.
Serial entrepreneur & author (Mike Michalowicz) swears by this mantra & has developed a cash management system, which is helping 10’s of 1000’s of small businesses achieve instant profitability.
And he’s packaged his system into a book, called ‘Profit First’.
Mike revels why the traditional accounting formula of Sales – Expenses = Profit is a myth that locks you into a never-ending cycle of selling more yet profiting less.
Suggesting that small business owners treat profit like an afterthought & focus way too much on revenue growth, which usually results in the business & owner being starved of cash.
‘Profit First’ takes a behavioural approach to accounting & flips the formula on its head to read Sales – Profit = Expenses.
The book shows how to use the small plates approach to accounting, which allows you to take profit first & spend only what’s left on expenses.
Mike is clear. With this one change you will instantly transform your business from a cash eating monster to a profitable cash cow.
As a small business owner, this approach to accounting is really interesting & I’m going to give the book another read, before giving it a try.
‘Profit First’ gets a thumbs up & 5 stars.
If you’ve got any questions about the book, connect & message me on LinkedIn or drop me an email to darren@mytotalofficesolutions.com
You can watch all our business book reviews at mytotalofficesolutions.co.uk/business-book-reviews
Thank you for watching & we hope you have a profitable 2020.