February 13, 2023

006: Behind the Scenes of Profit First with Mike Michalowicz

25 minutes

Learning to properly manage your business finances is one of the most important tasks for any business owner or entrepreneur. Developing a solid financial strategy and understanding what you need to do in order to maximise profits can determine whether or not your business succeeds or fails.

In the world of small businesses, Profit First has become an increasingly popular method for business owners and entrepreneurs to better understand their finances, identify potential risks and grow their companies more effectively over time.

In this episode of Profit First for Tradies, we talk with Mike Michalowicz, author of Profit First and co-founder of Profit First, as he explains what Profit First is. According to Mike, Profit First is a simple and effective way to ensure that your business stays profitable.

By applying the Profit First principles, business owners and entrepreneurs are able to set aside a certain percentage of their income for profits before allocating the rest for other expenses. This allows them to track and monitor their finances more closely and identify areas where they can potentially save money or invest in growth opportunities.

In this episode of the Profit First for Tradies, you’ll learn the following:

The Profit First book and its impact (02:27)
What is Profit First (04:44)
The importance of researching and sticking into your process (07:38)
The importance of being of service to humanity (09:25)
How to recruiting and retaining staff (14:27)
Mike’s favourite story of transformation from a Profit First client (19:24)
The puritanical definition of profit distributions (22:00)

Profit First is fast becoming one of the most popular strategies among small business owners who want to increase revenue, manage cash flow more effectively, and build a solid foundation for sustainable growth. Learn more about it in this episode!
If you haven’t listened to our previous episode about Nailing the Instant Assessment, go back and check out Episode 005.
QUOTES

“If you have to pay your staff good money to keep them and hire well, then you've got to know your numbers.” -Katie Crismale-Marshall

“When you have income, take a portion of that money, hide it away for your future and what's left over is what you live off of.” -Mike Michalowicz

“Potential is where we identify someone's strength before they've deployed them experientially.” -Mike Michalowicz

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