Conventional accounting uses the logical (albeit flawed) formula: Sales - Expenses = Profit. The problem is that businesses are run by people, and people are not always logical. Serial entrepreneur Mike Michalowicz has developed a behavioral approach to accounting that flips the formula: revenue - profit = expenses. Just as the most effective weight-loss strategy is to limit portions by using smaller plates, Michalowicz shows that entrepreneurs can transform their businesses from money-eating monsters into profitable cash cows by factoring in profit first and only using the rest for expenses. With Michalowicz's Profit First System, readers learn that:
- Following 4 simple principles can simplify accounting and make it easier to run a profitable business by looking at account balances.
- A small, profitable business can be worth much more than a large business that lives only on its profits.
- Businesses that are profitable early and sustainably have a better chance of long-term growth.
With dozens of case studies, practical step-by-step advice, and his trademark sense of humor, Michalowicz has the roadmap for any entrepreneur to make the money they have always dreamed of.
