Profit First
By Mike Michalowicz
Why We Love It – Ann Ferguson
This book is for business accounting-type stuff. When most people do accounting, they spend the revenue that’s brought in, and then whatever else is left over is their profit.
And only some people make a profit because they’re spending all they have. This book suggests that, like when you’re on a diet, it’s better to have a small plate instead of a large one because you’re going to eat all of the food on your plate. That’s the way we’ve been conditioned. The same principle applies to your money. Although it goes in a different direction than losing weight. You actually gain money. You will spend what you believe you have so if you make your operating expenses plate a little smaller, you will spend less but you will profit more. It’s really cool This is how it works.
If you take whatever you’ve made, whatever revenue comes in, and move a small percentage to a profit account first, then what’s in your expense account is what you have to spend and still make a profit. There’s a lot more behind this, but it changes your thinking.
Why does this matter? Because if you always feel like you are profitable in business, you’ll always make decisions that help you be profitable.If you’re constantly running behind, don’t have enough money, and don’t know what to do, then you will always be in that energetic vibration and the belief that you don’t have enough.
So in your business, if you would love it to be profitable, start with this book! There have been times when I’ve moved $5, which means I have $5 worth of profit. And there you go. You can say, I run a profitable business.