How I Learned to Put Profit First for My Business

How I Learned to Put Profit First for My BusinessHow I Learned to Put Profit First for My BusinessHow I Learned to Put Profit First for My Business Michalowicz, author of Profit First (Obsidian Press, 2014)I have co-founded, built and sold two multi-million dollar technology service firms admittedly, they were never truly profitable. Every increase in revenue seemed to be matched with an even greater increase in expenses. Every day I checked (and still do) my bank balances.As the balances would climb and fall, so would my confidence and my spending. I lavishly incurred new, unnecessary expenses when my bank account was fat. I panicked when it was thin.This behavior, I have found, is leid unique to me. In fact, of the hundreds of entrepreneurs and business owners I have asked, the vast majority also do bank balance accounting.It was with this realization that I started doing Profit First for myself five years ago. That is when I applied the pay yourself first principle to the operati ons of my businesses. I became my own guinea pig for Profit First.Every quarter since, I have posted a profit. Every business I have invited to flip the Generally Accepted Accounting Principle (GAAP) formula has also posted a profit or, unfortunately in some cases, decided to give up the system because it put too much downward pressure on expenses.GAAP offers so much more in business insights than most entrepreneurs could imagine, but it does fall short on working with an entrepreneurs bank balance habit.I have become an advocate for the Profit First approach to cash management because of the one thing it does do extremely well. It works with the natural habit of business owners. And it functions as a plug-in to all the GAAP accounting systems and processes I have place. It doesnt change GAAP, it simply sits on top.Profit First has transformed my own businesses for the better (if you consider consistent profits better.) Admittedly, Profit First is not the panacea to all cash flow pr oblems, but it surely makes profit a habit.And check out an archive of my recent webinar, Put Profit First. Always, in which I explain how to apply the Profit First strategy for your business.Author BioMike Michalowicz (pronounced mi-kal-o-wits) is author of numerous books including most recentlyProfitFirstas well asThe Pumpkin Plan and the cult classic business book, The Toilet Paper Entrepreneur.He began his first business at the age of 24, moving his young family to the only safe place he could afford a retirement building. With no experience, no contacts and no savings he successfully bootstrapped a multi-million dollar business. Then he did it again. And again. Now he is doing it for other entrepreneurs.Mike is CEO of Provendus Group, a consulting firm that ignites explosive growth in companies that have plateaued and founder of Profit First Professionals, a certification for accountants, bookkeepers, business coaches and other business financial experts, who help their clients maximize profitability he is a former small business consultant for The Wall Street Journal, MSNBCs business make-over expert and an internationally recognized keynote speaker on entrepreneurship.Visit MikeMichalowicz.com, check outMikes Twitter feed, or contact Mike online at MikeMikeMichalowicz.com or at888-244-2843.