Book Byte #85 "Profit First" by Mike Michalowicz
Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
📣 Curious Quotes from the Author
“When less money is available to run your business, you will find ways to get the same or better results with less. By taking your profit first, you will be forced to think smarter and innovate more.”
“Eliminating unnecessary expenses will bring more health to your business than you can ever imagine.”
“To grow the biggest and the fastest, you need to be the best at one thing you do. And to become the best at something, you need to first determine what you are best at and do it a whole lot better. To get there, you take your profit first and the answers to being the best at something will reveal themselves.”
“Primacy Effect. The principle is this: We place additional significance on whatever we encounter first.”
“All revenue is not the same. If you remove your worst, unprofitable clients and the now-unnecessary costs associated with them, you will see a jump in profitability and a reduction in stress, often within a few weeks. Equally important, you will have more time to pursue and clone your best clients.”
“A financially healthy company is a result of a series of small daily financial wins, not one big moment. Profitability isn’t an event; it’s a habit. WHY”
“Putting your nose to the grindstone is a really easy way to cover up an unhealthy business. We think that if we can just work harder, longer, better—if we can just hold out—something good will happen one day.”
“A lack of profitability is consistently the major reason cited for business discontinuation.”
“Profit is not an event. It's a habit.”
“Small, repetitive, continuous actions, chained together, build momentous momentum”
📚 Cognition of the Book’s Big Idea:
The greatest method to ensure that your firm generates a profit is to simply accept it. By devoting a percentage of every income to profits right away, you develop the habit of running your firm with less money. This will drive you to examine your processes and become more innovative and effective wherever possible, resulting in more money in your pocket. Form a regular habit of handling your money. Rather than waiting until the end of the month to transfer funds between accounts and make any necessary payments, begin doing it every two weeks.
Facing your finances often allows you to maintain close track of how your savings are doing and where your money is going, giving you a clear picture of where you stand financially at any one time.
🛠️Fixing the Tech Industry
Profit as Technical people isn’t a concept we are well acquainted with. We tend to demand high salaries but do we often produce the value of those salaries? Do we actually bring money in from direct sales? Some of us may, but the majority is us out there as engineers working to make sure things are operating efficiently, not generating revenue.
It’s to make sure we are all worried about profit for our companies, or else we’ll find ourselves expendable even more than we already think we are.
🤝Collaborate with others with this Social Media Prompt:
What can you do in your financial life to make sure we seek profit first?