Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

Mike Michalowicz flips the traditional accounting formula on its head. Instead of Sales minus Expenses equals Profit, he proposes Sales minus Profit equals Expenses. By taking your profit first and forcing your business to operate on what remains, you build a company that is profitable from day one.

Why Start Here

Profit First is the most practical cash management system ever written for small business owners. Michalowicz draws on behavioral psychology to explain why entrepreneurs chronically overspend: when there is money in the account, we find ways to use it. His solution is disarmingly simple. Set up multiple bank accounts, allocate percentages to profit, owner pay, taxes, and operating expenses, and then run your business on what is left in the operating account.

The system works because it uses the same psychological tendencies that cause overspending to enforce discipline. Dozens of case studies throughout the book show businesses of all sizes implementing the system and seeing results within months.

What to Expect

A 224-page book that reads quickly and is packed with actionable steps. Michalowicz writes with humor and energy. You will finish it with a concrete plan for restructuring how money flows through your business.