Mike Michalowicz's book, Profit First, provides a simple yet foundational idea: take your profit first. His theory flips the traditional sales - expenses = profits formula on its head, by telling small business owners to take their profit before paying expenses. He shares how we are all hardwired to spend what's available to us, so we must put those profit dollars out of sight, out of mind. By using Michalowicz's Profit First framework, thousands of entrepreneurs have already turned their cash-eating monsters into money-making machines. Over time, these businesses will see their profits accumulate into hefty war chests, enabling them to hire top talent and actually grow on a consistent basis. If you are an entrepreneur, investor, or owner-operator of any business, I think you'll find plenty of useful ideas in here.
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Profit First - Mike Michalowicz
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Recommendation of the Week: Palmer Luckey - Invest Like the Best
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The Web of Ideas: Profit First (my notes on the book)
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Show Notes:
4:17 - The Problem
8:08 - You can't always grow your way into profits
13:14 - Optimize for DURABILITY of consistent growth
20:40 - The key to profits? It's as simple as buying smaller plates...
25:36 - Implementation
29:30 - Adopt a question-everything mentality
36:14 - Pay peanuts and you get monkeys
40:29 - The best thing money can buy you is freedom