Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
Categories: Business & Money
Mike Michalowicz argues that small businesses fail to make money because owners pay expenses first and hope something is left. He reverses the formula: sales minus profit equals expenses. Owners divide every deposit among separate accounts for profit, owner's pay, taxes and operating expenses, moving money on the 10th and 25th of each month and raising the percentages quarterly. Drawing on Parkinson's law, he shows how a smaller pool for expenses forces leaner, more inventive spending.
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- Ryan Holiday: “Books that every entrepreneur should read.”