Undeniable books | Profit First
Why Profit First Should Be Your Next Read: Transform Your Business and Your Life
When we think of self-improvement, we often focus on mindset, habits, and personal growth. But there’s another area that’s just as critical to your well-being: financial health. Whether you’re running a business or managing personal finances, the principles in Profit First by Mike Michalowicz could be the game-changer you’ve been looking for.
Here’s why this book deserves a spot on your bookshelf — and your action list.
The Problem With the Traditional Approach
Most businesses (and people) operate under this formula:
Revenue - Expenses = Profit
Sounds logical, right? Earn money, pay the bills, and whatever’s left is yours. But here’s the catch: there’s rarely much left over.
When we treat profit as an afterthought, we end up with financial stress, inconsistent cash flow, and a lack of resources for future growth. In other words, we’re constantly playing catch-up.
The Profit First Formula
Michalowicz flips the script with a simple yet profound adjustment:
Revenue - Profit = Expenses
Here’s how it works:
1. Pay Yourself First: Set aside a predetermined percentage of every dollar you earn as profit.
2. Force Financial Discipline: By allocating profit first, you limit the money available for expenses, encouraging smarter spending and creative problem-solving.
3. Build Stability: Regularly setting aside profit creates a financial buffer for unexpected challenges, reinvestment opportunities, and long-term security.
Why Profit First Works
The genius of Profit First lies in its psychology. By treating profit like a non-negotiable expense, you build wealth without having to overhaul your entire operation or lifestyle overnight.
Think of it like healthy eating. If you fill your plate with veggies first, you naturally have less room for junk food. Similarly, if you prioritize profit, you’re less likely to waste money on unnecessary expenses.
While the book focuses on business, its lessons extend far beyond the balance sheet. Here are some personal growth takeaways:
1. Clarity and Focus: Just like setting financial priorities, knowing what matters most in your personal life can help you allocate time, energy, and resources effectively.
2. Discipline: Making profit a priority requires consistency — the same kind of discipline needed to achieve fitness goals, master a skill, or improve your mindset.
3. Peace of Mind: A healthy bank account leads to less stress and more freedom to focus on what truly matters: relationships, personal growth, and your purpose.
Actionable Steps to Get Started
If you’re ready to implement the Profit First principles, here’s how to begin:
1. Open Separate Accounts: Set up dedicated bank accounts for profit, taxes, and operating expenses.
2. Start Small: Allocate just 1% of revenue to your profit account. Gradually increase the percentage as you get comfortable.
3. Stick to It: Review your finances regularly to ensure you’re staying on track and making adjustments as needed.
4. Celebrate Wins: Each quarter, reward yourself by using a portion of your profit. This reinforces the habit and makes it fun!
Profit First isn’t just a financial strategy — it’s a mindset shift. It challenges you to take control of your money, live intentionally, and prioritize what truly matters.
Whether you’re a business owner trying to break free from the paycheck-to-paycheck cycle or an individual looking for smarter ways to manage finances, this book offers practical tools and timeless wisdom.
Ready to make profit a priority? Grab a copy of Profit First and start transforming your financial future today.
