What if, rather than you serving your business, your business served you? What if you could turn a profit from your very next deposit? And what if you had the power to guarantee that profitability?
In this week’s episode of the Let’s Talk Business podcast, serial entrepreneur and bestselling author Mike Michalowicz shares his simple cash-management solution that helps businesses break the day-to-day struggle for survival and become permanently profitable immediately—no matter their size, industry, or how much debt they carry.
If you’re ready to transform your business from a cash-eating monster to a money-making machine, check out Mike’s interview below!
[00:01 - 07:05] Opening Segment
• Mike introduces Profit First, a system that teaches leaders and entrepreneurs how to profit first
• How to overcome financial struggles and understand the profit-first methodology
• A listener saved $32,000 in an account after hearing Mike's advice
• Mike had success from the outside, but his businesses were never profitable, and he lost all his wealth
[07:06 - 13:29] The Profit First Formula: Learn How to Take Profit Without Sacrificing Your Expenses
• It's essential to share the struggles of entrepreneurship and not paint a rosy picture
The ego needs to be checked to succeed• The Profit First Formula and how it flips the traditional formula of sales minus expenses equals profit
• If a business cannot pay its bills, it is telling them that something needs to be fixed
[13:30 - 19:47] Uncovering the Benefits of Profit First
• How taking your profits first can help your business succeed
• Take a portion of the profit first, use it to reward shareholders, and build cash equity
• Working harder is not the solution; working smarter is key
• The simplest solution is often the right one.
[19:48 - 25:56] Achieving Financial Growth & Stability Through Niche Specialization
• Business owners can double their profits by increasing pricing by 20%
• Businesses that take their profit first grow faster than their competition and become more selective about what they spend
• Reverse engineer niche specialization to outpace competitors in growth
Pay for vacations with cash from vacation account to stay within budget
[25:57 - 31:11] Closing Segment
• For personal budgeting, set multiple accounts for intended use and divide money into different outcomes
• Mike on the rapid-fire questions
Want to connect with Mike? Follow him on LinkedIn and Instagram. Visit his website to make your journey simple!
Key Quotes:
“Entrepreneurship's not easy, but to make the elements simpler is my mission.” - Mike Michalowicz
“As a small business owner, we all need to realize we are shareholders in our own business.” - Mike Michalowicz
“You can't wait to be profitable to make profit. You have to start making profit today.” - Mike Michalowicz
“We have to realize that our business and our personal lives are intertwined. They are not separate. So we have a big dependency on our business and its income and profitability to support our lifestyle. “ - Mike Michalowicz
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