TEDx Profit First by Mike Michalowicz

The GAAP formula has been around for ever: Sales – Expenses = Profit. Too bad its wrong. The formula rarely results in profit, and by using this formula most entrepreneurs stay stuck in check-to-check businesses. There is better formula one that assures profitability. It’s the Profit First formula: Sales – Profit = Expenses

Comments

18 thoughts on “TEDx Profit First by Mike Michalowicz”

    1. Hey Barbara – I think it is actually very easy to execute, because we already do. The problem is we use one big plate, and then easily use everything on the plate. I suggest that we simple setup multiple accounts and divide up income into these accounts as it comes in. Then the money will be on “small plates” and our normal behavior will kick in… using what is made available.

  1. I think we struggle because of Parkinson’s law. The law that says people consume all of what is made available to us. So if we have all the money in one checking account, we spend it all. If we just have some, and the rest is hidden away, we spend all of what we can get access to. Just human nature. We most remove the temptation from ourselves.

  2. Mike,

    Excellent speech, I love the profit first formula. I currently teach high school business classes (as well as run a small business on the side), and I will be using your speech and concept in my classes because I strongly believe that your assertion that we spend what we make is absolutely true and a major problem not only for business, but more so for families in general.

    Thanks for the speech, I’ll be getting to the book soon!

    Paul Limpert

  3. Mike teaches powerful principles in all of his books. Love his stuff. Thanks for the visual, reading this story in the book, you really made it come to life.

  4. Mike,
    I loved it, especially the innovative point of Parkinson’s Law and the by product of being forced to innovate.

    Something to think about. Your story was touching and you wouldn’t be the kind of giving man that I personally know and appreciate without your experience. I further believe your kindness will be passed down to your wife and kids.

    All the Best,
    Tommy

  5. This is a great speech. I think it’s a really interesting way of looking at a business, and I agree with the profit first concept. I’m sure it would benefit a lot of people. Thank you!

  6. This is a great take on business. I also think taking your profits first is a great plan. I find your story really touching and really motivating – thank you so much.

  7. I love this strategy.

    In NLP (neurolinguistics) we talk about what do you want vs. what you don’t want. Profit First supports the simple concept that positive outcomes are much easier for our brains to digest. It conjures up positive sensory responses thus activating our motivational levels. Genius Mike!

  8. Mike,

    That story about your daughter is so powerful, thank you for sharing.

    I started listening to The Pumpkin Plan last week and it is hands down the best book on how to grow a business ever written (I have read hundreds of others).

    Since last week, I told 3 other friends to buy it. They all did and now we are all helping each other Pumpkin Plan our businesses together. It is so cool it is hard to put it all into words. Thank You for doing what you do, every entrepreneur has to hear your message. Greg

  9. Hi Mike, from the bottom of my heart, I really adore your books and lectures. They help and work. The best wishes and thanks for teaching :))

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