Hey, it’s Steph! Here’s a book that every business owner should read: PROFIT FIRST by Mike Michalowicz.
I read this book three years ago and I still find myself coming back to it whenever I need a good reminder.
As the title suggests, Profit First offers a counterintuitive cash management system that can help entrepreneurs break free from the doom spiral and achieve sustained profitability for long-term growth.
Michalowicz takes the traditional method of accounting (i.e. Sales – Expenses = Profit) and flips the equation (Sales – Profit = Expenses) to re-frame the way entrepreneurs think about their cashflow.
And it’s absolutely GENIUS! Business owners tend to spend their money and consider whatever’s left as profit. By prioritizing profit, you become forced to innovate and find ways that will get you the same or even better results with less amount of resources.
The principle here is to run your business based on what you can afford to do today rather than what you hope to be able to afford someday.
If you want to transform your business, give this book a read!