If you’ve ever thought “How is my company able to hit all time high revenue but I still never have any profit?”, then this episode of Luminary Business Podcast is a must listen!
Today I interview Mike Michalowicz, author of Toilet Paper Entrepreneur, The Pumpkin Plan, Profit First, and his newest book Surge.
I originally met Mike at Michael Port’s event for the new book “Steal The Show” and was immediately drawn to his quirky fun approach to accounting. SAY WHAA??? Yes, Mike Michalowicz is actually an accountant with a personality!
In today’s episode we dive into a well known law, Parkinson’s Law and discuss how understanding this simple law can have a dramatic effect on your businesses profitability (measured by how much money is in the business owners bank account at the end of the year)
“When something comes last, it gets ignored” [Tweet that!]
What you will learn in this episode of the Luminary Business Podcast:
- 3:55 The Profit First formula
- 8:15 Parkinson’s Law
- 11:52 How to apply the Profit First system
- 17:22 Start small—1% is all you need
- 18:15 Why you need to move it to a separate bank account
- 19:28 Why do people fail at this system?
- 21:50 The birth of Profit First formula
- 23:25 Success stories of the Profit First formula
- 30:05 The quick way to start with the Profit First system
- 34:00 Go to his website (www.mikemotorbike.com), it’s hilarious
- 34:17 Surge, Mike’s new book
Resources mentioned in the podcast:
- Mike Michalowicz’ awesome books (go get one, they are funny and incredibly helpful):
Mike’s approach reminds me of one of the all time classic book “The Richest Man in Babylon” but his approach is particularly relevant for struggling entrepreneurs (and rapidly growing businesses that still never seem to have money left at the end of the year—no matter how big they get).
Mike is a playful and entertaining guest and on top of being a super valuable resource to anyone looking to master the art of managing their finances, he’s one heck of a nice guy.
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