Christie JungeA Plus Solutions Inc. · CEO | Profit First Professional

Profit First Myths Debunked | My Business Won't Grow If I Take Profit First

13 Jul 2021 · 2 min

Watch on YouTube

1:30

In this solo video, Mike Michalowicz, author of the Profit First system, addresses a common myth that allocating profit first will prevent a business from growing. He explains that, contrary to intuition, businesses that adopt Profit First actually grow faster than their peers. Drawing on thousands of case studies, Michalowicz argues that the effect is not mathematical but behavioral: by setting aside profit first, owners limit the cash available for discretionary spending, which forces them to be far more selective and ROI‑focused in their investments—especially marketing. This disciplined spending leads to higher‑impact initiatives and accelerated growth. He closes with an encouraging reminder that anyone can implement Profit First successfully.

Chapters

Hi, I'm Mike Michalowicz, the author of Profit First. I'm thrilled to share that Profit First is in the hands of over a million readers now. But there's a problem. There's myths and mysteries circulating, so I'm producing a series of videos to help answer those challenges and questions that you may have and to set the record straight. One question or one challenge is people say, well, if I do Profit First, I'm not gonna grow. I'm in a growth trajectory. I can't impede that. I can't do profit first yet. And that is a myth. In fact, in our case studies, we have thousands of case studies consistently. Businesses that implement profit first actually grow faster than their contemporaries. And that even blew my mind because it doesn't seem to make mathematical sense. It makes behavioral sense. You see, when we allocate money to profit first and we have restricted cash flow available for the spend, we are much more selective in how we spend. We are much more cognizant of the ROI, the return on investment, on the choices that we make. So we make sure that the investments we're making in our marketing actually will pay off. When all the money that comes into the business is available to spend, we take a lot more potshots, it seems, and random tests of marketing, like, hey, everyone else is doing Facebook or Instagram ads, I'll do the same. So businesses that take profit first grow faster than contemporaries because they're more selective, more focused on how to utilize their money, facilitating faster growth. Oh, and never forget this: you, my friend, you've got this. Good luck with Profit First.