MAXIMIZE Your Financial Health by Adopting Profit-First MODEL

29 Mar 2023 · 1 min

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Jayson Lowe (speaker) recommends that businesses adopt the "Profit First" model (developed by Mike Michalowicz) to prioritize profit. He contrasts the traditional accounting formula (sales − expenses = profit) with the Profit First formula (sales − profit = expenses), arguing that taking profit first forces smarter decisions, innovation, and allows business owners to enjoy rewards. He explicitly directs listeners to get Mike Michalowicz's book Profit First and embrace the model as an advantage for their business.

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One financial tip that I would absolutely give to businesses to help them out is to embrace, implement, and follow the profit first model. The profit first model was developed by Mike Malkowitz, the author of the book titled Profit First. The whole idea, the whole essence, is to prioritize profit first. So we're all familiar with the basic accounting formula of sales minus expenses equals profit. Well, what does that do to profit? It moves it right down to the bottom of the pile. If we change that formula to sales minus profit equals expenses, by prioritizing profit first, it enables the business owner and compels them to think smarter, to innovate, to do things differently in their business while still being able to enjoy the fruits of their labor and the rewards that come along with it. And so getting a copy of Mike Malkowitz's book Profit first, embracing that model is going to be an enormous advantage to your business.