Mike Michalowicz and Nathan Rigney explain why more sales don't fix profit problems. Of 1.2 million people who read Profit First, only 150-200k worked with a certified professional, and those businesses saw profitability four to five times higher. Without a trainer, most quit like gym members do.
Most businesses think the solution to their profit problem is to sell more. I just need more clients. I need more sales. That is not never the solution because sales add stress to the organization, more responsibility. I care for more people, more resources to do it. What improves a business inevitably is a healthy structure.
If we're not growing, you're not growing.
Good to see you.
Me, it's good. Good to see you as well. So we're talking about today just challenges in overcoming issues you have in your business and seeing that, hey, I want to turn it around. But how do you get to that point where hey, I recognize it and now I'm going to do something.
Yeah, with Profit First. I see so many businesses try to implement Profit first. So I'm going to give you some context and a lot fail. That's the problem. So there's about 1.2 million people who've read Profit first in all different languages and different formats from kind to print. There's about 800,000 businesses that have implemented Profit First. There's about 150 to 200,000 that have gone under the guidance of Profit for a Profit First Professional. Here's what's interesting. Most people, a lot of people don't do it. The people that do do it on their own. The implementation rate is usually at best awkward. At worst, they give up and don't do it. The folks who deal with Profit first professionals inevitably are profitable to a multiple like four or five times than if they did it on their own. So my was, why not? Because I made Profit first to be a do it yourself system minimally. And what I found is it's like a gym. I don't know if you've ever been a gym member, but most people that commit on New Year's Day I'm going to start working out, don't do it. A large portion that do do it try to do it on their own and they give up because it's a painful process. The ones who hire a trainer stick with it. And I said, why do they? There's accountability. I have to do it because you're holding me accountable. There's appropriateness. You give me the guidance saying don't injure yourself, don't do too weight or do more when you're doing too little. So there's guidance, there's the appropriate levels and there's moving forward with accountability. When people do Profit first with a with you, with a Profit First Professional, they are hands down more profitable for longer, forever. In fact, they become permanently profitable and they build the healthiest businesses. So that's what I've seen.
That's awesome. Yeah. And it's happening out there. So businesses are turning around. It's just a matter of I think that getting out there and going, hey, recognizing that there's something I want to fix and being brave with enough to say, hey, I'm going to ask for help. And it's okay to ask for help, isn't it?
You need to. You need to get help. If you had the answer, you would have it fixed. It would already be done. You wouldn't be considering this. Most businesses think the solution to their problem is to sell more. I see more clients. I need more sales. That is not never the solution because sales add stress to organization, more responsibility. I care for more people, more resources to do it. What improves the business inevitably is a healthy structure. When you take your profit first, it forces that conversation that you have as a profit first professional to figure out, how do I sustain this? Now it reverse engineers a healthy organization. So if you want to have a healthy company implement profit first, do it under the guidance of a profit first professional. It'll ensure you build a foundation of a healthy organization and then you can expand. Don't try to sell your well, sell your way out of it. That's a mistake.
That's it. So take action. So ask yourself, what are you going to do? Do you want to make a change?
Hire this guy. Nothing to do, man.
Thank you.
I love it. Pleasure, brother. Good seeing you. Thanks for here for me.
Thank you. No, thank you for writing the book and being an awesome mentor.
My pleasure.
Okay, thanks guys.
That's cool. I mean, it's like, you know, informal.
