The purpose of any good business is to not only to change the world and better society at large but at the end of the day, it also needs to be about turning a profit if the business is going to sustain itself and the one who created it.
So often, and this is true for Phillip and me, the money comes in and the money goes out. Learning the skill of paying yourself first is the core take away from Profit First by Mike Michalowicz. In the simplest of terms, it is the art and practice of taking a portion of every dollar of revenue, even when you don’t think you can spare it, and putting it into an account that has a purpose.
The purpose of that account is profit. Not rent, utilities or payroll, but profit. You have to build your profit in on the front end of your business, not the back end. That is the whole point of the book and it is written in such a way that makes you laugh, helps you commiserate and gives you hope for a different future.
This book was super helpful, especially in a partnership, for Phillip and me to start setting money aside each month that we don’t touch. We actually set up a different and separate bank account and titled it, “Profit Account”. We have been adding to that account now for almost a year and it is amazing how fast it has added up.
I credit this book with helping us, even as financial advisors, get back to basics and pay ourselves a profit first. If you are just starting a business or looking to harvest more profit, this may be a book that helps point you in the direction of finally putting yourself first. Your business and your family are counting on it.