You're working harder than ever. Your business is busy, money is coming in the door. But somehow, there's never enough left over at the end of the month. Sound familiar?
If you're nodding your head, you're not alone. A lot of small business owners find themselves trapped in a cycle of making money but never keeping it. They follow the traditional accounting formula they learned years ago: Sales - Expenses = Profit
…hoping that eventually they'll have something left over.
The problem? That eventually rarely comes.
What if I told you there's a system that completely flips this formula on its head?
Profit First by Mike Michalowicz changes the equation to:
Sales - Profit = Expenses
Don’t overlook the power of that simple shift. Instead of treating profit as a leftover, it becomes a non-negotiable.
After helping hundreds of small business clients implement this system, I can confidently say: This book should be on every business owner’s reading list. Here are three reasons why.
1. Profit First Makes Sense
The traditional accounting model puts profits at the mercy of everything else. Got a big expense? There goes your profit. Need new equipment? Kiss your profits goodbye.
With Profit First, profit comes, well...first. It’s that simple. Your business profits are given priority from day one.
Every time revenue comes in, a percentage is set aside for profit before anything else gets paid. That money goes into a separate account that you don't touch for operational expenses.
This forces you to run your business on what's left over, which naturally makes you more efficient and intentional with your spending.
Mike Michalowicz gets it because he's lived it. He's experienced tremendous successes, lost it all, and built it back again. One of the key lessons he learned? There's a better way to manage profits and expenses, and it starts with putting profit first…literally.
Instead of wondering where your money went at the end of the month, you'll know exactly where it is: safely tucked away in your profit account.
2. Profit First Works
Profit First is based on how the human brain works, not how an accountant's brain works. (Not that there’s anything wrong with how an accountant’s brain works…)
Most financial systems fight against human nature. They rely on discipline, complex tracking, and behaviors that aren’t necessarily intuitive.
Profit First embraces how people actually think and behave with money.
The system leverages Parkinson's Law, which states that demand expands to match supply. In simpler terms: Expenses will grow to fill whatever money is available to pay them.
Think about it. When you have $10,000 in your business account, somehow you find ways to spend close to $10,000. When you have $5,000, you figure out how to operate on $5,000.
Profit First uses this natural tendency to your advantage. By removing your profit first and putting it out of reach, you're forced to operate on less. And that naturally makes you more efficient and profitable.
The system also uses multiple bank accounts, each with a specific purpose. Instead of trying to retrain business owners to think differently about money, Profit First works with your natural tendency to spend what you see. That structure prevents overspending and helps reinforce healthy financial habits.
3. Profit First Doesn’t Require You to Be A Financial Expert
Reading about a concept is one thing. Actually implementing it in your business is another.
And Michalowicz provides a complete roadmap for execution.
The book includes:
- Step-by-step instructions for setting up your bank accounts
- Recommended percentages to allocate to different accounts based on your business size and industry
- Gradual implementation timelines
- Real-world case studies of businesses that have found success with the system
- Troubleshooting guides for common implementation challenges
But Michalowicz doesn’t stop there. He's built a network of certified Profit First professionals—including accounting firms like Patrick Accounting—who are specially trained to help business owners implement the system correctly.
This isn't just a book you read and forget about. It's a complete business financial transformation system, backed by tools, templates, and expert support.
Why Profit First Deserves a Spot on Every Business Owner's Reading List
Profit First isn't just another business book to put on your shelf to collect dust. It's a practical, proven system that has helped thousands of business owners go from cash-flow stressed to confidently profitable.
What makes this book so powerful? It acknowledges a fundamental truth: You didn't start your business to become an accounting expert. You started it to solve problems, serve customers, and build something meaningful that lasts.
Profit First meets you where you are. It doesn't require you to become a financial genius or a spreadsheet expert. Instead, it works with your natural behaviors and tendencies.
At Patrick Accounting, we've seen firsthand how Profit First transforms businesses. It gives business owners the clarity and confidence to invest in growth without constant financial stress.
If you're tired of working hard but not keeping much…
If you're done with the paycheck-to-paycheck cycle…
If you’re ready for a system that actually works…
...Profit First should be your next read.
Ready to see what it’s all about?
Check out these other resources:
- Read the first two chapters of Profit First.
- Watch our video: "How to Get Started with Profit First for Your Business!"
- Read "How to Increase Profits for Small Businesses."
And if you want expert help implementing it, we're here when you’re ready.
And if you want expert help implementing it, we're here when you’re ready.
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