On this episode of The Wealthy Wellthy Podcast, I welcome guest Mike Michalowicz. Mike is the entrepreneur behind three multimillion-dollar companies and is the author of Profit First, The Pumpkin Plan and what BusinessWeek deemed the entrepreneur’s cult classic, The Toilet Paper Entrepreneur. Profit First is one of my favorite books so I am very excited Mike joined me on this episode.
In this conversation, we take a closer look into Mike's “profit first” model and fiscal responsibility. I have taught so many of my clients about personal finance and how to use the profit that they take from their business into their household, but Mike points out one area entrepreneurs historically fall short is establishing how much profit they are going to take from their business first.
According to the Small Business Administration, 83% of small businesses are in check-to-check survival, and Mike notes that if your business is operating this way, you are not taking care of yourself and likely not listening to what your business is telling you about your margins. Mike speaks from experience on this subject, having evaporated all of his personal wealth at one point in his entrepreneurial journey due to “arrogance and ignorance”, his books and teachings are a guiding light for many new and seasoned business owners getting started on the path to profit.
Be sure to listen until the end as Mike gives us a sneak peek of his newest book, which will be hitting shelves in 2020. The topic surrounds the necessity hierarchy for business progression, which is based on research from businesses both big and small and always includes these steps: (1) Sales process, (2) Predictable profit, (3) Efficiency, (4) Impact, and (5) Legacy.
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