Transform Your Business from a Cash

Profit First flips the traditional accounting formula—Sales – Expenses = Profit—on its head and replaces it with a simpler, more powerful principle: Sales – Profit = Expenses. In this eye-opening book, entrepreneur and author Mike Michalowicz argues that most small business owners prioritize growth and operations at the Business and Money Tips Books expense of actual profitability. He presents a practical system that ensures you take your profit first—literally—by allocating a percentage of income to profit before paying operating expenses. The book outlines how to set up separate bank accounts for different business functions (like profit, taxes, owner’s pay, and operating expenses), creating automatic financial discipline. Through real-world examples, simple language, and a touch of humor, Michalowicz demonstrates how businesses of all sizes can become consistently profitable without needing complicated spreadsheets or financial expertise. Profit First is ideal for entrepreneurs, freelancers, and small business owners who feel constantly cash-strapped despite healthy sales—and want a smarter, sustainable way to manage money.