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How to Become Permanently Profitable

With Mike MichalowiczEP 161

Hello and welcome to another episode of the Let’s Talk Business podcast – the podcast for no-nonsense advice to help you learn, grow, and lead!

If you’ve even considered starting a business, you’ve probably assumed that it can only be profitable if your sales exceed your expenses. Today’s guest turns this idea on its head in his book, Profit First, by proposing a break-through approach to growing your business.

Mike is a former small business columnist for The Wall Street Journal and the former business makeover specialist on MSNBC. Over the years, Mike has traveled the globe speaking with thousands of entrepreneurs, and is here today to share the best of what he has learned. Today he is running his third multi-million dollar venture, Profit First Professionals.

Transcript

[00:01 – 07:05] Opening Segment

• Mike introduces Profit First, a system that teaches leaders and entrepreneurs how to profit first

• How to overcome financial struggles and understand the profit-first methodology

• A listener saved $32,000 in an account after hearing Mike’s advice

• Mike had success from the outside, but his businesses were never profitable, and he lost all his wealth

[07:06 – 13:29] The Profit First Formula: Learn How to Take Profit Without Sacrificing Your Expenses

• It’s essential to share the struggles of entrepreneurship and not paint a rosy picture

The ego needs to be checked to succeed
• The Profit First Formula and how it flips the traditional formula of sales minus expenses equals profit

• If a business cannot pay its bills, it is telling them that something needs to be fixed

[13:30 – 19:47] Uncovering the Benefits of Profit First

• How taking your profits first can help your business succeed

• Take a portion of the profit first, use it to reward shareholders, and build cash equity

• Working harder is not the solution; working smarter is key

• The simplest solution is often the right one

[19:48 – 25:56] Achieving Financial Growth & Stability Through Niche Specialization

• Business owners can double their profits by increasing pricing by 20%

• Businesses that take their profit first grow faster than their competition and become more selective about what they spend

• Reverse engineer niche specialization to outpace competitors in growth

Pay for vacations with cash from vacation account to stay within budget

[25:57 – 31:11] Closing Segment

• For personal budgeting, set multiple accounts for intended use and divide money into different outcomes

• Mike on the rapid-fire questions

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Guest Bio
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Mike Michalowicz

Mike Michalowicz is the author of Profit First, Surge, The Pumpkin Plan, and his newest release Clockwork. By his 35th birthday, Mike had founded and sold two companies – one to private equity and another to a Fortune 500. Today he is running his third multi-million dollar venture, Profit First Professionals.

Mike is a former small business columnist for The Wall Street Journal and the former business makeover specialist on MSNBC. Over the years, Mike has traveled the globe speaking with thousands of entrepreneurs, and is here today to share the best of what he has learned.

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