Hey Square Readers,
You voted and chose Profit First by Mike Michalowicz as our Square Readers Book Club book for January & February 2024!
Hereโs a quick summary:
โA simple, counterintuitive cash management solution that will help small businesses break out of the doom spiral and achieve instant profitability. Just as the most effective weight loss strategy is to limit portions by using smaller plates, Michalowicz shows that by taking profit first and apportioning only what remains for expenses, entrepreneurs will transform their businesses from cash-eating monsters to profitable cash cows. Four simple principles can simplify accounting and make it easier to manage a profitable business. A small, profitable business can be worth much more than a large business surviving on its top line. Businesses that attain early and sustained profitability have a better shot at achieving long-term growth.โ
Weโre taking December off for the Festive/Holiday Season, so weโll start reading on Tuesday, January 2nd, so get ready and pick up a copy at a local library, bookstore, Amazon, or anywhere else!
Weโll have discussion threads being posted throughout the next two months, and a Live Discussion Video Chat on Tuesday February 27th. See the event page for the time and more information.
View and Subscribe to all threads about this book.
We canโt wait to read with you!
Pesso
Interesting. I just put a hold on this at my local library. I was reading the synopsis online and this particular tidbit caught my attention โ โSales minus profit equals expenses.โ A subtle, but intriguing, flip of the traditional accounting model!
Since we rebranded Piperโs and changed the business model (after the pandemic panic), Iโve been taking the approach that my profit/owner draw is sacrosanct and that I must do everything humanly possible to preserve it. Of course, emergencies happen โ having to replace our eleven-year old soft serve machine, for example. But, overall, since changing my perspective from lowering expenses to maximizing profit, my owner draws have been more consistent and more satisfying. And, the best part is the business hasnโt suffered, nor have my employees.
Since Piperโs is a pass-through partnership LLC, meaning that my husband and I pay corporate and employer taxes on profits anyway, this only makes sense and seems fair, right? Anyway, what Iโve done is a baby step. But Iโm betting that an author who has that perspective is writing something that I would consider a worthwhile read.
Sweet. Looking forward to finally joining this august group of bookworms!
