Profit First: Interview with Mike Michalowicz

Mike Michalowicz authorIt probably isn’t easy to have shared your business failures and the story of letting your family down in your own book but what compelled you to share something this personal?

It was very hard to share my failures, and specifically losing all my money, our home and even having to cancel my daughter’s horse riding lessons, because I couldn’t afford it, was devastating to my identity. I went through two years of depression, struggling with my thoughts. Then I realized that when I shared it I felt momentary relief which would give me time to focus on improving things. The more often I shared it the more often I had temporary relief and could work on improving my situation.

I also came to realize that everyone experiences hardships and challenges. Some people, like me, lose all their money. Others have health trauma or relationship issues or abuse. Keeping that stuff trapped up keeps us trapped. So I now share when I can and when appropriate to empower others to do the same.

By putting my story in Profit First, I feel that it tells others that they are ok. That they are not alone. And that they can fix things.

I know this is a common question you get asked from the Profit First book but if you suggest business owners on taking profits first how can people grow?

Profit First book
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This is the most common question I get. The answer may be surprising: by taking your profit first, you facilitate faster growth! We have over 100,000 businesses now doing profit first, and the reports stream in from companies that are growing faster than they ever have once they started taking profit first. The reason is that when you take your profit first, you are forced to use the remaining money in a much more targeted fashion (because there is less of it). In other words, you are forced to use your money on what works, and don’t waste money on “testing” or “hunches” or “everyone else does it” growth “opportunities.

In the world of online marketing, there are many things and services you can buy that all sell you on the idea that it is an investment. How do you teach people to stop or answer the what-if question that this next spend is going to yield big returns and help them get to that next level?

Everyone who sells their products/services, hopefully, believe in their products. Therefore, from their perspective what they offer is an investment (as opposed to the cost) and will deliver benefit beyond the cost. Shoot, even for myself, I believe my books are an investment.

The key is this, the consumer must decide if they are also going to make the effort and put in the time to extract the benefit. This is the most overlooked part. For example, if you pick up one of my books for $20, you will then determine if this is an investment or cost. If you read the book and apply the strategy, it is an investment with a return – and a f’ing great one, if I do say so myself. But, if you buy my book and it sits on your shelf, never read, never, now you just wasted $20 and it is a cost.

So, in theory, should business owners not buy your book and save money?

LOL. Good question! The idea of not spending money could go on further… not buy the book, not pay employees, not buy food and not pay the rent. Those all in the short term will preserve money but may have dire consequences. It is a classic penny wise, pound foolish mentality.

In regards to my book, if you have no intention of reading it or doing it, I surely wouldn’t spend a penny. If you are committed to learning it, evaluating it, and then taking action in a way that will serve you – even if it is uncomfortable – then get over to Amazon and get the book now!

For those of us that have read your Profit First book, what’s the first thing you want your readers to do or recommend in getting started?

Open one account immediately. No excuses. No overthinking. Just get your ass to the bank and setup one account (or all five, since you are there). The one account is PROFIT. Then, with the account open, start allocating 1% of your income to the PROFIT account. Over time that 1% will become 2% and so on.

Clockwork by Mike Michalowicz
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What other books do you have and recommend to read?

I have Clockwork, The Pumpkin and more. The thing is this… ask yourself what is the biggest challenge you need to fix in your business. Once you know that, read that book. If you work all the time (you know, workaholism) then read Clockwork. Need to grow fast and organically, read The Pumpkin Plan. Is the market your in changing? Read Surge. Are you a startup? Check out The Toilet Paper Entrepreneur. Feeling lost at times in your own business, never really getting ahead, then my new book in 2020 (the title is still a secret) will answer that.

About Mike Michalowicz

Mike Michalowicz is a best selling author of many business books including Profit First and his recently launched book Clockwork. Visit his website at https://www.mikemichalowicz.com/