January & February 2024 Book Club: Profit First by Mike Michalowicz

[Pesso]

Hey Square Readers,

You voted and chose Profit First by Mike Michalowicz as our Square Readers Book Club book for January & February 2024!

Here’s a quick summary:

“A 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.”

We’re taking December off for the Festive/Holiday Season, so we’ll start reading on Tuesday, January 2nd, so get ready and pick up a copy at a local library, bookstore, Amazon, or anywhere else! 

We’ll 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 can’t wait to read with you!

Pesso

[Pesso]

I'm excited too, @Stacelyn24 ! Just got my copy and I might dip into it early too

[Lovewell]

@Pesso such an incredible book!! Ready to read it again! 

[Pesso]

Thanks, @Lovewell ! Can't wait to hear your thoughts the second time around in our discussion threads!

[MaggieToo]

I'm finally getting to read this one. 👍🏾

[Pesso]

So glad you're excited for this one, @MaggieToo ! Can't wait to hear your thoughts next month!

[GoClutterless]

Ha, i've had this book on my shelf for about a year; looking forward to finally reading it!🙌🏾

[Pesso]

Amazing, @GoClutterless ! So glad this'll give you an excuse to read it! Can't wait to hear your thoughts in our discussion threads soon-

[Doran]

My CPA just recommended this!  Just the push I need to finally dig into this book.

[Pesso]

Amazing, @Doran ! 
So excited to hear your thoughts on it, and I'm glad this is coming at the right time for you

[CareyJo]

Y'all are really going to have to make comments on what this book is about since I don't get to participate in this one... I didn't even get to read past the first chapter of the last one because November and December are my busiest time of the year.  I chose not to start this new one because I will have so little time to read being gone for two weeks in February and trying to get taxes done before we go.  I hope everyone enjoys it!  I'm anxious to hear what it's really about.  And thanks for the gift Alyon!

[Pesso]

I hope you have a wonderful time off, @CareyJo , and best of luck getting everything done in time! Rooting for ya, and I'll do my best to get a lot of good explanations and comments for you-

[TheRealChipA]

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 — “Sales minus profit equals expenses.”  A subtle, but intriguing, flip of the traditional accounting model!  

Since we rebranded Piper’s and changed the business model (after the pandemic panic), I’ve 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 — 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 hasn’t suffered, nor have my employees.

Since Piper’s 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 I’ve done is a baby step.  But I’m 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!

[Pesso]

Thanks for sharing, @TheRealChipA !

It's definitely an interesting mindset shift, and hopefully it works and resonates with some folks-

That is amazing. It's so important to focus on paying yourself first, and I'm so glad that it's been working for you! It's so easy to skip paying yourself to focus on the business and employees, and that's a trap many don't come out of. 

So excited to have you join us on reading this one, and hopefully the book will help with the next steps for you! 

Can't wait to hear all of your thoughts soon-

[CareyJo]

Hey Chip~

Just wondering if you've got a good CPA and how they are structuring you for the best tax breaks.  We don't have employees but we pay ourselves as employees and get bigger tax breaks.  We originally just operated as a Partnership, LLC but changed that with the IRS several years ago to an S Corp.  We're still an LLC for the protection and we didn't have to change our designation with the state, but it means that the business gets the tax breaks for paying us as employees.  If you're not already doing this, you may want to ask your CPA about it.  The CPA files a form with the IRS that changes it for you.  It's not an Inc. so you don't have to go to court to file any papers and you can continue with your employees as you already are.  We've been self-employed for decades and this was the best election we ever made because we were paying such high taxes on the income.  Although I've always done our books as profit first, we've always agreed that our house payment and taxes come before anything else.

[DalagaLJ]

I LOVE this book. I read it a couple of years ago and often refer back to it. Can't wait to read through it again with all of you!

[Pesso]

That's wonderful, @DalagaLJ ! I can't wait to hear all of your thoughts as a second time reader of it!

Absolutely check out our discussions as they come-

[Anjoli]

Profit First completely transformed my business and personal finances.  I'm going to listen to the audio book again and I can't wait for the discussion.

[Pesso]

That's so great, @Anjoli ! Thanks for sharing!

I'd love to hear how it helped you, and to hear all of your thoughts in the discussions!

You can check out the first one here! 

[CKNaturalsLLC]

Hi, 

Started reading a sample of this book on Amazon and I was immediately all in. 

Can't wait until my copy is delivered!!!

C. White

Ck Naturals, LLC 

[Pesso]

Amazing, @CKNaturalsLLC ! I'm so glad it hooked you in so quickly -- can't wait to hear your thoughts in our discussion threads. 

You can check out the first discussion here, which you can dive into before even starting to read it.

Thanks again for joining us!

[MattisonCentral]

Started reading this back in December, so very excited to be able to join in the discussions about this book and how it's helped others to succeed in their business!