I just finished reading Profit First by Mike Michalowicz. It’s an amazing book! I finally read it after a gazillion friends recommended it to me.
If you’ve already read the book and drank the kool-aid, you can skip to the bottom for the bank I found.
If not, read on to see what the book is about.
I would basically call it ‘the business version of Dave Ramsey’s Total Money Makeover’. Mike uses a lot of concepts that’ll be familiar to Dave Ramsey fans, but applies them to the business world. He mainly focuses on an envelope style system to make sure you’re actually in business instead of working for yourself, getting no pay, and building stress while you struggle to keep the lights on and pay your employees.
Here’s the official synopsis for the book-
Conventional accounting uses the logical (albeit, flawed) formula: Sales – Expenses = Profit. The problem is, businesses are run by humans, and humans aren’t always logical. Serial entrepreneur Mike Michalowicz has developed a behavioral approach to accounting to flip the formula: Sales – Profit = Expenses. 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. Using Michalowicz’s Profit First system, readers will learn that:
· Following 4 simple principles can simplify accounting and make it easier to manage a profitable business by looking at bank account balances.
· 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.
With dozens of case studies, practical, step-by-step advice, and his signature sense of humor, Michalowicz has the game-changing roadmap for any entrepreneur to make money they always dreamed of.
If you’re like me, you probably read the book, tried to find a Profit First friendly bank, and realized that it’s not an easy task.
- My current bank didn’t work without fees and minimums.
- I checked several online-friendly banks who either refused to help or couldn’t grasp what I was asking.
- The banks recommended on Mike’s website either weren’t really banks (more like banking apps) or had no clue what I was talking about.
I finally found one that fit the bill for the clients I consult for (mostly small businesses in the construction realm).
Bluevine Bank, a completely online bank affiliated with Bancorp, had what I needed. They’re actually set up where you can get an account and then subdivide it into sub-accounts. It worked perfectly for me.
My client got set up, linked his old accounts, and created his sub-accounts. Now he’s ready to rock and roll with the Profit First system.
By the way, this isn’t an affiliate link, and I’m not getting a referral fee. I just wanted to pass on some info. I figure if I’m having trouble with it, others were too.