Profit first

Writer: Mike Michalovich

Successful entrepreneur Mike Michalowicz has developed a behavioral approach to accounting to flip the formula to: Sales - Profits = Expenses. Just as the most effective strategy for weight loss is to reduce portion sizes by using smaller plates, Michalowicz explains that by taking profits first and allocating only what's left for expenses, entrepreneurs will transform their companies from money-grubbing monsters to money-generating cash cows.