Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

Main Stage / Ballroom

The profit formula is simple: Sales – Expense = Profit. The only problem is, it’s a lie. In
his wildly popular presentation, Mike shows why the formula entrepreneurs use to
calculate profit actually inhibits it.

Mike then shares a new approach to profit – taking it first – that instantly changes
everything. With this simple yet profound change, any business, will become instantly
and permanently profitable.

THE PROFIT FIRST FORMULA: The GAAP (Generally Accepted Accounting
Principles) formula for determining a business’s profit is Sales – Expenses = Profit. It is
simple, logical and clear. Unfortunately, it’s a lie. The formula, while logically accurate,
does not account for human behavior. In the GAAP formula profit is a left over, a final
consideration, something that is hopefully a nice surprise at the end of the year. Alas,
the profit is rarely there and the business continues on its check to check survival.

Sales – Expenses = Profit

Sales – Profit = Expenses

With Profit First you to flip the formula to Sales – Profit = Expenses. Logically the math
is the same, but from the stand point of the entrepreneur’s behavior it is radically
different. With Profit First, you take a predetermined percentage of profit from every sale
first, and only the remainder is available for expenses.

Take Aways:
 How to implement Profit First
 How Profit First impacts Parkinson’s Law
 How bank balance accounting works – and why it is logical
 How Profit First works with your existing habits, no big changes needed

Keynote Session