Plan for profit from the start from "summary" of Profit First by Mike Michalowicz
To truly maximize profitability in your business, you must plan for profit from the very beginning. This means that even before you start generating revenue, you need to allocate a portion of that revenue towards profit. It may seem counterintuitive to set aside profit before paying expenses, but this approach is essential for long-term financial success. By prioritizing profit from the start, you ensure that your business remains sustainable and profitable over time. This strategy forces you to focus on generating enough revenue to cover expenses while still allowing for profit. It also helps you avoid the common pitfall of neglecting profit in favor of other expenses. Planning for profit from the start also helps you develop a healthy financial mindset. Instead of viewing profit as an afterthought, you treat it as a non-negotiable part of your business strategy. This mindset shift can have a significant impact on your financial decision-making process and ultimately lead to greater profitability. Incorporating profit into your financial planning from the beginning also sets a positive precedent for your business. It sends a clear message that profit is a priority, not an afterthought. This can help you attract investors, secure loans, and build a strong financial foundation for your business.- Planning for profit from the start is about setting your business up for long-term success. By making profit a priority from day one, you create a solid financial framework that can support your business growth and sustainability. So, don't wait until you're making a profit to prioritize profit – start planning for it from the very beginning.
