Quick Book Review:
Profit Flips traditional accounting on its head. Instead of paying expenses first and allocating any remaining dollars to profit, business owners should allocate a percentage of their revenues to profit before a single dollar of expenses has been paid. Profit based on what you can afford today, not where you want to be tomorrow.
Bret's Book Notes:
These are my book notes for the book Profit First. I take bullet point notes while reading, and these are the notes that I have taken.
- The solution is easy, take profits first.
- Profit is not an event that occurs every once in a while; it is something that continually happens.
- Prioritize profits first rather than treating them as an afterthought.
- Regularly allocate a percentage of revenue towards profit before paying any expenses.
- The accounting formula needs to be changed from: sales – expenses = profit to sales – profit = expenses
- Sustained profitability depends on efficiency.
- When profit comes first for a business, it becomes the focus of the business.
- Eliminating unnecessary expenses will bring more health to your business than you know what to do with.