Mike Michalowicz

Mike Michalowicz

"The entrepreneur who nearly lost everything, then flipped the accounting formula to make profit a habit instead of an afterthought."

Mike Michalowicz is an American entrepreneur and author who, after building and selling two companies, turned his focus to helping small business owners escape the cycle of working hard while never quite becoming profitable. His book "Profit First" flips the traditional accounting formula—Sales minus Expenses equals Profit—into Sales minus Profit equals Expenses, forcing business owners to set aside profit before spending on anything else, similar to a personal "pay yourself first" savings strategy applied to a company. Drawing on his own experience nearly losing everything in a failed venture, Michalowicz built "Profit First" around the idea that profitability should be a consistent daily habit rather than an occasional accounting event, and the book has become a widely adopted framework for small business financial management.

1 book featured·Built and sold two companies before writing Profit First·Popularized the Profit First accounting method
Profit First Summary & Review: Take Your Profit Before Paying Bills — Read SummaryBrowse All Books ↓
Mike Michalowicz

Books by Mike Michalowicz

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Key Ideas & Recurring Themes

Sales minus Profit equals Expenses

Michalowicz flips traditional accounting logic, having businesses set aside profit first and then run expenses off what remains, rather than treating profit as a leftover.

Profitability is a habit, not an event

Michalowicz argues that a financially healthy company results from small, consistent financial decisions repeated daily, not a single dramatic turnaround moment.

Cut unprofitable clients to boost real profitability

Removing your worst, least profitable clients—and the hidden costs that come with serving them—often produces a fast, meaningful jump in profitability.

Notable Quotes

"A financially healthy company is a result of a series of small daily financial wins, not one big moment. Profitability isn't an event; it's a habit."
— Profit First
"Profit is not an event. It's a habit."
— Profit First
"Small, repetitive, continuous actions, chained together, build momentous momentum."
— Profit First
"Putting your nose to the grindstone is a really easy way to cover up an unhealthy business."
— Profit First

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Book Author Mike Michalowicz