Anytime someone asks Erik what his favorite business book is, he almost always says Profit First. It’s written by Mike Michalowicz and it’s a fantastic book that Erik can’t stop talking about that’s completely transformed his relationship with the funds in the company.
Before reading this book, the company had one bank account called Operating Expenses and everything went in and out of there: all the revenue went in and all the funds for operating expenses came out of there. Erik and Kevin always felt weird about taking the profit out of there at the end of the quarter because they had no idea what that money represented or what ticking time bombs were out there where money was owed.
Well, after implementing Profit First, they were no longer scared. As an entrepreneur, you are naturally inclined to not pay that much attention to your accounting reports because they’re frankly not reality. What really matters is how much money is in your bank account at the end of the day. This book says that this is our natural tendency so you should create more accounts based on how it’s going to be used.
If you’re having money issues or concerns, take a look at Profit First.
Erik J. Olson is an award-winning digital marketer & entrepreneur. The Founder & CEO of Array Digital, he is also the host of the Journey to $100 Million Flash Briefing and daily podcast, and the organizer of the Marketers Anonymous monthly meetups.
Kevin Daisey is an award-winning digital marketer & entrepreneur. He started his first company when he was just 23, and is the Founder & CMO of Array Digital. Kevin is the also the co-host of the Journey to $100 Million Flash Briefing and daily podcast, and the co-organizer of the Marketers Anonymous monthly meetups.