Episode 13: Profit First in Private Practice (with Mike Michalowicz)

"Every time revenue comes into your practice, you subtract a predetermined amount as profit, and you run your business on the remainder" - Mike Michalowicz

The Profit First methodology has transformed thousands of struggling businesses into money making machines! If you're interested in implementing Profit First into your private practice, today's episode is made for you.

Register for our FREE Live Profit First Webinar on Dec. 18th, at 1 PM EST - CLICK HERE!

This week, Julie sits down with the genius behind Profit First, Mike Michalowicz. Mike is a successful business owner, author, and keynote speaker. He has founded two multi-million dollar businesses where he researches and develops his methods for increasing profitability, automating systems, and prioritizing problems.

Episode Highlights:

• Basic Principle of Profit First: Sales - Profit = Expenses
• The 5 Bank Accounts:
  • Income
  • Profit
  • Taxes
  • Operating Expenses
  • Owner's Draw/Payroll
• Transfer Schedule: Profit First recommends completing transfers every two weeks
• CAPS: Current Allocation Percentages
• TAPS: Target Allocation Percentages
• Do More With Less: Your business will tell you what is financially available to operate
• Parkinson's Law: Our demand for a resource increases to meet the supply of the resource. It can also mean that our work expands to fill the allotted given time for completion.
• Start Slow & Let It Grow: Profit First is a behavioral system. You must ease yourself into the process for it to be successful. Start with a low profit percentage and increase over time.
• Behavioral Intercept: The system needs to be set up naturally in order to make it for your patterns/schedule

Links and Resources:
Mike Michalowicz
Profit First - Website
Profit First - Book
Clockwork
The Pumpkin Plan
Fix This Next
Influence: The Psychology of Persuasion
10-10-10: A Transforming Idea
Rejection Proof
GreenOak Accounting
Therapy For Your Money Podcast