- January 3, 2022
- Posted by: hpiadmin
- Categories: Entrepreneur, Monday Message
Monday Message from Jerry Houston, President and CEO of HPISolutions
I am quickly becoming a fan of Mike Michalowicz, author of PROFIT FIRST, and also bestsellers, The Pumpkin Plan and The Toilet Paper Entrepreneur.
In his book, PROFIT FIRST, Mike points out that the old way of thinking by entrepreneurs is that you pay everything else first, and then take remaining cash and profits and roll it back into the business as retained earnings… he claims that is all wrong. Instead, Michalowicz insists that you take some portion of your business profits each quarter or month and set it aside as profit dollars for your use as an owner. Whether you invest those funds, pay money out to your personal income, or save those funds to build up your net worth or the value of your business, you are much more likely going to get to the end of your career and have an established value to supplement your retirement.
Michalowicz says this about MONEY PROBLEMS:
“You have probably put a lot of work into growing your business. You are probably good or great at that part. That’s awesome. And that’s surely half of the equation. But colossal growth without financial health will still kill your company. Money is the foundation. Without enough money, we cannot take our message, our products, or our services around the world. Without enough money, we are slaves to the businesses we launched. I think this is hilarious because, in large part, we started our businesses because we want to be free.”
Want to know more? Go onto Amazon.com and look for the book, Profit First by Mike Michalowicz. It will be a worthwhile read.
Happy New Year!