ENTREPRENEUR BIZ TIPS: "Profit first" is better for entrepreneurs than "G.A.A.P." | Mike Michalowicz | TEDxFultonStreet
ENTREPRENEUR BIZ TIPS: "Profit first" is better for entrepreneurs than "G.A.A.P." | Mike Michalowicz | TEDxFultonStreet
Here’s Great Tip: "Profit first" is better for entrepreneurs than "G.A.A.P." | Mike Michalowicz | TEDxFultonStreet
Here is Something You Should See…
This talk was given at a local TEDx event, produced independently of the TED Conferences. Mike explains how he made over a million dollars and then lost it, from a form of bad thinking pervasive among small business owners. “Generally Accepted Accounting Principles”, a.k.a. “GAAP”, describe profit as ‘what remains after expenses are subtracted from revenue’. A simple transposition, Mike suggests, extracting an owner’s profit before paying expenses, can help entrepreneurs to avoid making the same mistakes.
Mike Michalowicz (pronounced mi-’kal-ō-wits) started his first business at the age of 24, moving his young family to the only safe place he could afford – a retirement building. With no experience, no contacts and no savings he systematically bootstrapped a multi-million dollar business. Then he did it again. And again.
Now he is doing it for other entrepreneurs. Mike is the CEO of Provendus Group, a consulting firm that ignites explosive growth in companies that have plateaued; is a former small business columnist for The Wall Street Journal; is MSNBC’s business make-over expert; is a keynote speaker on entrepreneurship; and is the author of the cult classic book, The Toilet Paper Entrepreneur. His newest book, The Pumpkin Plan has already been called “the next E-myth!”
About TEDx, x = independently organized event In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks video and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event. The TED Conference provides general guidance for the TEDx program, but individual TEDx events are self-organized.* (*Subject to certain rules and regulations)
GAAP is a set of principles which companies (for the most part) follow when performing accounting for preparing their financial statements. It establishes consistency for readers of financial statements. It's not a formula. Further, taking profit before paying expenses make no sense. Gaining financial literacy before embarking on business is always a good idea. That and having good advice.
Great talk, but what that was actually all about is Income-Savings=Expenses. I don’t think it has anything to do about the GAAP. Expenses comes first if you want some sales, correct me if I’m wrong, that’s why the Sales-Expenses=Profit is the GAAP formula.
Great accounting talk. With all due respect though, The earth is flat. We did not go to the moon. We are the center of the universe. I'm just saying. Great talk though.
Estou lendo o livro Profit First, e fazendo uma busca, cheguei neste vídeo. Acredito que o autor não tenha conseguido, em poucos minutos, explorar o conceito poderoso que está atrás do Profit First. Recomendo a leitura do livro. A palestra foi fraca.
20 Replies to “ENTREPRENEUR BIZ TIPS: "Profit first" is better for entrepreneurs than "G.A.A.P." | Mike Michalowicz | TEDxFultonStreet”
what account does the money for your expenses get put into?
This should have alot more views. Just read the book
Hmm. What if sales change from month to month some businesses are seasonal? Some cost of goods sold go up as you increase sales.
GAAP is a set of principles which companies (for the most part) follow when performing accounting for preparing their financial statements. It establishes consistency for readers of financial statements. It's not a formula. Further, taking profit before paying expenses make no sense. Gaining financial literacy before embarking on business is always a good idea. That and having good advice.
Love this! And the best part is that this principle not only holds for profit in terms of money but as profit as satisfaction, in general.
I need to re-read this book! Thanks, Mike!
Thats how literally everyone does business. Isn't it?
Great talk, but what that was actually all about is Income-Savings=Expenses. I don’t think it has anything to do about the GAAP. Expenses comes first if you want some sales, correct me if I’m wrong, that’s why the Sales-Expenses=Profit is the GAAP formula.
Love this book, Mike is fantastic!! Thanks for the inspiration!
Great video! P90X works tho
this is always my formula in my life! take what you want and spend the leftover.
I didn't get it. How can I take profit before I even make a sale? Where is the profit coming from?
Makes a lot of sense. Will try that in my next venture. Thanks for your time.
Wow Steve from Blues Clues turned into a savage businessman
Great book, not that good presentation
Great accounting talk. With all due respect though, The earth is flat. We did not go to the moon. We are the center of the universe. I'm just saying. Great talk though.
This is exactly like pay yourself first methodology. Gotta pay yourself first OR big corporations will jack your dough away instantly
Simple and effective! And easy to remember .
Only 7.5k views and 2 comments??
Estou lendo o livro Profit First, e fazendo uma busca, cheguei neste vídeo.
Acredito que o autor não tenha conseguido, em poucos minutos, explorar o conceito poderoso que está atrás do Profit First. Recomendo a leitura do livro. A palestra foi fraca.