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)

20 Replies to “ENTREPRENEUR BIZ TIPS: "Profit first" is better for entrepreneurs than "G.A.A.P." | Mike Michalowicz | TEDxFultonStreet”

  1. 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.

  2. 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.

  3. 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.

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