What is the Profit First System?

Profit First is a book written by Mike Michalowicz that presents a system for small business owners to prioritize profitability in their financial management. The core idea behind the system is to establish a simple and straightforward framework for managing cash flow, where a portion of each sale is set aside as profit before paying any expenses.

The system involves dividing a company’s cash into several different accounts, including a profit account, an operating account, a tax account, and others. The business owner then manages these accounts in a way that ensures that a portion of every sale is automatically set aside for profit before any other expenses are paid. The goal is to help business owners develop a healthy and sustainable relationship with money, and to ensure that the business is financially stable and profitable over the long term.

The Profit First system has received positive reviews from many business owners and has been praised for its simplicity and effectiveness in improving financial stability and profitability.