Mike Michalowicz's Blog, page 36

Profit First Myth – It Doesn’t Work

We’re doing a series to debunk some of the Profit First myths. Myths are not systems. You can’t have one foot in when implementing Profit First. You need to be all in.

We’ve talked about how some folks think you can simply set it and forget it, using a spreadsheet to manage your accounts, and how that is not a sustainable system. Here’s another myth: Profit First doesn’t work. Now, while I haven’t heard this a lot, there are some naysayers who feel this way.

To them, I ask, have you done it?

When someone says something doesn’t work, I ask them what their experience has been when they implemented it. Not because I am challenging them, but because I want to learn from their experience and improve upon my own systems to better serve others.The thing is, I haven’t met anyone who fully implemented Profit First and failed.

When I became an author, a few people approached me and told me I would never make any money from selling books. Most of those folks didn’t have the relevant experience to draw on, so that insight was, well, irrelevant. Had I listened to them and given up on my dream of writing, I wouldn’t be an author. And I would have given up on my dream of helping to eradicate entrepreneurial poverty.

Remember, naysayers aren’t usually the doers. If you have questions about implementing Profit First, click here for resources and contacts to make sure you’re on the right track.

I am wishing you tremendous success!

-Mike

PS – We’ve got some powerful courses for you so you can permanently implement change and make your business unstoppable. Check them out here.

PSS Like free stuff? Check out the free resources

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Don’t Burn Out! Recharge

Entrepreneur and best selling author, Kate Northrup, says it best -”Body before business.”

Sit with that for a minute.

How many of you business owners sacrifice “you time” for your business? Show of hands? That’s what a thought, the whole dang class. But does that sacrifice really serve your business, clients, employees, family, and oh – you?

You know the answer.

To know me is to know I carve time out to recharge and for my physical and mental well being. It’s not because I’m selfish. It’s because in order to be selfLESS, I need to be able to manage stress and be healthy, not someone dragging my leg over the finish line because I’m not taking care of myself.

Sacrificing for your business to the point of burnout doesn’t make you a hero and it certainly doesn’t make you a good leader. You became an entrepreneur because you wanted to serve the world in some capacity. As wonderful as that is, it can still be stressful. To be productive to serve efficiently, you have to be healthy in body and mind.

Recharge.

Business owners are the worst when it comes to taking time to recharge. Your company isn’t going to implode in the space you create to catch your breath. You can’t pour from an empty cup and you need to deliver the best of you. A rejuvenated you will only invigorate your company.

So whether it’s in your storage room massage chair (see scary video above), a walk through the woods, meditation, reading a book, sleep, or time with a loved one, promise me now that you will take time today to recharge and hit that reset button. Then, and only then, will you be clear for take off.

What’s your favorite way to recharge? Do it today!

Wishing you health and wealth,

Mike

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Mike’s Likes – The Importance of a Name & Books by John Jantsch & Chris Ducker

Me again. Time to share some of my favorite things to help you elevate your business. Let’s go!

Dale Carnegie said, “A person’s name is to him or her the sweetest and most important sound in any language.”

I took this to heart and implemented it in my life. One impactful way that I do this is by displaying names of those I have Zoom calls with or make videos for. A simple, thoughtful act like personalization can nurture any relationship. You can get these letter blocks that I use right on Etsy. Easy win!

Now let’s talk about some of my very favorite reads!

If you’re a marketer (and we ALL are!), John Jantsch’s SEO for Growth is a cannot miss. It is a super simple, but effective guide. It will help you grow your online presence and get you those Google first page ratings. Business owners have their staff reading this book so they can implement the best practices in SEO strategies and avoid any unnecessary road blocks, so get on board! “SEO is all about catching buyers when they are already in the purchase process,” ― John Jantsch. Good point. So get that attention by making sure your SEO practices are up to date!

Another book I’m loving is Chris Ducker’s Rise of the Youpreneur. Chris gives a definitive roadmap to creating your personal brand. It will take you step by step, from building your brand, to marketing, to monetizing it. What I especially love about this book, is Chris’ integrity. He says, “Relationships should be treasured, not used.” – I could not agree more. It’s a book you can use to elevate your business – and feel good about.

Check out John and Chris’ books and let me know what you think! I know they will serve you.

Wishing you health and wealth,

Mike

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Get Unstuck in Your Business

Owning a business means you have big fish to fry. When you feel overwhelmed by something you can easily get stuck. Stuck won’t get you anywhere, my friend. Do you have the tools in place to ensure you will accomplish those daily goals?

Maybe you think that I tell myself, “You’ve got this!”, over and over, but affirmations aren’t always the key. From one entrepreneur to another, here’s my unsolicited advice:

Break it down! (Pan to a bad rendition of an 80’s dance video with the outfit to match) First you need to ask yourself how you will accomplish your goal. What do you need to do to make it happen? Create a small list or action plan, even if it has small, simple steps. Here are some questions I ask myself when I reach a 10 foot hurdle.

What’s holding you back?
If you can identify what exactly is weighing you down from soaring over your hurdle, you’ll have a far better chance of eliminating it.

Are you putting your energy in the right place?
What are your priorities? Are you going for the low hanging fruit or the big kahuna? Which is more pressing, more important for moving your business forward now?

Clean.
What, now? Clean? Yes. If your space is cluttered, your mind will be too. I like to make sure I have a clear workspace. Less distractions, less pressure. This goes for your computer too. Clear out your drive, unsubscribe to lists that don’t serve you (I mean, not mine of course!) and open up space for yourself to ideate, create and accomplish.

Make time.
We talk a lot about work/life balance, but you need balance in work, too. Time management is key. Most of us in my office time block all of our tasks. Time blocking allows you to focus on one thing at a time. Again, no distractions!

Above all, keep moving forward.
Never stop moving. Even if you are taking the smallest steps, you will see how they add up for those long term results you need to move you, and your business forward

So, how are you going to tackle that one big thing today?

-Mike

PS – We’ve got some powerful courses for you so you can permanently implement change and make your business unstoppable. Check them out here.

PSS – Like free stuff? Check out the free resources

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Another Profit First Testimonial

We love sharing testimonials from fellow entrepreneurs.

Check out this video from Adam McKee, of Contemporary Woods. He implemented Profit First about a year and a half ago, and we are so proud of the transformation that took place in his business.

Adam describes how for years, he’s accrued debt, or had to borrow money to keep his business moving forward. This is an all too common theme for so many business owners. All he needed was a simple, counterintuitive cash management system.

It all started with that 1%. Adam began saving 1% into his profit account and 2% into his tax account. One year later, he was able to pay off a three year tax debt, and take his first profit in eight years!

Profit First moved Adam’s business forward. He’s gained a sense of empowerment and peace because he has an in-depth understanding of all financial aspects of his business. Now, Adam has a plan in place to pay all expenses, and take profit.

While Profit First has been implemented in Adam’s business, he realizes this isn’t the end of his profit journey. These new habits need to continue into perpetuity to sustain a healthy, long lasting business. We’re so excited to see what’s next for Adam!

Here’s to your profit!

-Mike

PS – We’ve got some powerful courses for you so you can permanently implement change and make your business unstoppable. Check them out here.

PSS – Like free stuff? Check out the free resources

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Mike’s Likes – Caffeine, Ben Franklin and The War of Art

 
Ok, quick poll: Caffienated or noncaffeinated? Check out this video for my shocking reveal! (cue mysterious music)

Are you a “creative”? You don’t necessarily have to be in the arts. If you’re a business owner, you are, indeed, a creative. You create systems, culture, platforms, and well, a whole dang company! Here are two of many books that have supported me in creating my business and my writing journey.

The Poor Richard’s Almanac, by Benjamin Franklin, is an oldie but goodie. It’s a book of truisms I received years ago. For a quick trip back in time, this is straight out of the original 18th century publication. It holds wisdom that Franklin took from others and put together to motivate the everyman philosopher.

If you want some insight into pushing past roadblocks when you’re trying to create something, The War of Art, by Steven Pressfield, gets my vote. It’s one of the first resources that really pushed me past my hurdles and gave clarity when I began writing. Pressfield inspired me to give it my absolute all, and truly fulfill my potential as a writer. It will help you push past whatever is standing in your way, so you stop procrastinating and start creating!

That’s it for now! Be well – and be inspired!

-Mike

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3 Simple Marketing Steps to Get Different and Get Noticed

If you want awesome marketing, you need to stand out. If you don’t, you’re going to lose opportunities.

Building my first two businesses taught me that the only way to get in front of the people who need you is to master marketing, and that has nothing to do with mastering an actual marketing plan. Any marketing plan is just fiction if you can’t get prospects’ attention in the first place.

Our own fear of standing out is the number one reason why we struggle to get noticed. People lose the game of marketing because they play by the rules—rules that don’t even exist.

If you’re looking to nail your marketing strategies, It’s simple, you must be different. Human minds are designed to ignore what’s common, to filter out the static. It’s not a new phenomenon. It dates back to the evolution of man. It’s wired into our mind. The hunter mind was efficiently designed to filter out all of the common noise in order to notice the thing that stood out that could serve them. While we have certainly evolved since then, we still operate this way.

When your audience sees your marketing, they’re going through these mental calculations within seconds:
Block out the common noise
Does this serve me now?
Should I take action?

For your marketing to be successful, your prospects need to be guided fast. According to Time Magazine, the average website holds visitors’ attention for a mere fifteen seconds. Instagram reports people spend less than ten seconds on a post. And what about more tactile marketing? I’ll bet you riffle through your junk mail at warp speed.

If you market just like everyone else, you will just be white noise. In response to this, I developed The DAD Method. It’s a fast, 3 step process to get noticed and move your prospects to take action immediately.

Profit First is a cash management tool that works with our natural behavior. You constantly check your bank accounts, right? With Profit First, you pre allocate money for its intended use. So now when you log into your bank account, you clearly see what the money’s use is specifically for.

1. Differentiate – Get different to get noticed
This first step in the framework is to identify a marketing approach that stands out in a sea of sameness. What will make your prospect’s minds stop and pay attention? How can you engage them during the marketing milliseconds?

One place to begin is whatever idea you have, elevate it. If you are sending something, be it swag or a digital download, call it something clever that stands out, and represents you at the same time. For instance, if you were sending a hat, you could call it a thinking cap. Little moves like this make you stand out from the rest.

Getting different starts at the micro level. You don’t have to come up with a huge, time consuming marketing plan right off the bat. Make small changes to logos, copy, ads, and videos. Use those as a beta test to see what’s converting for you.

2. ATTRACT – In a way that attracts your ideal prospects
Next, ensure that your approach will appeal to the people you want to serve, not turn them off. How will you establish your marketing as an opportunity they will consider, instead of a threat they will avoid? Make how you are attracting works for who your community is.

3.DIRECT – Illustrate a clear message of what action you want your prospects to take
Finally, your strategy must compel your ideal prospects to take a specific action you desire. Now that you have the prospect’s attention and they are engaged, you need to tell them what the heck to do. Marketing guru Jeff Walker says that marketing is every step you take to get the customer to the buying decision, and the sale is the final action on their decision to buy. So your clear, singular directive should get them to the next step.

Does the prospect see the reward of doing what you ask as greater than the risk of taking that action? And will their compliance with your directive help you achieve your marketing goals? Forgetting to include a specific call to action is one of the most common marketing mistakes I’ve seen (and done). Along with being specific, the Direct step must be reasonable. Maybe my marketing win is to sell you a house, but, once I have your attention, I wouldn’t immediately ask you to plop down a million bucks on the spot. It’s way too much, way too soon, and unreasonable. An excessive ask will cause prospects to walk (or run) away. Conversely, inadequate asks will slow down (or stop) any progress toward the outcome you want. Once I catch your attention with uniqueness and maintain it with relevance, the Direct step must be specific so you know what to do, and reasonable, so you feel safe doing it and you move efficiently toward your goal.

To sum up the DAD: Get different to get noticed in a way that attracts your ideal prospects and directs them to act. That’s it. That’s the framework. It’s simple, yet powerful. When you follow it, you will land new prospects. Every. Single. Time.

Better isn’t better, different is better. So get different.

-Mike

PS – We’ve got some powerful courses for you so you can permanently implement change and make your business unstoppable. Check them out here.

PSS Like free stuff? Check out the free resources

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A Profit First Myth -Spreadsheets

There are a lot of myths around Profit First. Some folks like to say you don’t need the five foundational accounts, that no bank will open such accounts, that no accountant will get on board, that you can manage your business using traditional accounting, or that spreadsheets are all you need.

I’m not here to hurt your feelings, but you’re doing it wrong (pan to Michael Keaton in the drop off line in Mr. Mom).

During the course of this pandemic, countless business owners have told me that if not for implementing Profit First, their businesses would never have survived. The system is easy, and can sustain your business. Folks have told me they had no cash flow for months, or had family members who were ill, and their businesses are still profitable; they are still here.

Circumstances are going to arise, and the best way to prepare your business is by using Profit First. When I see what critics are writing, one of the biggest myths they pontificate is that you can do Profit First by simply using a spreadsheet.

Profit First is a habit. “If you always do what you’ve always done, you’ll always get what you always got.” – Henry Ford

Let’s debunk the spreadsheet myth for good, because when your spreadsheet fails, and it will, it’s because Profit First is more than a spreadsheet. Profit First is a habit. If you follow the system beyond setting up accounts, you will see that the financial habitual behaviors that you have cycled through over and over in the past that have gotten you, you guessed it, the same results, over and over again.

When you understand the behavior intercepts and how they work in your business, you will have a whole new appreciation for what Profit First will do for you.

Profit First is a cash management tool that works with our natural behavior. You constantly check your bank accounts, right? With Profit First, you pre allocate money for its intended use. So now when you log into your bank account, you clearly see what the money’s use is specifically for.

For years business owners were told not to log into our bank accounts, to check income statements, log into your accounting system, reconcile income statements and balance sheets. You want to stay up to date with your fluctuating operating cash ratio, your inventory return, you name it. If you consistently do these things, you will manage your business well. It’s true.

But.

Do you do all of these things on a daily basis? It’s just not realistic.

The key is not to change you or your behavior, but where you channel those behaviors. Start with opening your Profit First accounts at your bank. Check out these first steps. And don’t be intimidated. Banks and accountants are catching on too.

Here’s to your good habits! And here’s to your profit!

-Mike

PS – We’ve got some powerful courses for you so you can permanently implement change and make your business unstoppable. Check them out here.

PSS Like free stuff? Check out the free resources

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Mike’s Likes – Dreams and Success

 

It’s time for a few of my favorite things. Let’s go!

Lighting doesn’t have to be boring. Check out a new way I’m upgrading my office in this video. (Welcome to the disco! It even has a remote. Come on!) Onward to my book collection.

One of the books that has transformed the way I approach my business is The Dream Manager, By Matthew Kelly. It’s not the business goals that matter, but those of my employees. Now I know that by aligning my business goals to theirs, my business will flourish.
“The Dream Manager emphasizes that a key and critical role of leadership is the ability to recognize the dreams of those that we lead and inspire them to achieve those visions . . . I believe Matthew Kelly’s new book will be an important contribution to the literature of leadership.” — Robert A. McDonald, Chief Operating Officer, Procter & Gamble

My friend John Lee Dumas wrote this amazing book, The Common Path to Uncommon Success. Get ready for truth bombs, it really an entrepreneur’s roadmap to what we all want – uncommon success. I’m so excited for you to read this.
“We all want uncommon success, and John Lee Dumas shows you how to attain it. Drawing on lessons he learned building a multimillion-dollar business from scratch, you’ll learn the simple, smart moves you can make to get exponential results.” -1 Dorie Clark, Author, Entrepreneurial You, Executive Education Faculty, Duke University Fuqua School of Business

That’s it for now! Be well – and go for those dreams and success you envision!

-Mike

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Mike’s Likes – All About Profits

 

I like a lot of things. Including the internet. And while I know technology will inevitably break down from time to time, we rely so heavily on the internet it’s hard to be patient. (Tap, tap, tap)

Since I was temporarily sent back to days of yore, I thought I’d share an artifact related to the history of my business. Remember typewriters? Before computers, or word processors (man, remember those?) you either put pen to paper or types to get rewarded by a high pitched “ding!’ at the end of each line. I have been using this old typewriter as a touchstone. It’s a place I can write my intentions, providing a convenient and nostalgic visual to revisit my purpose.

Onward to books. A couple of my latest favorites are about concepts and systems around profit. Out of the many lessons learned through the pandemic, the one that some learned the hard way is that if we want our businesses to thrive, healthy profits are crucial to the survival of your business.

If you want an extraordinary complement to Profit First check out my friend Femke Hogema recently released Profitable Plans – Seven Steps to a Financially Successful Business. It is a go to if you want an action plan to create profit. It’s getting top reviews too:
“Permanent profitability is attained when mindset, aligned business model and a clear vision are married together. Femke Hogema nails this trifecta in Profitable Plans with the perfect balance of entertaining stories, strategy and clear actions steps.”

Another excellent guide for profit? Your Path to Profits, written by another friend, Diane Gardner, is a wonderful how-to guide to learn how to boost your company’s profit. It’s easy to read, and also maps out steps to follow so you can create profit in your business.

Some have thought the word “profit” is a synonym for greed. Nothing could be further from the truth. Remember, profit isn’t getting over, or what’s leftover. Profit is crucial, especially for your small business. If you can’t turn a profit, you can’t interest investors, secure financing or grow your business. Be intentional about adopting systems to create profit and create a sustainable business for life.

Be well – and profitable!

-Mike

PS – I invite you to get in on the courses I have created for you to help you reach your potential, and more.

Uncover your confidence (get that mindset in check!)

PSS – Get the free resources for Profit First. From a Profit First One Sheet to finding banks to open your accounts in, it’s there waiting for you!

Check out the free resources

Remember – Profit is not an event. Profit is a habit!

Join the journey More Mike on Instagram

Check out our fresh new podcast! Mike Up In Your Business

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