Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

by Mike Michalowicz

Money is made by efficiency—invest in it. If a purchase will bring up your bottom line and create significant efficiency, find ways to cut costs elsewhere, and consider different or discounted equipment (or resources, or services) rather than sacrifice efficiency for what you think are savings.

When you find yourself in a situation where you feel the need to “plow back” your profits, stop to reassess. There is always a better, more sustainable way to maintain the health of your business. You need to invest thought, not reinvest money.

As your profitability grows, your taxes will, too. In fact, paying more taxes is an indicator that your business health is improving. Now, I am not saying you should ever pay more taxes than you need to (tax is just an expense like any other), but do realize that your taxes will grow as your business health does. So don’t steal from your TAX account, thinking you won’t need that money for taxes. You will.