Episode
207
Thu, 01 May 2025 19:00:00 +0000
Running a trades business without profit is like building a house on sand—unstable, stressful, and bound to collapse. In this episode, I talk with Profit First author Mike Michalowicz about how contractors and trades people can finally get their finances in order—and grow without chaos.
1. Profit First Is Not Optional—It’s Foundational
Mike explains that profit isn’t something you “get around to.” It has to come first. Set up a separate profit account. Start small—even 1%—and build from there. It’s not about fancy spreadsheets. It’s about using your natural behavior and building clarity into your money habits.
2. Profit Actually Fuels Growth
Many contractors think they have to reinvest every dollar to grow. But Mike explains how taking your profit first forces smart innovation and lean thinking. He even shares how the Savannah Bananas baseball team used this principle to build a wildly successful brand from day one.
3. Pricing: The Silent Killer of Contractor Profit
Most tradespeople undervalue themselves. Mike urges business owners to believe in their prices—and explains why clients actually want you to be profitable (so you can focus on their job, not your next deposit).
4. From the Brink: A Real Rescue Story
Mike shares a true story of a business that blew a PPP loan, lost money one very job, and was close to shutting down. By implementing Profit First, they became profitable immediately—then tackled their debt head-on.
5. The New Book: The Money Habit
Mike's new book helps individuals apply these same Profit First principles to their personal lives. Whether you’re paying off debt or planning for retirement, his seasonal approach to personal finance meets you where you are.
If you’re living job to job or stressing over deposits, this episode is for you. Take the first step: set up a profit account and start with 1%. Then go listen to the full episode to get the insights and kick in the pants you didn’t know you needed.
More about Mike: LinkedIn | Website | Profit First Professionals
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