Profit First Book by Mike Michalowicz- Experience?

Question

Good afternoon,

I've been reading Profit First by Mike Michalowicz and am going to set up the system just like the book tells you to do. I was wondering if anyone of you have tried this and how has it treated you? How was the set up process for you? I know it will definitely help my business finances.

Look forward to hearing from a few people hopefully.

Rocky Lalvani · Answer

One of the best ways to use Profit First with rentals is to set up separate accounts for vacancy / turnover costs, repairs and major upgrades. By saving a small % each month for these costs you have the money to pay them when they come up. It won't mess with your cashflow and smooths everything out. When it's time for a new roof you already have the money set aside to pay for it.

Carson Fox · Answer

@Jessica Muto

It has been going great and I REALLY like it. I have been following it and it really helps with not over spending in the business. You HAVE to pay yourself. I wouldn't do it any other way honestly.

J Scott · Answer

Btw, we had the author of this book (Mike Michaelowicz) on the BiggerPocket Business Podcast a few week ago, talking about this very topic!

https://www.biggerpockets.com/...

Carson Fox · Answer

@Jessica Muto

Get a GREAT mentor and do everything they tell you.

@Chuck Dangar Talk to your local bank and get it waved. If they won't do it another bank will.

Ashish Acharya · Answer

Yes, I have read it and know people who have benefited from it.

I personally think it is helpful for a person that is having trouble tracking their finances.

If you are good at your numbers and are setting aside tax and making regular estimated payments, you should be good.

And also, if comes down to discipline, he is trying to make it difficult for you to access money if you ever wanted to spend it. If you are disciplined, you really don’t have to follow that.

Other than that, everything he says should be done by your bookkeeper, if  you are not at that’s Level to have a bookkeeper, following what he says will helps.

Good luck.

Carrie Foley · Answer

I'm using this method and love it. I have questions for anyone that is a pro. I've only been doing it for a few months.

I want to suggest that anyone getting into it for the first time, they look up Relay and use them as their bank.

Dan Tsunekawa · Answer

I’m also curious how this works with rentals. Like what is considered revenue? Is it rent? Noi? Cashflow? How does it work with expenses like leverage?

It also sounds like lots of moving parts as you scale to a number of doors.

If anyone is doing this strategy and happy with it I’d love to connect.

Jessica Muto · Answer

@Carson Fox That's awesome to hear! Our plumbing company is at that growth stage where it feels like we are spending money almost faster than we can make it, and I know there is a better way to manage the cash flow. And since we are JUST starting the real estate investing arm of our business, I want to start that the right way. Any tips or tricks related to real estate specifically?

Thanks!!

Chuck Dangar · Answer

I'm in the same situation where my business bank account has a $500 min.  How did you end up getting around that? @Carson Fox

Jessica Muto · Answer

Hello,

I just started reading this book and feel like it may be the strategy we need to finally get ahead. Man, it is expensive to be successful, that's for sure.

I'm curious how it's been going for you @Carson Fox over the past few months, what you like about it or don't, if it's still working, or if you gave up on it and why. If you don't mind an update, I would appreciate it!

Thanks!

Profit First Book by Mike Michalowicz- Experience?

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