Page 7 - ISI Directory April 1 Update

MAY
{Theme} Building a J-O-B or B-I-Z
BOOK OF THE MONTH
Profit First by Mike Michalowicz
WEEK OF APRIL 30
READ CHAPTERS 1 to 3, Pages 1 to 58
#1”Accountants define profit differently than entrepreneurs. They point to a fictitious number at the bottom of an accounting report. Our definition of profit is simple: cash in the bank.” Do you see a difference between cash in the bank vs. your Net Income number on your Profit & Loss statement?
#2 Have you set up your initial 5 Bank Accounts? Are you putting at least 1% of your Income in your Profit Account? If not, what is stopping you? Could you push it higher?
#3 Have you set a schedule (like the 10/25 model) to transfer money from the All Income account to your other accounts by their defined percentages?
WEEK OF MAY 7
READ CHAPTERS 4 to 6, Pages 69 to 113
#1 Mike recommends processing your business AS you are building “you are a true entrepreneur (building systems) 10 percent of the time, and a hardworking, hard-selling employee of your own company 90 percent of the time.” What excuse are you making that is keeping you from building systems and processes?
#2 Sometimes the business (through the numbers) will speak to you and tell you it’s time to cut expenses. Are there any frivo- lous expenses you could cut right now?
#3 Would you define Profit any differently that the author does? “PROFIT account serves a few purposes: Monetary reward for the equity owners of the business. A metric to measure growth. Cash reserve for emergencies...”
WEEK OF MAY 14
READ CHAPTERS 7 to 8, Pages 114 to 147
#1 OUCH! “profit distribution can never go back to the company.You can’t use fancy terms like reinvest, plowback, or profit retention. No term you use will cover up the fact that you are stealing from Peter to pay Paul.” After reading this, are you running a truly profitable business?
#2 “If you have debt, be it one thousand, one million or some- where in between, you need to kill that debt once and for all while still slowly and methodically building profit.” What debt is hanging over you that you need to get rid of?
#3 “Often the most underutilized employee in an overstaffed company is you, the owner.” Do you feel overstaffed or under- staffed?
WEEK OF MAY 21
READ CHAPTERS 9 to 10 - Pages 148 to 176
#1 “When in doubt add an account.”” Are there any addition- al accounts you need to add? Travel? Wedding? College? Cost Of Goods?
#2 “Raising money is a risky endeavor. I generally discour- age it, unless you have an extremely high confidence that an investment of money will bring in a lot more profit.” Do you feel like you HAVE to raise outside money? Is there another way?
#3 “Well-dressed poverty is still poverty.” Are you living a life of well-dressed poverty?
WEEK OF MAY 28
READ CHAPTER 11 Pages 177 to 208
#1The PF model prioritizes setting aside your Taxes today... Why do we naturally resist/ignore taxes and put off to tomor- row what we know is required today? What do you need to do right now to get “right” with your taxes?
#2 How can you apply the Profit First model and percentages to your personal finances?
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