Profit First by Mike Michalowicz

Are you a member of the construction industry?  If so, this is a book you must read.  Actually, if you're an owner of any kind of small business, this book has many tips that will help you to make a profit.  The tips will help you make your business a money-making monster. 

Most people today believe if you deduct your expenses from your sales, you have a profit.  However, Mike Michalowicz points out in his book that thinking that will only lead to a smaller profit.  If you want a large profit, you must use the profit first method.     

Reduce Your Operating Costs

All too often, we think our expenses such as salaries, materials, and utilities are unavoidable.  However, that kind of thinking will only lead to a smaller profit.  If we set aside a percentage of our profit first and limit our expenses, our profit will automatically be larger. 

If you reduce your operating costs, your goal of a bigger profit will become possible.  By reducing your operating costs, you will accumulate more money.  The idea is to earn more money every year than you spend.  

How to Reduce Your Operating Costs

·       Shop for the best price for materials.

·       If you can buy something cheaper by buying used, buy used.

·       Negotiate prices whenever possible.

·       Avoid major purchases whenever possible.

·       Seek free options when possible.

·       Market on the internet.

·       Limit landline phone use.

·       Take advantage of tax write-offs.

·       Save electricity when possible.

·       Go paperless.

·       Outsource some business necessities.

·       Use technology to be more efficient.