This is essential listening for small business owners or those considering making that leap in the next few years.
It discusses the idea of using the principle of focussing your attention on what is important, namely profit, rather than the traditional accounting system which focusses on revenue and expenses meaning for many businesses profit is an afterthought that never really materialises.
In short you set up multiple accounts and twice every month move money from your "income" account to others called operating expenses, tax, owners compensation and profit at specific percentages which over time you shift up or down to slowly get to a better position in which your business is able to run efficiently at minimal expense and building up both decent cash reserves and profit for yourself. Although the concept is fairly simple, the intricacies take a long time to explain in detail. I would strongly recommend everyone either reads of listens to this book.
I like the way this audiobook has been presented. The author (Mike Michalowicz) is clearly very passionate about it. While recording the audiobook he often expands on the material within the book telling personal anecdotes to elaborate on the material. In many ways he reminds of Gary Vaynerchuk but a bit less sweary and a bit more focussed in his presentation.
I am definitely going to give the material in the book a lot of careful thought. I have never been very good with my finances and I think it is possible that a system like this really could help manage my current financial situation as an associate or in the future when I set up my own business.
If you would like to see which other books I call essential reading please go here: