There's a lot of pundits who say that entrepreneurship is about the hustle and grind. We’re supposed to work harder and harder and sacrifice our lives for the sake of the business.
But Mike Michalowicz argues that entrepreneurship is not about doing the job. It’s about creating jobs.
So, how do you remove yourself from the day-to-day operation of your business? Can you get to a point where your syndication firm runs itself?
Mike Michalowicz is a well-known keynote speaker and bestselling author on a mission to eradicate entrepreneurial poverty.
Mike has built four multimillion-dollar companies and exited two. But he has also launched ten failed businesses and lost his fortune twice.
And it is those struggles that inspired Mike to serve other entrepreneurs through books like Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine and Clockwork: Design Your Business to Run Itself.
On this episode of Financial Freedom with Real Estate Investing, Mike joins Garrett and me to discuss the premise of Profit First, describing how to prioritize profit by treating it like a business expense.
Mike challenges us to overcome superhero syndrome and take on the role of supervisionary in our business, building a team to handle the day-to-day while we think strategically about growing the company.
Listen in for Mike’s surprising advice on planning a four-week vacation that forces you to put systems in place and empower your people to run the business without you!
Mike’s background as an entrepreneur
- Started acting like ‘total tool’ after 2 successful exits
- Tried angel investing and lost everything in 2 years
- Studies what systems make entrepreneurs successful
The premise of Mike’s book Profit First
- Most entrepreneurs prioritize expenses, not profit
- Subtract profit goal from revenue (pay yourself first)
- What’s left available to cover expenses
How Mike applies Parkinson’s Law in business
- As supply increases, we inevitably consume more
- Revenue and expenses tend to grow at same rate
Why you should put LESS money back into your business
- Allows you to start taking 1% profit immediately
- Forces you to be more innovative and frugal
The 5 fundamental accounts in every business
3. Owner’s compensation
5. Operating expenses (includes employee payroll)
How Mike thinks about getting to the owner’s box
- Entrepreneur’s goal not to DO job but CREATE jobs
- Make strategic moves vs. hustle and grind
Mike’s advice on making your business run itself
- Declare 4-week vacation 18 months from now
- Set up systems and delegate to empower team
- Develop backups for every role in organization
- Take on role of supervisionary, not superhero
Connect with Mike Michalowicz
Connect with Michael Blank
Email [email protected]