Profitcon 2023: The Review

Mike Michalowicz: The Man Behind Profit First

Before we delve into the profound impact of ProfitCon 2023, let's take a closer look at the man, the myth, the legend – Mike Michalowicz. It was great to finally meet Mike in person after reading his books and watching his videos online. I have to say, Mike is hands down one of the most engaging and easy-to-follow presenters I have ever heard. Hearing Mike talk about his career was inspiring, and his career history is a testament to his unwavering determination and commitment to helping business owners succeed.

Mike presented across the two-day event for about 3 hours in total. He covered how he began his entrepreneurial journey in his early twenties, founding and selling multiple businesses. Despite his initial successes, he struggled to generate a profit with his businesses and encountered a turning point that nearly wiped him out financially. This moment would ultimately lead to the creation of Profit First, a system that has changed the financial landscape for countless entrepreneurs and business owners.

The Rise of Profit First

Mike Michalowicz's journey was not without its challenges. He faced significant financial setbacks that left him emotionally and financially reeling. Like many entrepreneurs, he had poured his heart, soul, and savings into his businesses. When the tide turned against him, it seemed like he had lost everything. At one critical juncture, he was completely bankrupt and had to move his family out of their home and live with friends.

During this tumultuous period, Mike had a realisation whilst watching a fitness guru talk about strategies for losing weight and staying fit. These same principles became the basis for Profit First. The more Mike thought about it, the more he realised that the traditional formula for managing finances in business was fundamentally flawed. Entrepreneurs like him placed profitability on the back burner, leading to financial instability and personal hardship.

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The Genesis of Profit First

Out of the ashes of his financial struggles, Mike Michalowicz had an epiphany. He realised that the standard accounting formula of Sales - Expenses = profit needed to be fixed. Instead, he devised a novel concept: allocate your profits first. If profits are the most crucial thing in a business, do it first. The Profit First method was born.

This revolutionary approach forced business owners to prioritise profitability by setting aside profits before anything else. This simple yet powerful shift in perspective allowed entrepreneurs to secure their financial success from the beginning.

Food and Toothpaste - We Fill What's Available

During the presentation, Mike highlighted two great examples that resonated with me. It's about the concept that humans like to fill what is available. The first example was around food. If you have a plate of food, your natural inclination is to finish off all the food on your plate. Even if you are full, you will still finish off what is on the plate. Mike highlights that many studies have shown that serving smaller food dishes is a great way to lose weight, as you will naturally eat what is on the plate. This is no different to business finances. As soon as we make more money, we tend to spend more of it, leaving us perpetually at break-even or, even worse, running at a loss.

The second example was around toothpaste. When you get a new tube, you will put ample amounts of toothpaste on your brush - you have plenty available, so why not? On the other hand, when you are running low on toothpaste, you'll squeeze and squeeze every last ounce out of it. This can be applied again to your business. If you restrict what you can spend on expenses by distributing your profit, tax and owner's pay first, you will find a way to make what you have left work. As they say, necessity is the mother of invention.

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ProfitCon 2023 Highlights

ProfitCon 2023, the epicentre of the Profit First movement, featured an impressive lineup of keynote speakers, interactive workshops, and networking opportunities. Here are some of the highlights that made this event truly exceptional:

• Keynote Speakers: Mike Michalowicz delivered two compelling keynotes with practical tips and success stories that inspired and motivated the audience. Other experts like Emma Campbell (Unlock Your Vision & Expand Your Mindset), Jackie Campbell (Amplifying your Audience) and Jay Crisp Crowe (The Truth about words that sell) also ran great sessions that helped the audience think deeper about how to operate their businesses.
• Interactive Workshops: Attendees had the opportunity to break out into groups and participate in close-knit discussions with the guest speakers. Jason Snider, a guest from Portland, USA, was a highlight as he discussed his strategies for expanding his Profit First business and using staff offshore.
• Networking and Collaboration: The sense of community and collaboration at ProfitCon was incredible. Attendees connected with like-minded individuals shared experiences, and built valuable relationships. Many new friends were made during the event, but also at the evening dinners after each day.

Thriday Launches Automated Profit First Allocations

At Profitcon 2023, I was pleased to announce that Thriday launched a game-changing innovation: Automated Profit First allocations. This revolutionary new feature streamlines the allocation of profits, enabling businesses to effortlessly allocate funds for various financial goals, ensuring healthier financial growth. You can set up all your allocations, and when you get income, the distribution to your accounts will happen automatically.

Key Takeaways

ProfitCon 2023 was a transformative event that demonstrated the profound impact of Profit First in the world of finance and entrepreneurship. It brought together entrepreneurs, business owners, and financial enthusiasts from diverse backgrounds, leaving them with renewed purpose and practical strategies for lasting economic success.

If you missed ProfitCon this year, don't worry – you can start implementing Profit First in your business today. Profit First is not just a concept; it's a movement changing the financial landscape for the better, one business at a time. Begin your journey to financial success with Profit First, and you'll be on your way to a more profitable and prosperous future. Stay tuned for Profitcon 2024, which will be held in Geelong, Victoria, on October 22-24. Special thanks to Laura Elkaslassy for inviting us and who pulled together a fantastic event.