This chapter emphasizes the importance of managing business finances, specifically taxes, and avoiding the common mistake of under-reserving. It explores the psychological aspect of loss aversion and discusses the allocation percentages for different categories of a business's income based on a study of fiscally elite businesses.
Sales minus expenses equals profit, right? Not exactly, according to Mike Michalowicz, our guest on today’s episode.
A lot of business leaders aren’t maximizing their profits because they’re thinking about them as what’s “left over.” He shares his system for structuring your business’ finances so you put the priority on profit. It’s remarkably simple and will help you reshape your entire mindset around how you look at profit and expenses.
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