Cash Flow
Profit First
Mike Michalowicz
A simple discipline for cash flow and actually keeping profit.
Recommended for: I Don't Know If My Business Is Actually Healthy
All Challenges
Growth
I Don't Know If My Business Is Actually Healthy
Look across ten areas to find what needs attention — not to grade yourself.
The Challenge
Look across ten areas to find what needs attention — not to grade yourself.
Why This Happens
- No regular review
- Looking only at revenue
- Not tracking key numbers
Questions to Ask Yourself
- 1.Sales: are they steady?
- 2.Profit: is there money left?
- 3.Cash flow: can you pay bills on time?
- 4.Operations: does work run smoothly?
- 5.Employees: are they reliable?
- 6.Leadership: are others leading?
- 7.Customers: are they happy?
- 8.Systems: is work documented?
- 9.Marketing: do leads come in?
- 10.Owner dependence: can it run without you?
What to Do First
1
Take the Find My Biggest Challenge check-up.
2
Write the two weakest areas.
3
Pick one to focus on.
Step-by-Step Solution
- 1
Review each of the ten areas honestly.
- 2
Mark each as Strong, OK, or Needs Attention.
- 3
Choose the weakest area.
- 4
Open its challenge page.
- 5
Start its 7-Day Plan.
Three Levels of Solutions
Quick Win
Do this today
Rate each of the ten areas Strong, OK, or Needs Attention.
Build the System
Next 30 days
Review these areas monthly and track progress.
Long-Term Transformation
Where you're headed
Regular check-ups that catch problems early.
Lessons From the Pass It On Library
From Fix This Next
Find the weakest level of the pyramid.
Framework: Business Priority Pyramid: Sales → Profit → Order → Impact → Legacy
From Profit First
Review cash regularly.
Framework: Allocate first: Profit, Owner Pay, Taxes, Operating Expenses.
Pass It On Action
Take the check-up and share your top area with a mentor.
Your Action Plans
Sign in to check off steps and save progress to My Growth Plan. Sign in
7-Day Action Plan
- Day 1 — Identify the problem: write down exactly how “I Don't Know If My Business Is Actually Healthy” shows up in your business.
- Day 2 — Review the numbers: gather the facts, figures, and examples connected to this challenge.
- Day 3 — Find the root cause: answer “Sales: are they steady?”
- Day 4 — Choose one change: Take the Find My Biggest Challenge check-up.
- Day 5 — Assign responsibility: name ONE owner, a deadline, and the expected result.
- Day 6 — Implement: Write the two weakest areas.
- Day 7 — Review what happened: what worked, what didn’t, and what you’ll do next week.
30-Day Action Plan
Week 1 — Diagnose
- Answer: Sales: are they steady?
- Answer: Profit: is there money left?
- Answer: Cash flow: can you pay bills on time?
- Complete the 7-Day Action Plan.
Week 2 — Build
- Review these areas monthly and track progress.
- Review each of the ten areas honestly.
- Mark each as Strong, OK, or Needs Attention.
- Choose the weakest area.
Week 3 — Implement
- Open its challenge page.
- Start its 7-Day Plan.
- Train the people involved and assign owners.
Week 4 — Measure & Improve
- Compare results to where you started.
- Write one lesson learned.
- Adjust the process.
- Share what you learned with someone in the fellowship.
Biblical Principles
Wisdom for the journey — encouraging stewardship, integrity, and service, never a promise of guaranteed success.
#41 · Money Management
Know the financial condition of your business
Proverbs 27:23–24
#47 · Money Management
Create a financial plan
Proverbs 21:5
#89 · Wisdom
Learn from correction
Proverbs 15:31–32
Related Challenges
Recommended Books
Approved Bookshelf resources related to this challenge.
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