In this episode, we explore the real story behind the creation of Profit First. After selling his second multi–million-pound business, Mike Michalowicz appeared to be the picture of entrepreneurial success — until a single conversation with his accountant revealed he was completely broke. Years of impulsive spending, poor financial habits and mounting shame sent him into a spiral that many business owners quietly relate to.

But hitting rock bottom became the turning point. Mike rebuilt his life by rethinking the traditional formula of business finance and creating what we now know as Profit First — a simple yet transformative system that ensures entrepreneurs prioritise profit instead of treating it as whatever’s “left over”.

In this episode, you’ll hear how Mike’s hardest chapter became the foundation for a framework that has helped thousands of business owners escape financial chaos and build sustainable, profitable businesses.

Key Takeaways

• Mike’s collapse from wealth to crisis shows how quickly success can crumble without financial discipline.
• Profit First was born from the realisation that profit must be protected first, not hoped for later.
• Emotions drive far more financial decisions than spreadsheets — and that’s why structure matters.
• Shifting profit from an afterthought to a habit is the cornerstone of long-term stability.
• Rock bottom can be the catalyst for life-changing innovation.
• Implementing Profit First helps business owners avoid the traps that led to Mike’s downfall.