S1E23 | Why Profit Has to Come First in a Trades Business with Mike Michalowicz

Most business owners were taught the same formula: Revenue minus expenses equals profit. Mike Michalowicz believes that formula is one of the biggest reasons entrepreneurs stay stuck financially. In this episode of Builders, Makers, Doers, Andy Bassett and Elliot Bassett sit down with Mike Michalowicz to talk about profit protection, owner psychology, operational discipline, and why so many businesses work hard without actually building financial resiliency. This conversation matters because a lot of trades businesses are generating revenue while still operating too close to the edge. Mike explains why profit cannot be treated as whatever is left over, and how taking profit first forces owners to confront pricing problems, overspending, weak marketing, and operational inefficiencies before they become bigger risks. In this episode: Why “Revenue - Expenses = Profit” creates behavioral problems for owners How Profit First exposes what is actually broken inside a business Why ordinary trades businesses often have the biggest opportunity to stand out What ambitious employees are really looking for from leadership How customer experience can outperform expensive marketing Guest: Mike Michalowicz Co-Founder, Entrepreneur   / mikemichalowicz   https://mikemichalowicz.com/ ▶ Subscribe for more conversations with builders, makers, and doers solving real business problems in construction, manufacturing, and the skilled trades. Stay Connected & Follow the Movement • Follow Builders, Makers, Doers on LinkedIn   / ellerbrock-norris   • Grab a copy of Andy Bassett’s book https://www.ellerbrock-norris.com/book Connect with the Hosts Andy Bassett CEO, Ellerbrock-Norris   / andy-bassett-cpcu-cic-7711853   Elliot Bassett President and Partner, Ellerbrock-Norris   / elliot-bassett-aip-cpcu-84499515   🌐 https://www.ellerbrock-norris.com/ Chapters: 00:00 — Why So Many Entrepreneurs Stay Financially Stuck 02:35 — The Problem With the Traditional Profit Formula 04:05 — Profit First Exposes What’s Actually Broken 07:30 — Can Profit First Still Support Growth? 10:40 — Why Employees Do Not Care About Your Revenue Goal 16:35 — Open Books and Quarterly Profit Distributions 18:30 — The Truth About Ambitious Employees 22:00 — The HVAC Company That Replaced Ads With Experience 24:00 — Why Ordinary Businesses Have the Biggest Opportunity