Episode Details

Working in the ‘Gig Economy’ where you spend your career jumping from one project to the next can provide the freedom of choice that so many in the creative world desperately crave...but the dark side of living the freelance life is the complete, total, and utter lack of job security. Now with the advent of the brand new AB5 legislation here in California, practically overnight it has become almost impossible to make your living as a freelancer. Without a sound financial system (enter 'Profit First') that keeps you equally prepared for both the feast and famine portions of your career (and there WILL be both), your lack of savings could be the deciding factor between saying yes or no to a job you would otherwise never consider.

Fast forward to a decade later where you’ve spent the last ten years “just finding the next gig” so you can pay your bills you find yourself wondering “How the heck did I get here?” And one of the main reasons could be as simple as not having your finances organized so you can confidently say NO to projects you don’t want to work on.

My guest today is Mike Michalowicz, founder of several multimillion dollar companies as well as an author of multiple bestselling books on entrepreneurship. Today we talk specifically about his book ‘Profit First,’ an incredibly simple yet powerful way to manage your finances as a small business owner (and yes, even as a freelancer you own a small business) that if done consistently can afford you the time and freedom you need to prioritize your career growth (and your well-being) as opposed to always feeling like you’re just chasing the next gig.

(Note: This episode doesn’t specifically talk about the AB5 legislation because this interview was recorded before it became law. But regardless, if you’re struggling to navigate the new world of being a freelancer versus becoming an employee, there is no system I recommend more highly than Mike’s ‘Profit First’ system)

Want to Hear More Episodes Like This One?

» Click here to subscribe and never miss another episode

Here's What You'll Learn:

• Where the idea of “Profit First” came from in Mike’s experience as an entrepreneur.
• Why whether you work in the ‘gig economy’ as freelancer/contractor or run a business, you are effectively an ‘entrepreneur’.
• A powerful demonstration of why the conventional wisdom of “Income - Expenses = Profit” logically makes sense, but is behaviorally flawed.
• How the “Profit First” formula “Income - Profit = Expenses” flips the script and creates a powerful paradigm shift in how you look at your business.
• How to apply the “Pay Yourself First” principle as a freelancer and setup a system that will automatically build that ‘sleep well’ money cushion to give you the freedom to pursue a more rewarding career path.
• ’Parkinson’s Law’ of human behavior around money and how the “Profit First” principle works with it, instead of against it.
• Mike’s deeply personal story of becoming a self-made millionaire in his early 30’s, losing it all in 2 years, breaking the news to his family, and the moment with his daughter that he’ll never forget.
• HOW TO: What does it mean in practice to take your “Profit First” and how it impacts your business/financial decisions (even if you think you’re not ‘profitable’ yet).
• QUESTION: As a freelancer, if you had to hire someone to replace you, what would you have to