Mike Michalowicz

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Mike Michalowicz
Mike Michalowicz speaks during a panel discussion at an entrepreneur gathering in Kingston Jamaica.
Author of The Toilet Paper Entrepreneur, The Pumpkin Plan and Profit First
Born Michael Michalowicz
(1970-09-19) September 19, 1970 (age 44)
Boonton, New Jersey
Nationality American
Alma mater Virginia Tech
Occupation author, expert
Known for Author, Entrepreneurship, Marketing
Notable work(s) The Toilet Paper Entrepreneur, The Pumpkin Plan, Profit First
Spouse(s) Krista Michalowicz
Website
MikeMichalowicz.com ProfitFirstBook.com PumpkinPlan.com ToiletPaperEntrepreneur.com ProfitFirstProfessionals.com

Mike Michalowicz (born September 24, 1971) is an American author, entrepreneur, and lecturer.[1] [2][3] [4] He is the author of the business books Profit First (July 2014), The Pumpkin Plan (July 2012) and The Toilet Paper Entrepreneur (September 2008),[5][6][7][8] is an advocate of a business philosophy by the same name,[9][10][11][12] and is a former small business columnist for The Wall Street Journal.[13][14] He is the "Business Rescue" segment host for MSNBC's Your Business.[15] He also hosted the reality television program called Bailout!.[16]

Michalowicz is a former monthly columnist for The Wall Street Journal's small-business section, and wrote the Small Business Shortcuts series.[17] He is a regular contributor to Entrepreneur Magazine and is also a columnist for American Express's "Open Forum" series.[18] He was a recurring entrepreneurship expert for CNBC's The Big Idea with Donny Deutsch. He had over ten appearances, including the CES Roadshow series.[19] Michalowicz has also appeared on NBC, MSNBC, Fox News, ABC News Now, CNBC's On the Money and Pat Croce's Down To Business.[20][20][21][22] He is a lecturer on the subjects of entrepreneurship, sales, and behavioral marketing techniques[23] at universities, corporations and organizations throughout the world.[24] [25]

He authored the book and hosted the reality program as "Mike" Michalowicz as opposed to under his given name, Michael. According to the author's biography on the Toilet Paper Entrepreneur website, his last name, "Michalowicz", is pronounced as "mi-CAL-o-witz".[26]

Profit First (Book)[edit]

Released on July 4th, 2014.

In the book, the author identifies the four core methods to running a profitable business, and is derived from an article he published in The Wall Street Journal on December 10, 2010[27] The four core methods Michalowicz identifies in Profit First, and are derived from the healthy lifestyle habits are 1. Use Smaller Plates (the concept of having multiple "small" accounts to manage money intended for different purposes), 2. Eat Vegetables First (the concept of taking profit first, then owner's pay, then taxes, and lastly using the remainder for expenses), 3. Remove Temptation (make your accumulating profit, tax and under funds difficult to access and view and you will be less tempted to "steal" from yourself), 4. Use A Rhythm (manage the books twice a month, specifically on the 10th/25th to get a keen sense for cash flow).

Michalowicz indicates that the natural tendency of entrepreneurs is to do "bank balance accounting", where they view their bank balance regularly and that they make financial decisions on the balance they see. The author argues that instead of trying to change this natural tendency in entrepreneurs, that is should be leveraged. By implementing the four core methods documented in Profit First, the entrepreneur can continue this natural habit to great effect, maximizing profit, controlling expenses and mastering cash flow management.[28]

The Pumpkin Plan (Book)[edit]

Released July 2012 by Portfolio an imprint of Penguin Group.

In the book, the author defines the seven significant milestones to growing a colossal pumpkin and how a colossal business is "grown" the same way.[29] In the book a colossal business is defined as a niche or category leader, not necessarily on the size of revenue or number of employees. The author argues that many entrepreneurs fall into the "time for money trap" and need to change their actions from doing the work to designing how the work is done for it to grow. The entrepreneurs goal is for the business to serve them, not to have them serve the business.[30]

The Toilet Paper Entrepreneur (Book)[edit]

In September 2008, Obsidian Launch released Michalowicz's book The Toilet Paper Entrepreneur. The book has subsequently been translated into multiple foreign languages, such as Spanish, Korean, Czech, Japanese, Polish, Simplified Chinese and Russian. The irreverent[31] book is an entertaining hard-edged read mixed with valuable business lessons from an experienced entrepreneur.[32] [33]

The author argues a successful entrepreneur embodies the flexibility and vision many large companies lack. Michalowicz states that hard-line traditional business planning is ineffective and often detrimental; and that successful growth of a business requires a dynamic planning method, called a 3 Sheet Strategy.[34]

Among other growth techniques, Michalowicz argues the leap frogging strategy of significantly pushing ahead in one "area of innovation", either price, convenience or quality. Michalowicz shows examples of this, including the rise and fall of Blockbuster, Netflix and Redbox.[35]

In The Toilet Paper Entrepreneur, Michalowicz argues that the General Accepted Accounting Principles (GAAP), while a standard practice for measuring a company's P&L (profit/loss), is in fact detrimental to an entrepreneur's money management. He argues the use of a method he calls Profit First Accounting (PFA) instead of GAAP alone.[36]

In the book, Michalowicz occasionally pulls from his own entrepreneurial background, explaining how funding actually hampered his company's growth. Ultimately it was the lack of investment funds that helped his businesses grow quickly and healthily.[37]

Michalowicz manages a website, also called The Toilet Paper Entrepreneur, with a large volume of resources for entrepreneurs.[38]

Philosophy[edit]

Michalowicz has lectured at US and international universities ,[39] keynoted corporate gatherings,[40] authored books,[41] published articles for national periodicals, and made national television and radio appearances as an expert discussing entrepreneurial concepts[42] and approaches he terms as a "Toilet-Paper Entrepreneur". [43] [44] [45] [46] [47] This name is derived from the following analogy paraphrased from Michalowicz's book:

Have you ever been in the bathroom only to realize there are a mere three sheets of toilet paper left...but somehow, often with the help of the trashcan remnants, manage to make it work? This is how a Toilet Paper Entrepreneur runs their business... they make do with what they have, pull "miracles" out of the trash and make more and more with less and less.

The Toilet Paper Entrepreneur philosophy is based on the notion that not only can one start a business with fewer resources,[48][49] but that having fewer resources can actually work to your benefit .[50] For example, having fewer resources can force the business to address an issue in highly innovative ways versus simply spending money blindly to solve it. [51] [52]

Michalowicz's writing and interview style is blunt honesty, speckled with humor.[53] In an interview with Inc. magazine, Michalowicz was asked, "How to balance work and family life". His response was:

"You don't. And the fact that you are asking this before you have even put in your first five years with a new business, means that you probably are not cut out to be an entrepreneur."

[54]

Provendus Group[edit]

Michalowicz is the CEO of Provendus Group,[55] a firm that helps industry experts and authors scale their business.[56] [57]

Bailout! (reality television program)[edit]

Michalowicz is was the host of the reality television program Bailout! The executive producer for Bailout! is Wil Surratt, the former executive producer of The Big Idea with Donny Deutsch. Bailout! highlights struggling entrepreneurs, and Michalowicz is given 24 hours to fix their businesses.[58] Bailout! was subsequently canceled and now airs on "webisodes" through BBE distribution.

Select television appearances[edit]

Michalowicz is a recurring, small-business expert, guest on CNBC (over 10 appearances), ABC (over 3 appearances), MSNBC (over 17 appearances), including:

  • December 27, 2007 CNBC's The Big Idea with Donny Deutsch - "Alienating Your Base" segment[60]
  • September 9, 2011 MSNBC's (Michalowicz hosting) Your Business - "Saving Swing Sets"[65]

Early career[edit]

Michalowicz is a native of Boonton, NJ. He graduated from Virginia Tech with two degrees, one in finance and one in management science.[68] He launched his first company, Olmec Systems, at the age of 24, in August 1996.[69] During his tenure at Olmec, he was recognized by the U.S. Small Business Administration as The Young Entrepreneur of the Year.[70] Michalowicz completed MIT's 'Birthing of Giants' entrepreneurial program in 2003. The program is sponsored by YEO (Young Entrepreneurs Organization) and Inc. Magazine, and is facilitated at MIT facilities by professors, lecturers and entrepreneurs.[71] He sold the company through a private transaction on December 31, 2002. On January 1, 2003, he launched his second company, PG Lewis & Associates (PGLA), which grew to national prominence by 2005,[72] by completing large data forensics projects for historically significant court cases including the Enron collapse.[73][74] PGLA was acquired by Protiviti, a division of Robert Half International (NYSE: RHI) on March 1, 2006. Terms were not disclosed.[75]

Michalowicz is founder and CEO of, Provendus Group,[76] a growth accelerator that facilitates rapid growth in early stage companies by utilizing techniques from Michalowicz's books. Provendus Group is a profit share venture firm - it does not charge a fee or take equity. The President of Provendus Group is Donna Leyens.[77]

References[edit]

  1. ^ Kathleen Saunders. "Techniques From 'The Toilet Paper Entrepreneur:' A Student Reflection on the Counselors Academy Conference". prsa.org. 
  2. ^ Melissa Gasnick Cloeter. "Entrepreneurial Women Forge Ahead". The Star Ledger. 
  3. ^ Dean DeChiaro. "Ideas on the Horizon". Hudson Reporter. 
  4. ^ Dale Neal. "Asheville business gets MSNBC makeover". Citizen Times. 
  5. ^ Michalowicz, Michael (2008). The Toilet Paper Entrepreneur. Obsidian Launch, LLC. ISBN 0-9818082-0-4. 
  6. ^ James Park. "Special Report: Innovate in a Recession". U.S. News & World Report. 
  7. ^ G. Michael Maddock and Raphael Louis Vitón. "An Army of One". BusinessWeek. 
  8. ^ Cindy Perman. "Businesses You Can Start for Under $5K". CNBC. 
  9. ^ Michelle Fox. "Financing Your Small Business In A Tough Economy". CNBC. 
  10. ^ Deborah Jeanne Sergeant. "Mike Michalowicz: A Quirky Approach to Business". Home Business Magazine. 
  11. ^ Carol Tice. "Accounting Tips to Help Your Business Thrive". Entrepreneur Magazine. 
  12. ^ Melissa Gasnick Cloeter. "New Decade, New Breed of Entrepreneur". NJ Star Ledger. 
  13. ^ Alex Lindahl. "Obsidian Launch: Accelerate Your Business".  "Mike Michalowicz Biography". 
  14. ^ Christian Schappel. "A list your employees will love". HR Morning. 
  15. ^ MSNBC's Your Business. "American Business: Makeover On Main with Mike Michalowicz". 
  16. ^ Walter O'Brien. "Television show films episode in Lebanon Borough, gives restaurant a 'reality' check". 
  17. ^ Mike Michalowicz (July 22, 2010). "Small Business Shortcuts". The Wall Street Journal. 
  18. ^ Rex Huppke (July 28, 2011). "I Just Work Here". Chicago Tribune. 
  19. ^ "Your Business". MSNBC. 
  20. ^ a b "On The Money with Carmen Wong Ulrich". CNBC. 
  21. ^ "ABC News Now - Money Matters". ABC News. 
  22. ^ Pat Croce. "Down To Business". Conde Nast Publications. 
  23. ^ Mary Mann. "Toilet Paper Entrepreneur Coming to SOMA". Maplewood Patch. 
  24. ^ "Expert Curriculum". eBay. 
  25. ^ Dean L. Swanson. "When A Business Hits A Wall". Faribault Daily News. 
  26. ^ "The Toilet Paper Entrepreneur". 
  27. ^ Mike Michalowicz. "How Entrepreneurs Can Fill the "GAAP"". The Wall Street Journal. 
  28. ^ Mike Michalowicz. "How GAAP Hinders Profitability". AccountingToday. 
  29. ^ Ivana Taylor. "Read The Pumpkin Plan to Grow Your Business". Small Business Trends. 
  30. ^ Melinda Emerson. "How the Toilet Paper Entrepreneur Branded Himself Too Well". The New York Times. 
  31. ^ Marty Zwilling (February 25, 2011). "7 Keys to the Ideal Mental Age for an Entrepreneur". Huffington Post. 
  32. ^ James Park. "Where to Get Inspired". Entrepreneur. 
  33. ^ Chris Cameron. "Weekend Reading: The Toilet Paper Entrepreneur, by Mike Michalowicz". ReadWrite Start. 
  34. ^ G. Michael Maddock and Raphael Louis Vitón. "Don't Let a Good Crisis Go to Waste - The best entrepreneurs know a recession is an opportunity to reinvent themselves, their businesses, and sometimes even their industry". BusinessWeek. 
  35. ^ Erin Schultz. "A Redbox Blockerbuster". Riverhead News-Review. 
  36. ^ Ted M. Natt Jr. "Going Against The Grain, For Success". The Pilot. 
  37. ^ Megan Erickson (September 8, 2009). "Easy Money Can Kill A Small Business". CNN Money. Retrieved May 12, 2010. 
  38. ^ "Genius Resources and Products for Entrepreneurs". Entrepreneur. 
  39. ^ Ana Paulina Valencia. "Mike Michalowicz: El gurú de los emprendedores". Reporte Indigo. 
  40. ^ Terri Lee Ryan. "Skip the Job: Become an Entrepreneur". Chicago Now. 
  41. ^ Dorie Clark. "How Mike Michalowicz Went From Unknown, Self-Published Author To Mainstream Publishing Success". Forbes. 
  42. ^ Nitasha Tiku. "25 Tech Companies You Want To Work For". Inc. 
  43. ^ Michael O'Brien. "Believing: The Way Of The Entrepreneur". The Heights. 
  44. ^ Bruce & MG Howard. "Bruce & MG - After Their Appearance on The Big Idea". CNBC. 
  45. ^ Adam Davidson. "Entrepreneurs Reflect on Wall Street's Scary Week". National Public Radio. 
  46. ^ Maria Lemus. "Multi-millionaire to share business advice". Daily Bruin. 
  47. ^ Nate Breg. "YET event brings together students from local colleges". The Tufts Daily. 
  48. ^ Paul B. Brown (November 24, 2009). "How to Cut Costs in Bad Times (and Good)". New York Times. Retrieved May 12, 2010. 
  49. ^ Linsey Knerl. "Profile: The Toilet Paper Entrepreneur". American Express, OPEN. 
  50. ^ Mike Michalowicz. "Are You a Toilet Paper Entrepreneur?". CNBC. 
  51. ^ Mike Michalowicz. "Things You DON'T Need To Launch Your Business". CNBC. 
  52. ^ Christopher Steiner (November 5, 2009). "How To Take Your Business To The Next Level". Forbes. Archived from the original on January 23, 2013. 
  53. ^ Ryan Paugh. "Chances Are You’re A Toilet Paper Entrepreneur". Brazen Careerist. 
  54. ^ Max Chafkin. "How to Sell Your Business and Gaga Sells Gadgets". Inc. 
  55. ^ Karen E. Klein. "Take a 'Proven' New Technology to Market". Bloomberg Business Week. 
  56. ^ David Port. "Become a Follow-Up Fanatic". Entrepreneur. 
  57. ^ Ms. Barbara Haislip (August 22, 2011). "Relax. Have Fun. Get Inspired.". The Wall Street Journal. 
  58. ^ Walter O'Brien. "Television show films episode in Lebanon Borough, gives restaurant a 'reality' check". myCentralnj. 
  59. ^ "The Big Idea with Donny Deutsch". CNBC. 
  60. ^ "The Big Idea with Donny Deutsch". CNBC. 
  61. ^ "Your Business". MSNBC. 
  62. ^ "Your Business". MSNBC. 
  63. ^ "Your Business (Business Makeover Edition) // Hosted By Mike Michalowicz". MSNBC. 
  64. ^ "Your Business". MSNBC. 
  65. ^ "Your Business (Business Makeover Edition) // Hosted By Mike Michalowicz". MSNBC. 
  66. ^ "Your Business (Business Makeover Edition) // Hosted By Mike Michalowicz". MSNBC. 
  67. ^ "Your Business". MSNBC. 
  68. ^ Tehani Schneider. "Morris entrepreneur shares his secrets in 'Toilet Paper'". Daily Record. 
  69. ^ "Customer service pays off for New Jersey alumnus". Virginia Tech Magazine. 
  70. ^ SBA New Jersey, "SBA Honors Small business Week Winners", page 8, webpage: NJS.
  71. ^ "Birthing of Giants Program". Inc. 
  72. ^ G. Michael Maddock and Raphael Louis Vitón (August 24, 2010). "Why Innovation Is Beginner's Luck". Businessweek. 
  73. ^ "Executive Profile", Business Week, webpage: BW-523.
  74. ^ Michael Michalowicz (March 31, 2005). "Data Forensics: In Search of the Smoking Gun". 
  75. ^ Thomson Financial Mergers & Acquisitions (March 2, 2006). "Protiviti Inc Acquires PG Lewis & Associates LLC". 
  76. ^ "About Us, Success is doing what you love". 
  77. ^ Provendus Group (Copyright 2012-2013). "Provendus Group".  Check date values in: |date= (help)

External links[edit]