---
title: Why Profit Has to Come First in a Trades Business with Mike Michalowicz
description: Discover why prioritizing profit is essential for trades businesses. Learn how to overcome financial challenges and build resilience with insights from Mike Michalowicz.
---

[The Builders, Makers, Doers Podcast ](https://www.ellerbrock-norris.com/podcast)

# [Why Profit Has to Come First in a Trades Business with Mike Michalowicz](https://www.ellerbrock-norris.com/podcast/why-profit-has-to-come-first-in-a-trades-business-with-mike-michalowicz)

 Written by [Cameron Carlow](https://www.ellerbrock-norris.com/podcast/author/cameron-carlow) | May 21, 2026 1:50:42 PM

[Mike Michalowicz](https://www.linkedin.com/in/mikemichalowicz/) is an author, speaker and [business consultant](https://mikemichalowicz.com/) who helps owners in the trades change the way think about profitability. We all became owners to chase financial independence and find freedom. The problem? Most end up fighting a daily battle because they don't put profits first.  
Most business owners were taught the same formula: Revenue minus expenses equals profit.

Mike believes that formula is one of the biggest reasons entrepreneurs stay stuck financially.

In this episode of Builders, Makers, Doers, Andy and Elliot sit down with Mike 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

 

 

## 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

 

 

## Follow the Show

🔗 [Stay Connected & Join the Community](https://www.ellerbrock-norris.com/the-shield)

🏆 More on our guest:

- <https://www.discoverbison.com/>Follow Mike Michalowicz on [LinkedIn](https://www.linkedin.com/in/mikemichalowicz/), [Instagram](https://www.instagram.com/mikemichalowicz/) and [YouTube](https://www.youtube.com/user/MikeMichalowicz)
- [Mike Michalowicz website](https://mikemichalowicz.com/)<https://www.linkedin.com/in/aggunderson/>

🎧 Subscribe

- [YouTube](https://www.youtube.com/playlist?list=PL1thzZppgNnQZtVSZlacOK0y_2uPbysE6)
- [Spotify](https://open.spotify.com/show/0Lru75KTKQqnmFqvi5Y6mu?si=5beae84a2f8c418f)
- [Apple Podcasts](https://podcasts.apple.com/us/podcast/s1e2-80-of-a-trades-owners-wealth-is-trapped-in/id1861626498?i=1000742326931)

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🎤 Connect with the Hosts:

- [Andy Bassett](https://www.linkedin.com/in/andy-bassett-cpcu-cic-7711853/)
- [Elliot Bassett](https://www.linkedin.com/in/elliot-bassett-aip-cpcu-84499515/)<https://www.linkedin.com/in/elliot-bassett-aip-cpcu-84499515/>

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