Why You Can Make Millions… and Still Feel Broke (Part 1)
Why You Can Make Millions… and Still Feel Broke (Part 1)
Profit First Lessons from Mike Michalowicz
Have you ever had a big win in your business… but still felt broke?
Maybe you closed a huge deal. Maybe your revenue hit a record high. Maybe you looked at your pipeline and thought, “This is it. I’ve made it.”
But then… reality hit.
You checked your bank account.
You looked at your bills.
And suddenly, you felt stress instead of success.
If that sounds familiar, you’re not alone.
In this first part of a conversation between David Richter and Mike Michalowicz, they talk about a hard truth:
Making more money does NOT mean you’ll keep more money.
Let’s break down why that happens, and what you can do about it.
The $2 Million Problem
David shared a story about a real estate investor.
This guy had about 20 deals going at once. On paper, he was going to make over $2 million.
Sounds amazing, right?
But here’s what he said on the call:
> “I think I might need to declare bankruptcy.”
Wait… what?
How can someone go from millions in profit… to bankruptcy at the same time?
Here’s what was really happening:
His money was tied up in deals
Some projects were losing money
Costs kept piling up
Cash wasn’t available when he needed it
So even though he was “profitable,” he had no cash.
That’s a dangerous place to be.
And it happens more than you think.
The Truth Most Business Owners Won’t Say
Here’s something Mike pointed out that might surprise you:
Most business owners say they’re doing great… even when they’re struggling.
Why?
Because we feel like we have to.
When you talk to clients or partners, you don’t say:
“Hey, I’m struggling. I really need this deal.”
No, you say:
“We’re doing great. We’re successful. We’re the best choice.”
That’s normal. It’s part of business.
But here’s the problem:
If you pretend everything is fine… you never get the help you actually need.
And behind the scenes, many business owners feel:
Stressed
Alone
Confused about their numbers
In fact, most businesses are living check to check.
Yes, even the ones that look successful.
More Money = More Problems?
Here’s another truth that might feel backward:
The bigger your business gets… the more stress you can have.
Why?
Because:
More sales = more responsibility
More deals = more moving parts
More income = more spending
Mike said it simply:
> “Sales translates to stress.”
If your foundation isn’t strong, growth makes things worse.
It’s like building a bigger house on a cracked foundation.
Everything looks great… until it starts to break.
Why We Spend More When We Make More
Now let’s talk about something called Parkinson’s Law.
This idea is simple:
Whatever is available… we use.
If you have more time, you waste more time
If you have more money, you spend more money
So when your business makes more money…
You start to:
Spend more on marketing
Hire more people
Upgrade your lifestyle
And before you know it…
Your expenses grow just as fast as your income.
So even though you’re making more…
You’re still broke.
The “Big Bank Account” Trap
One of the biggest mistakes business owners make is this:
They keep all their money in one account.
David called it:
> “A big black hole bank account.”
Money goes in… and disappears.
When you have one big account:
You don’t know what’s for profit
You don’t know what’s for expenses
You don’t know what you can actually spend
So you make decisions based on what looks available.
And that leads to trouble.
The Caveman Money Problem
Mike shared a powerful idea that explains WHY we do this.
It goes all the way back to caveman days.
Stay with me here.
Long ago, humans were hunters.
When they caught a big animal—like a woolly mammoth—they had a problem:
The meat would rot.
So what did they do?
They ate as much as they could… as fast as they could.
This is called gorging.
And guess what?
That instinct is still in us today.
When you get a big check, your brain says:
> “Use it now before it’s gone!”
Even though money doesn’t rot…
Your brain still acts like it does.
So you:
Spend it
Reinvest it
Move it quickly
Without a plan.
The Real Solution: A System
So how do you fix this?
Not with willpower.
Not with guessing.
Not with hoping things work out.
You fix it with a system.
That’s where Profit First comes in.
Instead of one big account, you use multiple accounts to:
Separate your money
Control your spending
Protect your profit
Think of it like this:
Instead of eating the whole mammoth…
You cut it up and store it properly.
Now you have control.
Now you can plan.
Now you can actually keep what you earn.
Why This Matters Early (and Late)
Some people think:
“I’ll figure this out later when my business grows.”
That’s a mistake.
Because if you don’t fix your habits now…
You’ll just make bigger mistakes later.
As David said:
Small business → small problems
Big business → BIG problems
The best time to fix your money system is:
Before things get messy.
But if you’re already in a tough spot?
It’s not too late.
You just need to:
Step back
Get clarity
Put a system in place
Final Thought
If you feel like you’re making money… but not keeping it…
There’s nothing wrong with you.
You’re not bad with money.
You’re just missing a system.
Because without a system:
Success feels stressful
Growth feels scary
Money disappears
But with the right system?
You can finally:
Keep your profit
Pay yourself
Build a business that actually supports your life
Next up in Part 2:
We’ll dive deeper into behavior, habits, and how to break the cycle for good.
Ready to Take the Next Step?
At Simple CFO, we believe your financial strategy should be built by people who understand your vision — not just a computer program. Our team has helped hundreds of business owners implement smarter systems, keep more profit, and finally achieve peace of mind with their money.
👉 Book your free Financial Clarity Call today to see how we do things differently and how a CFO partner can transform your business.
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