Small Business Answer Man Podcast with Gary Wilbers, Episode 261 with Rocky Lalvani - How to have a growing and more profitable business

Ep: 261 Rocky Lalvani

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How to Have a Growing and More Profitable Business

Rocky Lalvani serves as Chief Profitability Adviser for business owners. He teaches them how to ensure they get paid and make profit a priority! As a certified Profit First Professional he implements Mike Michalowicz’s Profit First System.  We change the accounting formula of Sales – Expenses = Profit to Sales – Profit = Expenses.  This ensures Profit comes first! (PS. It’s not about money at all costs, people come before money!)

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What problem do you solve?

He helps businesses to have increased cash flow, more profit, and continue to grow in an inappropriate way.

Show Notes:

  • Mike Michalowicz is the author of Profit First
    • Mike realized we have the wrong equation for profit. We look at the top line given by the accountants.
    • Mike created a cash flow system that works for business owners.
    • It help people figure out what’s going on in their business without opening up their accounting books.
  • Sometimes the accountant says you were profitable but you don’t see the money.
  • You may be profitable but not have the cash to pay the tax bill.
  • With the Profit First system you take every dollar that comes into the business and you give it a job.
  • You put your money in separate accounts. You go to your tax account to pay your tax bill. When you want use your profits, you go to the account that has your profit in it and you can actually see it.
  • Parkinson’s law says that a business will use all the time and money allocated to it.
  • The 80:20 rule says 20% of what you do creates 80% of the results. Also, 40% of what you do creates 96% of the results. So that means 60% of what you are doing is useless. You need to think about what you are doing and what you should not do. If you are grinding you are not being efficient.
  • Islands of Profit in a Sea of Red Ink: Why 40 Percent of Your Business Is Unprofitable and How to Fix It by Jonathan Byrnes — He says 20-30 % of what a company does makes over 100 % of the profit, 30-40% loses money and the rest breaks even. You must take the time to understand your business.
  • You need to slow down and really look at your business.
  • Rocky gives input on his podcast: Profit Answer Man

Rocky Lalvanis Best Small Business Tip

At the end of the day you have to understand your financials. Use resources if you need to.

Connect with Rocky:

Website: ProfitComesFirst.com

Twitter

Instagram

LinkedIn

Learn more about Gary’s Mastermind group at goascend.biz/the-mastermind-solution

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