Profit First System with Rocky Lalvani
The Profit First system for small business success and profitability with entrepreneur Rocky Lalvani.
Many small business owners don’t really know if they are profitable. At best, you run your business, and measure its ongoing success by seeing how much cash you have in the bank at the end of the month. What if instead you followed a system and approach that focuses on paying yourself first? While also making sure you have the cash to cover your expenses, like payroll and taxes? Rocky Lalvani is a Profit First Professional, and he empowers business owners to understand and systematize your numbers so that you can spend more time doing what you love.
Rocky Lalvani serves as a Chief Profitability Adviser for business owners and is the founder of Profit Comes First. He teaches his clients how to ensure they get paid, and they make profit a priority! As a certified Profit First Professional he implements Mike Michalowicz’s Profit First System. He is also the host of the Profit Answer Man podcast.
Rocky started with nothing when his parents immigrated to the United States at age two, and his parents were in their 40’s. It was his parents’ second time starting over in life as they moved here to experience the American dream. Despite lots of struggles and his mom passing away when Rocky was 7, he has been able to achieve financial and life success. Rocky loves to share his journey and inspire others to achieve their dreams even faster.
Rocky lives in Harrisburg, Pennsylvania.
More About Profit First:
Conventional accounting uses the logical (albeit, flawed) formula: Sales – Expenses = Profit. The problem is, businesses are run by humans, and humans aren’t always logical. Serial entrepreneur Mike Michalowicz has developed a behavioral approach to accounting to flip the formula: Sales – Profit = Expenses. Just as the most effective weight loss strategy is to limit portions by using smaller plates, Michalowicz shows that by taking profit first and apportioning only what remains for expenses, entrepreneurs will transform their businesses from cash-eating monsters to profitable cash cows. Using Michalowicz’s Profit First system, readers will learn that:
· Following 4 simple principles can simplify accounting and make it easier to manage a profitable business by looking at bank account balances.
· A small, profitable business can be worth much more than a large business surviving on its top line.
· Businesses that attain early and sustained profitability have a better shot at achieving long-term growth.
With dozens of case studies, practical, step-by-step advice, and his signature sense of humor, Michalowicz has the game-changing roadmap for any entrepreneur to make money they always dreamed of.
Profit First System with Rocky Lalvani:
- Please introduce the Profit First system.
(We change the accounting formula of Sales – Expenses = Profit to Sales – Profit = Expenses. This ensures Profit comes first!)
- Profit First is not an accounting system, it’s a cashflow system for your small business.
- “Grow bottom line not top line” – please explain (Pricing – story – how to grow profit by increase prices decreases cost)
- Please share your thoughts on the importance of having our personal finances in order as well.
- Do I really need all the checking accounts?
- What keeps most business owners from implementing a profit first system?
- What is a common mistake business owners make when implementing this system?
- How do I determine that my business model may never be profitable? What do I do then?
- What’s my first step toward learning more about and implementing the Profit First system?
Episode Host: Henry Lopez is a serial entrepreneur, small business coach, and the host of this episode of The How of Business podcast show – dedicated to helping you start, run and grow your small business.
Books mentioned in this episode:
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- Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
- The Road Less Stupid Hardcover by Keith J. Cunningham
Other Related Podcast Episodes:
If you want to learn more Mike Michalowicz, the author of Profit First, you can listen to episode 322 of The How of Business. On this episode Mike shares his entrepreneur journey and highlights from his latest book.
You can find other episodes of The How of Business podcast, the best small business podcast, on our Archives page.