The ‘Profit First’ mindset isn’t limited to accounting. It can transform your entire business approach and push you out of your comfort zone, leading to unforeseen successes. In this episode, Ron Saharyan and I emphasized that being profitable allows businesses to do more and make a positive impact. Remember, small businesses are the backbone of our economy, and systems like Profit First can help them thrive.
In this episode, we discussed:
- Growth and adoption of Profit First Professionals
- Explanation of Profit First as a cash flow methodology
- Importance of finding a knowledgeable accountant for financial planning and profitability
- Need for accountants to evolve beyond compliance and become business advisors
- Importance of investing in experts as businesses grow
- Value of casual conversations about money and business, but need for financial experts
- Importance of investing in oneself and one’s business
- Unique profit-first strategies and tailoring bank accounts to meet specific needs
- Benefits of working with a profit-first professional in any industry
- Importance of cash flow systems and having a system in place for effective financial allocation
- Versatility of the book “Profit First” for personal and business finances
The key moments in this episode are:
- [00:02:21] – Discussion about the growth and global reach of Profit First
- [00:06:30] – Explanation of what Profit First is, how it works, and why it should be implemented in a business.
- [00:11:23] – The concept of Profit First
- [00:11:54] – The role of accountants as business advisors
- [00:16:04] – Investing in experts to grow your business
- [00:23:12] – Investing in Yourself and Your Business
- [00:24:26] – Charging a Premium for Excellent Services
- [00:28:42] – Creating Specialized Accounts for Business Needs
- [00:33:40] – The importance of being uncomfortable
- [00:36:30] – The benefits of being profitable
- [00:40:18] – The significance of a cash flow system
“I love helping the blue collar industry, they need it and Profit First is one of the best systems that they can be implementing.” Ron Saharyan
Investing in Experts and Upgrading Systems
As businesses grow, Ron saw the need of investing in experts, upgrading systems, and seeking coaching or attending conferences to reach the next level. He also highlighted the significance of surrounding oneself with successful and profitable individuals who can elevate one’s own business.
The Importance of Pricing Services Correctly
We discussed the importance of investing in oneself and one’s business, emphasizing the need to work with experts and not cheap out on essential services. Ron shared a personal experience with a water filtration system that was installed incorrectly, leading to additional expenses and inconvenience. Pricing services is vital to account for potential mistakes and callbacks.
Unique Profit First Strategies
We also discussed unique Profit First strategies, such as creating specific accounts for different purposes. Examples included a gambling account, a liquor account, and even a partner’s insurance account. This flexibility allows the Profit First system to tailor bank accounts to meet specific needs and goals.
The Value of Working with Experts
We touched on the value of working with experts who can provide advice, strategy, and planning. The importance of experts having a network of contacts to provide specialized assistance when needed was also highlighted.
The Benefits of Working with a Profit First Professional
Profit First can be implemented in any industry and it is not just about accounting, but also a mindset. We encouraged business owners to step out of their comfort zones and embrace the discomfort that comes with making changes for the better.
The Versatility of “Profit First”
Ron discussed the versatility of the book “Profit First” and how it can be beneficial for various individuals, including mom partners, part-time job holders, and even Uber drivers. He emphasized that anyone can use the book to manage their finances, whether it’s for personal use or for business purposes such as capital repair, vacation funds, or college savings.
About Ron Saharyan:
Ron and Mike Michalowicz debated how to help businesses that were seeking financial fortitude. Mike had the fix: Profit First. Ron had the plan: Profit First Professionals. After their twelve-minute discussion, the decision was clear, the Profit First Professionals organization was to be created. Having built multiple companies in the staffing industry, Ron leads our membership of world-class accountants, bookkeepers and business coaches who guide entrepreneurs to the highest degrees of profitability. Ron has over 15 years of experience in managing organizational growth, is a thought leader in business cash flow management and is a popular speaker on the topic of, you guessed it, profit.
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