If you’re just starting your business, should you take the profit from it? Some experts will say you should, but there are also others who think you shouldn’t.

In today’s episode, Ken Greene welcomes Rocky Lavani to talk about the importance of taking profits out of a business up front, in order to protect oneself financially in case the business should fail. They also discuss the difficulties of taking simple actions that lead to success.

Ken and Rocky talk about the book, Profit First, and how it can help business owners to better manage their finances. Rocky explains the principle behind Profit First, which is that businesses will use up whatever is allocated to them. He says that entrepreneurs often throw time and money at problems instead of thinking through them. He advises small business owners to follow a simple system consistently in order to increase their cash flow.


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Show Notes

  • A must-read: Profit First by Mike Michalowicz
  • Being simple is hard
  • The pros and the downsides of being an entrepreneur
  • Islands of Profit in a Sea of Red Ink by Jonathan L. S. Byrnes
  • The process of becoming a certified instructor
  • Impact of Parkinson’s Law on businesses
  • Different ways that business owners can save on taxes
  • Benefits of a profit-first business model
  • Defining what you want in business and in life
  • Hiring a tax professional
  • Advantages and disadvantages of incorporating a small business
  • Dangers of capital gain taxes
  • Delayed gratification in business
  • Benefits of getting your hands dirty in business
  • Best ways to reach out to Rocky Lavani

 

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