Rocky Lalvani, an advisor to small and medium-sized businesses, shares his insights on the Profit First method and how it can be applied to businesses of all sizes. He emphasizes the importance of focusing on profitability and making profit a driver rather than an afterthought. Lalvani explains that Profit First involves allocating money for specific purposes, such as profit, owner's pay, taxes, and operating expenses. By doing so, businesses can ensure that they have the cash flow to support growth and make informed investment decisions. He also highlights the need to measure and track the return on investments and the importance of understanding the cash flow implications of scaling a business. Lalvani also highlights the need for entrepreneurs to make hard choices and let go of employees or projects that are not driving profit. He explains how these principles can be applied in different business situations, including during market dislocations or crises. Additionally, Lalvani discusses the intersection of spirituality and business, emphasizing the importance of living in alignment with one's beliefs and values. Takeaways - Profit should be a driver in business, not an afterthought - Allocate money for profit, owner's pay, taxes, and operating expenses - Measure and track the return on investments - Understand the cash flow implications of scaling a business Focus on profit from the start and manage cash flow effectively - Make hard choices and let go of employees or projects that are not driving profit - Apply profit first principles in different business situations, including during market dislocations or crises - Explore the intersection of spirituality and business and live in alignment with one's beliefs and values --- Quotes “I think in many cultures, people don't talk about money. It's a taboo subject. People don't ask questions about money.” “I was shocked to learn that business owners were really bad with money.” “I don't believe in grinding it out.” “As a kid, I just knew I wanted to be wealthy. And so I would read and learn and figure stuff out.” “Why don't we do sales minus profit equals expenses. Now, profit is the driver and we constrain our expenses.” "Profit First makes sure that the taxes are there, the profits there, your pay is there, and that you're appropriately taking the right amount of money out of the company." "Growth requires cash. And if you don't know how much cash you need to grow your business, you can grow your business and quadruple it and run out of cash." “Most bookkeeping is not up to date. It's always behind... So this bank account shows you how much cash came in. And at the end of the day, that's what matters.” “Business owners are resourceful. The problem is they're also lazy.” “The problem is the P&L doesn't equal cash.” “Wealth is built on the balance sheet and it's an area nobody talks about.” “Hoping and dreaming are not profit levers.” “One of the top reasons for bankruptcy is scaling and growth.” “As long as cash is flowing, you can keep going.” “Everyone wants complicated solutions… Just do si...