Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine

you need to understand these reports (or work with an accountant and bookkeeper who do), because they will give you a holistic view of your company; they are powerful and highly useful tools.

You must figure out the things that make profit and dump the things that don’t.

Profit is not an event. Profit is a habit.

essence of financial security: save your money and block access to it so it doesn’t get stolen—by you.

Subtract your material and subs cost before you divide by the magic number range to get to your ideal employee count.

For each full-time employee, your company should generate Real Revenue of $150,000 to $250,000 (ideally more, but this is the minimum).

Selling more is the most difficult way to increase profits, because in the best-case scenarios, the percentages stay the same; and in the worst-case more common scenarios, expenses generated to support sales increase faster, resulting in smaller percentages and a smaller profit margin.

Pareto Principle, commonly known as the 80/20 rule. For the history buffs: Vilfredo Federico Damaso Pareto was an Italian economist who studied the distribution of wealth in Italy in the late 1800s. He discovered that 20 percent of the Italian population owned 80 percent of the land. Then he looked at his garden and observed that 20 percent of the

The Pumpkin Plan