August 27, 2025 • 39 mins
In this episode of the Wealth Wisdom Financial Podcast, Brandon Neely sits down with Ron Saharyan, Co-Founder and Managing Partner of Profit First Professionals, to talk about the heart of small business success, cash flow, profit, and building a business that works for you instead of draining you.
Ron has over 20 years of experience in scaling organizations, from running companies in the staffing industry to building Profit First Professionals from Mike Michalowicz’s basement in 2014 into a global network of accountants, bookkeepers, and coaches who are transforming the way entrepreneurs handle money.
Known as “Obie Ron” inside the Profit First community, he’s a go-to expert on sales systems, hiring, scaling, and operations. Beyond the business world, he’s a proud husband and father living in New Jersey, with a passion for sports memorabilia and cars
Together, Brandon and Ron dig into:
🔹 How to design your cash flow to not only eliminate financial stress but also fund the life you actually want.
🔹 The principles behind Profit First and why so many business owners get cash management wrong.
🔹 Ron’s personal journey of building and scaling businesses, what worked, what didn’t, and what he’d do differently.
🔹 Practical tips on hiring, systems, and operations that keep your business healthy and profitable.
If you’ve ever felt like your business is running you (instead of the other way around), this conversation will give you clarity, inspiration, and a practical roadmap to put profit first, literally.
00:00 Welcome to Wealth Wisdom Financial Podcast
00:47 Introducing Ron Saharyan: The Man Behind Profit First
02:32 Star Wars vs. Star Trek: A Fun Debate
04:34 The Impact of Profit First on Our Business
05:54 Ron Saharyan Journey to Profit First
11:15 The Importance of Financial Systems in Business
11:45 Overcoming Common Business Challenges
13:44 The Power of Profit First Principles
18:22 Expense Challenges and Financial Clarity
21:20 Starting Small and Building Muscle Memory
21:36 Facing Challenges and Strengthening Mental Fortitude
22:08 The Importance of Accountability and Learning
23:20 Implementing Systems for Financial Control
24:23 The Role of Professionals in Business Success
25:39 The Benefits of Profit First Certification
26:55 Understanding Financial Strategies and Systems
33:04 The Fundamentals of Business and Profit First
35:45 Encouragement and Final Thoughts
Watch on YouTube: https://youtu.be/8sBi3jjhQy4
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:01):
Hey guys, welcome to Wealth WisdomFinancial Podcast, YouTube channel.
Uh, as you know, we've been doingmore interviews lately and less
of Amanda and I, uh, talking.
'cause you know, you, you got,I know you guys love hearing us.
Um, but, uh, right now, uh, we'vebeen doing more interviews and
today I get to interview somebodythat you might not know helped.
(00:25):
Um.
Build, uh, this book here,if you, uh, this one.
This one right here, profit first.
So Profit first is something we love.
I think most businessowners are not profitable.
Uh, if you ask me, mostof them are faking it.
They say they are, or they just talk abouttop line revenue, not about the rest.
(00:47):
And so today I get tointerview, um, Mike's.
Better half in the business world.
Uh, Ron Sharran, he's theco-founder and managing partner
of Profit First Professionals.
He has over 20 years of experiencemanaging, organizing, growth, and
built, um, multiple companies.
(01:09):
In the staffing industry prior tolaunching Profit First Professionals.
And of course he lives in New Jerseywith his wife, Mary and his daughter.
So, um, it's always fun to talk to,you know, the, the head person or,
or the, I don't know what I call the,um, the, the face of organizations,
(01:34):
but, but really, as you know.
Most of the time the face doesn'tactually do all any of the work.
It's, it's the, um, the people behind it.
And Ron is, uh, that person thathas really built, uh, profit first.
So welcome Ron.
Um, no offense to Mike.
(01:54):
Mike is amazing.
Um, you know, I, I know you, Mike's gothis hands dirty in this thing as well too.
Yeah, yeah.
But thank you for the warm introduction.
Yes.
I, I am the wizard behindthe screen, as they say.
Yeah.
People don't know, and they'relike, oh, the wizard, uh, that
who's, who makes all that happen.
And you're like, yeah, Miketalks to Ron about Ron or Obon.
(02:14):
Yeah.
Well, I am a, uh.
I am a certified, uh, JediKnight, so, oh, there you go.
I'm a Jedi Knight.
Of course.
And when you're a Jedi Knight, yougotta get your lightsaber, so Yes.
There you go.
My lights saber right there.
Nice.
Well, and I, I will tell you, um,before we get into profit, um, there's
(02:37):
a huge debate, uh, in our household,uh, the Star Wars versus Star Trek.
Mm. And, and my wife and, and.
Don't hold this against her.
Um, she is not a Star Wars fan.
Um, she is a Star Trek fan, so we saylive long and profit, uh, all the time.
(02:58):
I love that.
And I, yeah, well that's moreof ours because she's like,
I, the dialogue is better.
Um, and Star Trek also, uh, when itcomes to Star Trek, she's like, we
were watching it, one, one of the, uh,remakes and it was Captain Kirk and
(03:20):
Spock, and she's like, I get it now.
Your Kirk and I'm Spock.
I love it.
Love it.
That's why I like it.
And I think in, uh, profit First, Idon't know what page it is, but um.
I believe Mike talks about CaptainKirk, um, and, and how that's how
(03:44):
we run our businesses and not Spocklike, yeah, I don't know what page
you probably do, but, uh, no I don't.
Somewhere in there, uh,as you guys are, uh, wa.
Uh, reading the books and you shouldgo back, read this book, profit.
Oh, and by the way, Brandon, I'vegot 10 free books for your audience.
So, um, if anybody who's listening tothis doesn't have a copy of Profit first
(04:07):
all you have to do is email Brandon say,Hey, uh, I want a copy of profit first.
For the first 10 that do this.
Brandon will email me, uh, your contactinformation, and I will personally
gift you a copy of Profit First.
Did you just hear?
You guys just hear that?
He'll send you the book.
So there is no excuses, uh, in learningto be more profitable in your business.
(04:30):
Yeah.
Uh, so, uh, use thattake, take that offer.
Um, I will tell you, uh,and I want to make this, um.
About you guys, but I willtell you how it impacted us.
So I remember listening to, um, uh,the podcast, uh, that you guys had, uh,
this was in, I don't know, 2017 or so.
(04:53):
We still got it.
Yep.
So, so it was like, he said, if youwrite a review, I'll send you the book.
So I was like, amazing.
I'm gonna write a review, get the book.
So then I got the book, uh, for free, uh,put it under the Christmas tree, wrapped
it, uh, and, and my wife's like, thisis the best gift you've ever given me.
(05:17):
I was like, wow, this is amazing.
I'd even.
Spend any money.
Um, all I did was write a review.
So again, take that, itcould change your life.
Awesome.
Thank you.
So Ron, take us to the way back.
Why did you go into this?
Then I wanna know.
Okay, so now we've, you've started,I want you to tell that little story.
(05:42):
Mm-hmm.
Then I want you to tell us where fastforward, where people are missing it now.
Yeah.
The book is here, but, but is everybody,it's, it's not embraced all the time.
No, it's not.
Um, but so my, my background, um,really quickly is that I've changed
the channel a couple of times.
I started my professional career out asan investigator for the public defender
(06:04):
service of Washington dc Uh, felony ones,murder, rapes, arsons, wasn't too fun.
So I different, different than.
What you do now, thenworking with accountants.
Yeah, yeah.
Right.
Um, changed the channel.
Got into professional staffing.
Okay.
It staffing and I was really goodat it, but what I really enjoyed
doing is taking that company andcreating niche specialties with it.
(06:27):
Mm-hmm.
So I specialized in, uh, engineering.
Okay.
At that particular time then I wasin that industry for about 15 years.
And, uh, over those years I workedat two to three places Each time
I would look to get that companyto, its all time high in revenue
consultants on the street and margin.
Okay.
And I would apply a similarprofit first principle.
(06:49):
And so, um, you know,what was happening was.
I was getting tired of making money forother people and um, I was, I got this
company in New York and we specialized inmedia and entertainment, so I had a lot
of cool companies I wanted to work with.
That's another thingabout niche or nicheing.
You get to pick the industrythat you wanna work within.
So I like sports, as you can see.
So I was working with ESP.W-W-E-N-F-L-M-L-B, all of the
(07:13):
sports, you know, things out thereas well as I love television.
So H-B-O-A-A and E, things like that.
Well, I got the company to, its all-timehigh-end revenue and we were told we were
done scaling and that's what I love to do.
I love to scale.
I like to help people.
I like to grow, I like to coach,I like to do all of this stuff.
So.
I put out my feelers 'cause Isaw the writing on the wall.
(07:34):
Mike Malowitz, the author ofProfit verse and many other
books, is a good friend of mine.
We grew up together, uh, high schooltogether, grade school together, played
on the same sports teams over those years.
When I was working in staffing in otherindustries, Mike was always recruiting me.
Okay.
So when I threw my feelers outthere, he said, Hey Ron, I'd
like you to read my manuscript.
I said, here we go again.
(07:55):
I read it and I was like,holy shit, I love this.
And by the way, I do this.
He's like, what do you mean you do this?
I go, you know, most companies when theyhave, um, you know, the figuring out
their formula, their profit formula, allof this, their margins, their mm-hmm.
Burdens taking it into consideration.
So for staffing has a particularformula, direct labor.
(08:17):
Times burden divided bymarkup equals the bill rate.
Yeah.
That's what you go to the company, theclient with and No, no, no, no, no, no.
I want, I always tacked onanother profit on top of that.
So I was always the most profitable salesguy, always the most profitable division,
uh, branch office, because I was alwaysadding profit on top of everything else.
(08:38):
Right.
Yeah.
And then on the flip side, whenI would get a major contract,
say it was a $300,000 contract,I wouldn't tell the recruiters we
have $300,000 to find 10 people.
I'd say we have 200,000.
Let's see what we can do.
Always holding back a littlebit of profit on initiatives
and various things like that.
Yeah.
And so I shared that I alsogrew up on grandmother's
(08:59):
envelope budgeting methodology.
Right, right.
Something that you guys love.
Um, I had, I had, um, well my parents hadfood, clothing, you know, um, ran church.
Okay, so I, I, I kind ofgrew up on that stuff.
So when I read this, I was like, holy cow.
Mike said, Hey, we gotta getthis into all the business hands.
(09:20):
I said, absolutely.
How about we get it into the hands of achannel of accountants and bookkeepers
and coaches, and how about them?
Our niche?
So that was from thebasement is of his house.
In 2014, all we had was a phone,a computer, a. Book and an idea to
now we're, um, the largest brandon small business profitability.
Over a million copies of thebook sold 30 different languages,
(09:43):
19 different book derivatives.
We're in 40 different countries and wehave been eradicating entrepreneurial
poverty for, uh, close to 11 years.
The bottom line, Brandon, is whatyou're teaching as a certified profit
First professional as a. As a, uh,life insurance expert benefit, you
know, be your own banker expert.
(10:05):
This, this is perfect for those businessesthat want financial clarity, that are
sick and tired of paying themselveslast sick and tired of not having
their expenses and control and haveno idea how to pay down their debt.
This is the solution, right?
Well, and as I work with people,this, I mean, I, I know it.
(10:26):
You're preaching to the choir here.
Yeah.
Uh, and I see it.
That's, that's how, and I didn't realizelike you, it had started so early,
whenever we captured it in 20 17, 20 18.
'cause we had started our.
Business in 2011, thecoffee shop business.
Yeah.
And just were like, oh wait.
Um, we did all the books thatwe were supposed to, the, the
(10:49):
Susie Orman books and we're like,wait, this is not working for us.
Yeah, this is, this is not healthy.
And, and, um, we had flipped and madesure we paid ourselves, uh, not waiting
until the last day, but on the first day.
Right.
Yeah.
Uh, and, and those little,little flips helped us to.
Ultimately sell the businessand not close the business.
(11:11):
Well, the beauty of what we'retalking about is systems.
Mm-hmm.
So everybody who's listening outthere realizes the need for systems,
delivery systems, fulfillmentsystems, hiring systems, firing
systems, you name it, we need systems.
But let me ask you.
Explain to me your cashflow system,Mr. Business, Mrs. Business owner.
Tell me the system that youraccountant or coach has shared with
(11:35):
you that they implement in theirown business for financial clarity.
Yeah, so.
If they don't have anything,get somebody that does.
So, so that leads me as I've beenworking this and I kind of see it and
know most people are chasing sales,most people are chasing, uh oh.
(11:56):
Well I have a. Eight ornine figure business.
And you see that on TikTok, you see iton YouTube, you see all this stuff and
you've run into a lot of businesses.
Uh, you've seen them, they finallycome to you after they, they, they did
a sales coach and they did all this.
'cause they think if I have more sales,then I'll be i'll, I'll reach my.
(12:20):
My thing.
Right.
Whatever.
It's, yeah.
And so oftentimes they come to usafter they've done all those things
and we're like, man, you shouldhave came to me five years ago.
Um, that would've helped.
And then they say, I wish Iwent to you five years ago.
Yeah.
Yeah.
And, and so how do you overcomethat objection when people are
(12:40):
in the I need to grow mode?
Yeah.
Uh, and they're like, well,I need to keep up with the.
The, uh, TikTok star and theyhave a eight figure business,
how do you tell them or sh.
To, I don't know, help themsee right then and there.
Yeah.
Why they need a system.
So there's a lot of YouTube,Facebook Voodoo out there,
(13:02):
TikTok Voodoo is what I call it.
Um, statistically speaking, um, 83%of businesses are check to check.
You know, that's a study by thesmall business administration.
So basically.
Every person you see on TikTok exceptfor a select few is actually profitable.
A lot of these may be generating highrevenue, but they're spending it.
(13:23):
Most people, I'll talk to 'em.
Yeah.
As their sales.
Rise.
So do their expenses.
They sell, sell, sell, manage theirexpenses, but the expenses are
keeping pace of the, um, of the sales.
But what's happening is you're spendingall of that money and you don't have
any sort of behavioral intercept to stopyou from doing the same thing you've
been doing over and over and over.
(13:44):
That's why if you're looking to scaleor grow, you need systems, okay?
Mm-hmm.
And the most importantif, if, if cash flow.
Is the most important thing to abusiness, and you do not have a
system to manage the cash flow.
What is that telling you?
There's, there's, you, you, you,you're gonna be struggling forever.
That, that's the beauty of profit first.
(14:05):
It's not accounting, it's not bookkeeping.
It's a system that residesbetween financials, which
are historical documents.
In forecasting, what'syour hopes and dreams?
And here's another thing.
Screw them.
Who cares what they're looking like?
Be the best you can be, right?
That's what it matters.
It doesn't matter what whatthey're doing out there.
(14:27):
It's what are you doing for your family?
What are you doing for your friends?
What are you doing for your employees?
Right?
What are you doing for your customers?
Have a customer centric focusversus a sales centric focus.
'cause if you're all you're going after isthe sales, you might get there, but you're
gonna be missing a lot of opportunity andprobably not necessarily leveraging your
(14:48):
own business to get the most out of it.
Uh, I think that that'sa mic drop right there.
I mean, like, we could end the podcast.
Uh, right.
But, uh, as I think about this and,and talk to, to clients and, and
business owners, they're, they're alwayslike, I'm, I need to go make this.
I need to go do this and, and increase.
(15:09):
And, and I, I try and tell people allthe time, they're like, well, I have
a, I, I, I got my finances in order.
I got my CPA.
That tells me how this,I'm like, well, one.
They are not, they'renot cashflow strategists.
They are your tax person.
They're not business advisors either.
Business advisors.
Yes.
Uh, and I'm like, maybe youneed you, they're gonna just
(15:32):
help you maybe save taxes today.
So they say, go buy that stupid, um, gwa.
Yep.
Uh, because they'll save on taxesand then they don't think long range.
And I think that's a challenge inour industry where people are like.
Uh, quick wins, quick fixes.
Uh, if your accountant is telling you togo out and buy a truck that you really
(15:54):
don't need, but you want, um, to minimizeyour taxes, that's a bad accountant.
Okay?
Yeah.
What that accountant should be doing issaying, Hey, you've got $50,000 in profit.
Let's take a look at a marketinginitiative that you know, that you
tested that you gotta return on.
Yep.
Why don't we take that 50grand and double down on that.
Hey, you got 50 grand.
You have a fulfillment issue.
Why don't we invest that in a new employeethat can handle fulfillment, right?
(16:18):
And so, you know, there's differentways to minimize your taxes other
than occurring material stuff thatreally isn't for the benefit of
the company, but you can justify itby pulling the wool over your eyes
and put it as a business expense.
And, and this is why I love Profit First.
Right.
And, and why I love what you talk about.
(16:39):
Right.
So you're combining both theenvelope method kind of idea Yeah.
Of living within our means.
Yeah.
Right.
And not spending like drunkensailors, uh, but we're told just
get a PPP loan and, and do allthis other loan stuff or whatever.
And then we're, we're addictedto, to the banking system that is
(17:01):
gonna raise prices, raise costs.
You know, one, you makea great point there.
If you're living off your credit,if you're living off of, um, you
know, your, your lines of creditif you're living off a loan.
So that's a systems problem.
Mm-hmm.
There's a, it's a business problem.
You know, those are great injections.
Those are great safety nets.
But if you're constantly drawingon that, you've got a pricing
(17:22):
issue, a margin issue of.
Billman issue.
You've got other things going on there.
And one of the things about ProfitFirst, that's so good, when resources
are less, okay, we're gonna be moreinventive, we're gonna be more creative.
We're gonna try to do more with less.
Additionally, when things are rockingand rolling and we're grooving and we're
grooving, it's an early warning sign.
It's an early warning sign of thingsthat you know may happen because
(17:46):
on the 10th and the 25th, you'renow in tune with your cashflow.
Yeah.
Imagine being in line withyour cashflow every week.
You know what comes in, goes out,and if you have a phenomenal.
Couple of weeks.
Two weeks goes in there, yougot all this money, you're like,
holy cow, what the heck happened?
Meanwhile, most people are gettingtheir financials 30, 60, 90 days.
(18:06):
They're not really looking at 'em, andif they do, you know, they say, holy cow,
look at this spike that we had in June.
What happened?
Meanwhile, it's October.
And they don't know.
Right.
And that, that's ofunderstanding our numbers.
Um, I, I like that we talk andyou guys talk about, uh, us too.
(18:28):
Uh, the expense challenge.
So even if you're profitable.
Going through and doing an expensechallenge and being able to say,
okay, what do I, what am I spendingmoney on that I, I don't know.
Just because I'm profitable doesn'tmean I should spend 20 bucks
on a service that I don't use.
I had a company that was spending$80,000 on flowers and perfumes
(18:51):
to make the office smell good.
And I mean that, that's for me.
I'm like, I could use that 80 anyway.
Yeah, yeah, yeah, yeah,yeah, yeah, yeah, yeah.
But that's what happens when things aregoing well and you have larger revenues,
a lot of things get embedded and hidden.
Yeah.
And if you're, and the problem is whenyou're grooving and you're grooving,
and you're grooving, if you're not,if you're in that groove too long,
you look up, you're in a rut, and thecompetition has just passed you by.
(19:15):
Yep.
Right?
And so that's why you needthese systems of clarity.
Yeah.
And they don't, the expense challengethat we do is usually, like we did
in the coffee shop every uh, year, wewould say, what's working, what's not,
let's what's, what's raised prices.
And we have those systemsusing like the EOS method Yep.
Of thinking through and making sure we dothose on the quarterly or annual basis.
(19:40):
Right.
But then I'm a big fan of Perry Marshall,the 80 20, um, sales and marketing guy.
Yeah.
We understand.
One is what's the drag and what'sthe levers that are moving?
And if we have the right cash flowsystems and we know, hey, because what
(20:00):
you just said, I know something happenedJune, that RO rose our capital a lot.
Right?
Something happened That was really good.
Guess what I'm gonna do?
I have my money ready, I might.
Double in on the 20% that actuallymatters and drop the 80% that doesn't.
(20:21):
Right.
Product profit analysis, it'll alsoshow you, you know, what products
are moving faster than others.
And you know, you're,you're, you're right, vanity.
Vanity is the, the revenue, but what youput in the pocket is really what matters.
Yeah.
And so, you know, when, whenbusiness owners, you know, they.
Statistically, some people listeningare gonna say, I can't do this.
(20:42):
I'm not profitable.
I'm not making money.
Yes, you can.
Okay.
The path may not be clear, butyour next step is, and that is to
reach out to Brandon or somebodyon his team to actually help
you navigate these challenges.
Mm-hmm.
It's not difficult.
What's difficult is actuallybeing open to new ideas.
New technologies, new things, okay.
(21:03):
Yeah.
But once you're open to thesethings, that's the first step.
The next step is actually strengtheningyour mental fortitude to get through
the suck of learning that new.
Thing, right?
Yeah.
So Profit First is gonnabe new for you, okay?
And so, you know you're gonna start small.
We can't just go to the the gym andput on 300 pounds on the bench press.
(21:24):
It would crush me.
I couldn't do it.
Yeah.
So we're gonna start out small.
We're gonna build that muscle memory.
We're not gonna upset the apple cart.
You're gonna get going, you'regonna get going, and you're gonna
gamify it, and you're gonna havefun and you're gonna play with it.
But here's the thing.
You are not gonna know how to do it.
It's gonna be conceptually simple to you.
Yeah.
But when you actually get down tooperating it and when things get
(21:46):
tight, when you see your opex goalmost to zero, you're gonna freak out.
Right?
It's, this is when we needto strengthen our mental.
Fortitude.
Okay.
Yeah.
When the learning getstough, that is smart.
That's when your synapses are rehiring.
You're learning, you're growing.
But that little devil issaying, go back to the easy way.
You don't need this profit first stuff.
(22:06):
You can't do it.
It's you're not, blah, blah, blah.
That's where you work with anaccountability coach, a partner, somebody
that says, yes you can and you can do it.
And so the example I I share is.
TikTok, right?
When my daughter first got her phone,she was around eight or nine or
something like that, she'd be like, Hey,daddy, you know, take a look at this.
(22:26):
I'd be frustrated because if you takeher forever to learn the phone, then
she'd do the dances and they'd suck.
And then eventually she got good, and theneventually she got good with the phone to
now where she does, she knows what she'sdoing on my phone more than anything else.
She actually just startedhere not too long ago.
Right.
And so she'd been learning, she'd learnedand she's like, hold on, dad, time out.
Let me do it again.
(22:48):
Can you imagine if she didthat with learning Spanish?
Yeah.
Or, or learning.
Yeah.
Anything like learningyour business like that.
Don't judge me.
She learn.
She started takingSpanish at the same time.
Okay.
She didn't put forth.
She knows she's better than me, butshe didn't put forth that effort.
She couldn't see the results.
She didn't enjoy the sock oflearning this new language.
(23:10):
Now, we just got back from vacation wherewe're predominantly, we were in Ecuador.
They speak Spanish.
Yeah.
Now she realizes that she wishes thatshe had that opportunity back to go back.
Well, this is your opportunityto revisit history, everybody.
Okay?
Mm-hmm.
Right.
You can go back in time and you canactually implement this system right now.
Okay.
(23:31):
Structurally, that willprovide you with relief.
Then when you're actually acting onthis system under the guidance, you're
gonna start to feel empowered becausefor the MO first time, many of you
creatives and stuff are in controlof your money for the first time.
Imagine that power.
You're in control of it.
You're moving it.
(23:51):
Then since you haverelief, you have a plan.
You're empowered.
Next is like.
Boom.
I'm focused on growing this badboy because the system is taking
care of everything behind us.
Right.
I think that's where a lot of people,they, they just don't know where to go.
They're, they're kindof like, I don't know.
I don't know if I'd say sleepwalking.
(24:11):
'cause they're business owners.
They are, are moving, they'rejust on that hamster wheel.
Yeah.
And, and they're like,well, I just don't know.
I know how to slingingsling a hammer, not.
Uh, do this and, and they're good at that.
And so that's where havingthe right people, teams,
systems in place, uh, is huge.
And honestly, as a, as a, um,infinite banking practitioner
(24:36):
and, uh, profit first, uh, it'skinda like a heart surgeon.
I, I know what I'm looking at.
I can see a tax return and be like.
What the heck is going on here?
And also, you didn't just readthe book and decide to, you
know, implement this thing.
You know, you went throughcertification, you went through
testing, you went through courses.
You're implementing it, you'reexperiencing it, you're showing, I mean,
(24:57):
oh my God, there's people that have readthe book and are trying to implement it.
Accountants are trying to implementit and it can ruin a business.
Yeah.
So if you've tried to selfimplement and you said, oh, it
doesn't work for your business.
You did it wrong.
If your accountant is chargingyou a boatload of money because of
the reconciliations of all theseaccounts and telling you this,
(25:18):
that they're doing it wrong, right?
Yeah.
I would never read a book on, youknow, how to be a chiropractor
and then say, Hey, Brandon.
You know, I'm starting a biz andwant me to crack your back for you.
And that, that's why I thinkwe're like, my wife is A CFP.
Yeah.
So we understand that world.
(25:39):
Um, we are profit first.
We got profit first certified because we.
Right after COVID and we're like, ohmy gosh, this is gonna be a nightmare.
Um, and so we, we became Profit Firstcertified 'cause it affected us.
We are banking yourself an infinitebanking certified because there's a
lot of people who are using insuranceand they're, they're saying, I
(26:02):
read, I read Nelson's book and,and it's, I'm gonna just do it.
And they're like, no, that'snot, no, you can't just do that.
Right.
And, and I know, and uh, and so I know.
As I work with my clients and I'mlike, you know, you have, you have
all this money in, in liquidity.
On your business side, but you're,you're, you have a credit card
(26:25):
and over here how to, to kindof see that and, and capture it.
Right, because I, I see all the timethey're like, well, I made 12% on my
401k, uh, but they're spending 18%on credit cards, and you're like.
And then I don't think you're winning.
Yeah.
And that, that, that per that, whateverthey think they made, they gotta
(26:46):
take out fees, they gotta take outtaxes, they gotta take out everything.
It's very small.
Um, you know, I, I like havingmultiple legs of a stool.
Right.
Yeah.
You know, like, and that's anotherthing about, you know, somebody might
be listening, I'm profitable Ron.
I'm making a couple hundred G's,I'm making this, I'm not worried.
I got my mortgage paid off,blah, blah, blah, blah, blah.
Awesome.
Okay.
That's today.
Yeah, but are you properly insured?
(27:08):
Yeah.
What is you, are you a deca millionaire?
What does your, you know, 401k look like?
What are your alternativeinvestment strategies?
What about your stocks,bonds, mutual funds.
What about, you know, another in incomeflowing type of, you know, real estate?
What about your kids?
You wanna send 'em to private school?
You wanna send 'em to Ivy League school?
You wanna send them tospecial needs school?
(27:28):
What about your parents elderly care?
You know, I just went through this shit.
It's, you know, a hundred.
$20,000 a year out of pocket.
It's like, what the heck?
Right.
And so, you know, all the, thebeauty of profit first is that you
can prepare for the future today.
Yeah.
And that's the beauty of it.
When things are going well, this is whenwe need to arm ourselves for the future.
(27:49):
Most people are, when they're doing well,they're doubling down on their business.
Yes, I get that.
And Profit First is a growth strategy.
It's also number one seenas a fix-it strategy because
most businesses need fixed.
But once you get done with that fix,you know, you're able to architect the
bank accounts to not only eliminatethe pains, but achieve the wants.
That's the other side.
(28:10):
Most CPAs, uh, bookkeepers, controllers,you know, they're, they're not,
they're trying to help you stayoutta jail, provide you with updated.
Chart, drafts, documents, stuff like that.
You don't use any anyway, okay.
This, this is, this is adifferent way of going about it.
Well, and then, uh, I've, whenI talk to my tax guy, um, I
(28:31):
have two sets of books, right?
My profit, first books,and then my tax books.
Uh, and he's like, why do youdo not many people do that?
I'm like, well, because thosesay different things for me.
It's so funny you say that, Brandon,you're nailing it right on the head
because I've had people call me andsay, Ron, my CPA, they're telling me.
No, my owner's pay should be this.
(28:52):
My distribution should be that, that this,this, this and that, and blah, blah, blah.
I'm like.
Good.
You've got a good CPA.
They're actually working the taxcode because now you have money.
Yes.
So my CPA Keith, he doesn't carehow many bank accounts I have.
He doesn't care what the nameson those bank accounts are.
(29:13):
He doesn't care at all.
Yeah.
What he loves is when I push a boatload ofmoney over to him that he can say, okay.
Great.
Okay.
Blah, blah, blah, blah, blah.
Hey, all right.
We're doing this.
We're front loading this,this we can take off of this.
That's the fun.
If you're not making any money,you're not paying any taxes, but
I guarantee you're not having funeither, and that that's been really
(29:36):
sophisticated and you're leveraged andyou're doing crazy wackadoo stuff that
most of us aren't gonna do anyway.
That, that's been thefun of what, what we do.
And, and I've used my infinitebanking policies as I've made profit.
Nice.
To take a loan and buy myoffice, uh, condo, right?
Yeah.
And then, uh, what'sbeen hard is I'm like.
(29:58):
Hmm.
I want my opex, my pay to behigher and my opex to be low.
And my tax guy's like, well,you need to raise your rent.
I'm like, I don't wanna raise my rent,but I know how it, it looks differently on
the tax thing and I don't get taxed on it.
So then I'm like, well, you know, I,you know, it's a show game at that.
(30:18):
It's a shell game at that point thatthey're trying to do, is just categorize
things in a way that are legal, that, youknow, allow us to, you know, spend more on
the business for legit business purposesand put more in our pocket for, you know.
The right reason, which is fun becausealso as I do that and own the office
and, uh, understand the principles,then I know that he may not right.
(30:45):
Um, and, and we're ableto, to build on that.
And so that's why I love,uh, the profit first system.
Uh, people will say, well.
It, it is too many bank accounts.
I'm like, well, you know, as, as Mikesays, you know, if you go to Thanksgiving
and you'll eat a lot more food, uh,because the plate is bigger, what we're
(31:06):
just saying is make smaller plates.
Well, I, I'll even break it down.
Simpler than that, how's theway you're working so far going?
Yeah, there you go.
It's that simple.
It's like, listen, we're here.
We have the keys to the Ferrari,and we're gonna teach you how to
drive it so you don't smash it.
Okay?
But your business is too different.
(31:26):
Bullshit.
No, your ego is just inyour way, quite honestly.
Okay.
Oh, I can't do this.
It doesn't work.
Well, then you have limiting beliefs.
Yeah.
I'm not here to put lipstickon any pig out there.
Okay.
It's that simple because all you're gonnado is piss off the pig and frustrate me.
So you know what?
If you don't think it will work,it will not work in your business.
(31:46):
Guess what?
It will not work in your business.
But here's a guy that's tellingyou that he's implemented this
system in pretty much every, oh.
Thousand of accounting firms in over 40different countries who's helped all of
them implement Profit First, not onlyin their business, but all of their
customer businesses across the globe.
This is from a hundred milliondollars companies to startups to $50
(32:08):
million law firms, 25 million biotech,15 aviation coaches, bookkeepers,
everybody can benefit from this.
We even have it for athletesProfit first for the pro athlete.
Well, and let me ask you this, like,as, as, um, and as we're wind down
here, um, I know that Profit Firstis, is a game changer a lot of times.
(32:31):
You know, you see, you said this, 83%of small businesses, uh, fail the, that
you probably had these conversationsall the time, like, yeah, but yeah.
Um, it, it doesn't work for me.
And, and you're like, okay,here's what, what needs to happen?
Um, what's been the biggest.
A roadblock.
And then on the flip side, um, peoplesay, well, it's good for small businesses,
(32:56):
or It's not good for startup businesses,or it's not good for big businesses.
Yeah.
Speak to that because I know that.
Yeah.
So, so, you know, let'stalk about fundamentals.
This is fundamentals.
This is a fundamentalsystem in every business.
So, you know, um, I don't care whenyou first start learning a sport,
you need to learn fundamentals.
(33:18):
When you're in high school, you'restill practicing fundamentals.
Michael Jordan, on all those guys,they still practice fundamentals.
Okay?
So you're not so different if you'renot practicing these fundamental.
That's a problem.
Okay.
And so your business is not thatdifferent, and we can show you how to
build up that profit versus memory.
We, uh, muscle memory, I shouldsay, and, and to do it in a way is,
(33:42):
is very similar to the 401k guys.
Why isn't the numberone savings out there?
Because they remove it from take it offthe top and remove it from temptation.
Yep.
Huh?
Wait a second.
You mean if I take money off the topand I put it away and I can't get it?
'cause it's hard to get to.
That'll grow and I'll still live mylifetime, my lifestyle the same way.
(34:02):
Yep.
So, right, so start with one account.
Start with one account, put 1% in there,and then start stacking it, right?
Can you still pay your bills afterone 1% going into a tax account?
Yes, can the 2%, 3%.
This is where you can model out whatyou can do to figure out what your
(34:24):
starting percentages are, right?
You start with one, but hey,listen, by working with you or me
or somebody else, we can tell youwhat percentages to start with.
Okay.
But if you're gonna give it yourown, well then start with the
fundamental five bank accounts.
You can get them from Relay.
It was the biggest obstacle we hadto overcome is everybody had to go to
(34:45):
their bank and open up these accounts.
Well, COVID fixed that for all of us.
Yeah.
Okay.
So now the biggest reason fornot changing is now the setup.
Okay.
Oh, I gotta call this, I gottado this, I gotta do this.
Yeah.
No shit.
You gotta do some work.
To get paid.
Right?
And so if that means removing asystem and implementing a new one
(35:09):
that's gonna make you more efficientand effective, you need to do that.
And if you do not have a systemokay, for helping you provide
cashflow, clarity, well shame on you.
Yeah, that's simple.
I, I mean that, that's just right there.
It's like, all right.
Um, if you, you either need,if your system isn't working.
Change the system.
(35:30):
Um, we have no one to blame but ourself,I, I deal with 70 year olds and all
kinds of people, and they're like, Iwish that, you know, blah, blah, blah.
And I'm like, well, best time toplant a tree was 20 years ago.
Oh, right now?
Yep.
Um, and so let's, let's go ahead.
If you guys, uh, are, well, one.
He just said that you can get the book.
(35:51):
If you have not read the book,um, you can get the book for free.
Just email us, uh, Brandon,if you're in America.
Yeah, if you're in America.
Um, and if you're not in America,I made that mistake, Brandon.
I made that mistake and I had amail books all over this world
and it cost me an arm and a lag.
So, but yeah, if you're inAmerica, if you're not in America.
Um, well, we'll figure out else.
(36:13):
Yeah, it still works.
But email us.
Email me and then we'll, we'llget some books out to you.
Uh, also, um, rememberI want you the, this.
This, uh, 83% of small businessesfailing shouldn't happen.
Um, we got into businessto have financial freedom.
(36:36):
That that's oftentimes why we did it.
And we wanted to make a difference.
We wanted to change theworld, uh, in some degree.
And, uh, we left, we,we got into it to, to.
Make money.
And so if that's not happening foryou, talk to somebody like us and help.
We can help you right the ship, right?
(36:57):
It's not gonna be easy sometimes in,in business, I don't know if anybody's
been in business for more, more thana year, uh, or even a little bit.
Running a business is hard.
Uh, but as you build the rightsystems, it becomes easier and easier.
And so, um, that's what wewant to do to where that.
(37:17):
83 drops down to 80 to to 70 becausethe world needs us to succeed.
Yeah.
If we can help startups survive, right.
Make over the first year, make itto five years, make it to 10 years.
Right.
If we can reduce the failureof startups, people have jobs.
When people have jobs, it relieves alot of the stress from the home life.
(37:41):
Yeah.
Small businesses arethe backbone of America.
We have to focus on them.
First and foremost, this is the besttool that I've uncovered in 50 years
that provides financial clarity at thelevel that it does, and it's designed
for you, not for the accountant, not forthe bookkeeper, but for you, Mr. Mrs.
(38:04):
Business owner.
Exactly.
And that, that's it.
Uh, Ron, I appreciateall that you've done.
You've changed our life, um, by,um, coming alongside Mike and
getting that out in the hands.
Uh, and now we get to change the livesof countless people and just wait guys.
As, as we're, uh, we'vebeen growing our business.
(38:26):
We've been, we didn'teven talk about AI today.
I have.
But um, imagine, imagine.
Uh, all this knowledge and, andbeing able to have that dashboard
to be able to understand what to do.
Right away on your business to make thelevers, uh, move in the right direction.
Like that's where we want togo and where we wanna help you.
(38:47):
And I know Ron and his team,uh, they have tons of people.
If you don't have somebody,uh, in place, um, find them.
I am a coach, but we also know a lotof the bookkeepers and accountants,
uh, and we'd love to serve you in that.
Uh, any closing remarks there, Ron?
No.
Um, awesome.
(39:07):
You know, I like to leave everybodywith the, may the prophets be with you.
Alright.
I know that's a combo reference.
That's a combo.
Live long in profit.
Live long in profit.
May the profits be with you.
So I say that and it confusesthe heck out of people.
Yeah.
Oh, and everyone.
And it became, it was because of you.
(39:28):
When we saw that, we're like,Hmm, we're gonna change it.
Yeah.
Thank you.
We saw that on your emails.
And you didn't even know that.
But it's every email,live long and profit.
Uh, so guys live long and profitand may the profits be with you.
We are here, uh, to helpyou become more profitable.
Thanks again, Ron.
(39:49):
Thanks.
Hey guys, welcome to Wealth WisdomFinancial Podcast, YouTube channel.
Uh, as you know, we've been doingmore interviews lately and less
of Amanda and I, uh, talking.
'cause you know, you, you got,I know you guys love hearing us.
Um, but, uh, right now, uh, we'vebeen doing more interviews and
today I get to interview somebodythat you might not know helped.
(00:25):
Um.
Build, uh, this book here,if you, uh, this one.
This one right here, profit first.
So Profit first is something we love.
I think most businessowners are not profitable.
Uh, if you ask me, mostof them are faking it.
They say they are, or they just talk abouttop line revenue, not about the rest.
(00:47):
And so today I get tointerview, um, Mike's.
Better half in the business world.
Uh, Ron Sharran, he's theco-founder and managing partner
of Profit First Professionals.
He has over 20 years of experiencemanaging, organizing, growth, and
built, um, multiple companies.
(01:09):
In the staffing industry prior tolaunching Profit First Professionals.
And of course he lives in New Jerseywith his wife, Mary and his daughter.
So, um, it's always fun to talk to,you know, the, the head person or,
or the, I don't know what I call the,um, the, the face of organizations,
(01:34):
but, but really, as you know.
Most of the time the face doesn'tactually do all any of the work.
It's, it's the, um, the people behind it.
And Ron is, uh, that person thathas really built, uh, profit first.
So welcome Ron.
Um, no offense to Mike.
(01:54):
Mike is amazing.
Um, you know, I, I know you, Mike's gothis hands dirty in this thing as well too.
Yeah, yeah.
But thank you for the warm introduction.
Yes.
I, I am the wizard behindthe screen, as they say.
Yeah.
People don't know, and they'relike, oh, the wizard, uh, that
who's, who makes all that happen.
And you're like, yeah, Miketalks to Ron about Ron or Obon.
(02:14):
Yeah.
Well, I am a, uh.
I am a certified, uh, JediKnight, so, oh, there you go.
I'm a Jedi Knight.
Of course.
And when you're a Jedi Knight, yougotta get your lightsaber, so Yes.
There you go.
My lights saber right there.
Nice.
Well, and I, I will tell you, um,before we get into profit, um, there's
(02:37):
a huge debate, uh, in our household,uh, the Star Wars versus Star Trek.
Mm. And, and my wife and, and.
Don't hold this against her.
Um, she is not a Star Wars fan.
Um, she is a Star Trek fan, so we saylive long and profit, uh, all the time.
(02:58):
I love that.
And I, yeah, well that's moreof ours because she's like,
I, the dialogue is better.
Um, and Star Trek also, uh, when itcomes to Star Trek, she's like, we
were watching it, one, one of the, uh,remakes and it was Captain Kirk and
(03:20):
Spock, and she's like, I get it now.
Your Kirk and I'm Spock.
I love it.
Love it.
That's why I like it.
And I think in, uh, profit First, Idon't know what page it is, but um.
I believe Mike talks about CaptainKirk, um, and, and how that's how
(03:44):
we run our businesses and not Spocklike, yeah, I don't know what page
you probably do, but, uh, no I don't.
Somewhere in there, uh,as you guys are, uh, wa.
Uh, reading the books and you shouldgo back, read this book, profit.
Oh, and by the way, Brandon, I'vegot 10 free books for your audience.
So, um, if anybody who's listening tothis doesn't have a copy of Profit first
(04:07):
all you have to do is email Brandon say,Hey, uh, I want a copy of profit first.
For the first 10 that do this.
Brandon will email me, uh, your contactinformation, and I will personally
gift you a copy of Profit First.
Did you just hear?
You guys just hear that?
He'll send you the book.
So there is no excuses, uh, in learningto be more profitable in your business.
(04:30):
Yeah.
Uh, so, uh, use thattake, take that offer.
Um, I will tell you, uh,and I want to make this, um.
About you guys, but I willtell you how it impacted us.
So I remember listening to, um, uh,the podcast, uh, that you guys had, uh,
this was in, I don't know, 2017 or so.
(04:53):
We still got it.
Yep.
So, so it was like, he said, if youwrite a review, I'll send you the book.
So I was like, amazing.
I'm gonna write a review, get the book.
So then I got the book, uh, for free, uh,put it under the Christmas tree, wrapped
it, uh, and, and my wife's like, thisis the best gift you've ever given me.
(05:17):
I was like, wow, this is amazing.
I'd even.
Spend any money.
Um, all I did was write a review.
So again, take that, itcould change your life.
Awesome.
Thank you.
So Ron, take us to the way back.
Why did you go into this?
Then I wanna know.
Okay, so now we've, you've started,I want you to tell that little story.
(05:42):
Mm-hmm.
Then I want you to tell us where fastforward, where people are missing it now.
Yeah.
The book is here, but, but is everybody,it's, it's not embraced all the time.
No, it's not.
Um, but so my, my background, um,really quickly is that I've changed
the channel a couple of times.
I started my professional career out asan investigator for the public defender
(06:04):
service of Washington dc Uh, felony ones,murder, rapes, arsons, wasn't too fun.
So I different, different than.
What you do now, thenworking with accountants.
Yeah, yeah.
Right.
Um, changed the channel.
Got into professional staffing.
Okay.
It staffing and I was really goodat it, but what I really enjoyed
doing is taking that company andcreating niche specialties with it.
(06:27):
Mm-hmm.
So I specialized in, uh, engineering.
Okay.
At that particular time then I wasin that industry for about 15 years.
And, uh, over those years I workedat two to three places Each time
I would look to get that companyto, its all time high in revenue
consultants on the street and margin.
Okay.
And I would apply a similarprofit first principle.
(06:49):
And so, um, you know,what was happening was.
I was getting tired of making money forother people and um, I was, I got this
company in New York and we specialized inmedia and entertainment, so I had a lot
of cool companies I wanted to work with.
That's another thingabout niche or nicheing.
You get to pick the industrythat you wanna work within.
So I like sports, as you can see.
So I was working with ESP.W-W-E-N-F-L-M-L-B, all of the
(07:13):
sports, you know, things out thereas well as I love television.
So H-B-O-A-A and E, things like that.
Well, I got the company to, its all-timehigh-end revenue and we were told we were
done scaling and that's what I love to do.
I love to scale.
I like to help people.
I like to grow, I like to coach,I like to do all of this stuff.
So.
I put out my feelers 'cause Isaw the writing on the wall.
(07:34):
Mike Malowitz, the author ofProfit verse and many other
books, is a good friend of mine.
We grew up together, uh, high schooltogether, grade school together, played
on the same sports teams over those years.
When I was working in staffing in otherindustries, Mike was always recruiting me.
Okay.
So when I threw my feelers outthere, he said, Hey Ron, I'd
like you to read my manuscript.
I said, here we go again.
(07:55):
I read it and I was like,holy shit, I love this.
And by the way, I do this.
He's like, what do you mean you do this?
I go, you know, most companies when theyhave, um, you know, the figuring out
their formula, their profit formula, allof this, their margins, their mm-hmm.
Burdens taking it into consideration.
So for staffing has a particularformula, direct labor.
(08:17):
Times burden divided bymarkup equals the bill rate.
Yeah.
That's what you go to the company, theclient with and No, no, no, no, no, no.
I want, I always tacked onanother profit on top of that.
So I was always the most profitable salesguy, always the most profitable division,
uh, branch office, because I was alwaysadding profit on top of everything else.
(08:38):
Right.
Yeah.
And then on the flip side, whenI would get a major contract,
say it was a $300,000 contract,I wouldn't tell the recruiters we
have $300,000 to find 10 people.
I'd say we have 200,000.
Let's see what we can do.
Always holding back a littlebit of profit on initiatives
and various things like that.
Yeah.
And so I shared that I alsogrew up on grandmother's
(08:59):
envelope budgeting methodology.
Right, right.
Something that you guys love.
Um, I had, I had, um, well my parents hadfood, clothing, you know, um, ran church.
Okay, so I, I, I kind ofgrew up on that stuff.
So when I read this, I was like, holy cow.
Mike said, Hey, we gotta getthis into all the business hands.
(09:20):
I said, absolutely.
How about we get it into the hands of achannel of accountants and bookkeepers
and coaches, and how about them?
Our niche?
So that was from thebasement is of his house.
In 2014, all we had was a phone,a computer, a. Book and an idea to
now we're, um, the largest brandon small business profitability.
Over a million copies of thebook sold 30 different languages,
(09:43):
19 different book derivatives.
We're in 40 different countries and wehave been eradicating entrepreneurial
poverty for, uh, close to 11 years.
The bottom line, Brandon, is whatyou're teaching as a certified profit
First professional as a. As a, uh,life insurance expert benefit, you
know, be your own banker expert.
(10:05):
This, this is perfect for those businessesthat want financial clarity, that are
sick and tired of paying themselveslast sick and tired of not having
their expenses and control and haveno idea how to pay down their debt.
This is the solution, right?
Well, and as I work with people,this, I mean, I, I know it.
(10:26):
You're preaching to the choir here.
Yeah.
Uh, and I see it.
That's, that's how, and I didn't realizelike you, it had started so early,
whenever we captured it in 20 17, 20 18.
'cause we had started our.
Business in 2011, thecoffee shop business.
Yeah.
And just were like, oh wait.
Um, we did all the books thatwe were supposed to, the, the
(10:49):
Susie Orman books and we're like,wait, this is not working for us.
Yeah, this is, this is not healthy.
And, and, um, we had flipped and madesure we paid ourselves, uh, not waiting
until the last day, but on the first day.
Right.
Yeah.
Uh, and, and those little,little flips helped us to.
Ultimately sell the businessand not close the business.
(11:11):
Well, the beauty of what we'retalking about is systems.
Mm-hmm.
So everybody who's listening outthere realizes the need for systems,
delivery systems, fulfillmentsystems, hiring systems, firing
systems, you name it, we need systems.
But let me ask you.
Explain to me your cashflow system,Mr. Business, Mrs. Business owner.
Tell me the system that youraccountant or coach has shared with
(11:35):
you that they implement in theirown business for financial clarity.
Yeah, so.
If they don't have anything,get somebody that does.
So, so that leads me as I've beenworking this and I kind of see it and
know most people are chasing sales,most people are chasing, uh oh.
(11:56):
Well I have a. Eight ornine figure business.
And you see that on TikTok, you see iton YouTube, you see all this stuff and
you've run into a lot of businesses.
Uh, you've seen them, they finallycome to you after they, they, they did
a sales coach and they did all this.
'cause they think if I have more sales,then I'll be i'll, I'll reach my.
(12:20):
My thing.
Right.
Whatever.
It's, yeah.
And so oftentimes they come to usafter they've done all those things
and we're like, man, you shouldhave came to me five years ago.
Um, that would've helped.
And then they say, I wish Iwent to you five years ago.
Yeah.
Yeah.
And, and so how do you overcomethat objection when people are
(12:40):
in the I need to grow mode?
Yeah.
Uh, and they're like, well,I need to keep up with the.
The, uh, TikTok star and theyhave a eight figure business,
how do you tell them or sh.
To, I don't know, help themsee right then and there.
Yeah.
Why they need a system.
So there's a lot of YouTube,Facebook Voodoo out there,
(13:02):
TikTok Voodoo is what I call it.
Um, statistically speaking, um, 83%of businesses are check to check.
You know, that's a study by thesmall business administration.
So basically.
Every person you see on TikTok exceptfor a select few is actually profitable.
A lot of these may be generating highrevenue, but they're spending it.
(13:23):
Most people, I'll talk to 'em.
Yeah.
As their sales.
Rise.
So do their expenses.
They sell, sell, sell, manage theirexpenses, but the expenses are
keeping pace of the, um, of the sales.
But what's happening is you're spendingall of that money and you don't have
any sort of behavioral intercept to stopyou from doing the same thing you've
been doing over and over and over.
(13:44):
That's why if you're looking to scaleor grow, you need systems, okay?
Mm-hmm.
And the most importantif, if, if cash flow.
Is the most important thing to abusiness, and you do not have a
system to manage the cash flow.
What is that telling you?
There's, there's, you, you, you,you're gonna be struggling forever.
That, that's the beauty of profit first.
(14:05):
It's not accounting, it's not bookkeeping.
It's a system that residesbetween financials, which
are historical documents.
In forecasting, what'syour hopes and dreams?
And here's another thing.
Screw them.
Who cares what they're looking like?
Be the best you can be, right?
That's what it matters.
It doesn't matter what whatthey're doing out there.
(14:27):
It's what are you doing for your family?
What are you doing for your friends?
What are you doing for your employees?
Right?
What are you doing for your customers?
Have a customer centric focusversus a sales centric focus.
'cause if you're all you're going after isthe sales, you might get there, but you're
gonna be missing a lot of opportunity andprobably not necessarily leveraging your
(14:48):
own business to get the most out of it.
Uh, I think that that'sa mic drop right there.
I mean, like, we could end the podcast.
Uh, right.
But, uh, as I think about this and,and talk to, to clients and, and
business owners, they're, they're alwayslike, I'm, I need to go make this.
I need to go do this and, and increase.
(15:09):
And, and I, I try and tell people allthe time, they're like, well, I have
a, I, I, I got my finances in order.
I got my CPA.
That tells me how this,I'm like, well, one.
They are not, they'renot cashflow strategists.
They are your tax person.
They're not business advisors either.
Business advisors.
Yes.
Uh, and I'm like, maybe youneed you, they're gonna just
(15:32):
help you maybe save taxes today.
So they say, go buy that stupid, um, gwa.
Yep.
Uh, because they'll save on taxesand then they don't think long range.
And I think that's a challenge inour industry where people are like.
Uh, quick wins, quick fixes.
Uh, if your accountant is telling you togo out and buy a truck that you really
(15:54):
don't need, but you want, um, to minimizeyour taxes, that's a bad accountant.
Okay?
Yeah.
What that accountant should be doing issaying, Hey, you've got $50,000 in profit.
Let's take a look at a marketinginitiative that you know, that you
tested that you gotta return on.
Yep.
Why don't we take that 50grand and double down on that.
Hey, you got 50 grand.
You have a fulfillment issue.
Why don't we invest that in a new employeethat can handle fulfillment, right?
(16:18):
And so, you know, there's differentways to minimize your taxes other
than occurring material stuff thatreally isn't for the benefit of
the company, but you can justify itby pulling the wool over your eyes
and put it as a business expense.
And, and this is why I love Profit First.
Right.
And, and why I love what you talk about.
(16:39):
Right.
So you're combining both theenvelope method kind of idea Yeah.
Of living within our means.
Yeah.
Right.
And not spending like drunkensailors, uh, but we're told just
get a PPP loan and, and do allthis other loan stuff or whatever.
And then we're, we're addictedto, to the banking system that is
(17:01):
gonna raise prices, raise costs.
You know, one, you makea great point there.
If you're living off your credit,if you're living off of, um, you
know, your, your lines of creditif you're living off a loan.
So that's a systems problem.
Mm-hmm.
There's a, it's a business problem.
You know, those are great injections.
Those are great safety nets.
But if you're constantly drawingon that, you've got a pricing
(17:22):
issue, a margin issue of.
Billman issue.
You've got other things going on there.
And one of the things about ProfitFirst, that's so good, when resources
are less, okay, we're gonna be moreinventive, we're gonna be more creative.
We're gonna try to do more with less.
Additionally, when things are rockingand rolling and we're grooving and we're
grooving, it's an early warning sign.
It's an early warning sign of thingsthat you know may happen because
(17:46):
on the 10th and the 25th, you'renow in tune with your cashflow.
Yeah.
Imagine being in line withyour cashflow every week.
You know what comes in, goes out,and if you have a phenomenal.
Couple of weeks.
Two weeks goes in there, yougot all this money, you're like,
holy cow, what the heck happened?
Meanwhile, most people are gettingtheir financials 30, 60, 90 days.
(18:06):
They're not really looking at 'em, andif they do, you know, they say, holy cow,
look at this spike that we had in June.
What happened?
Meanwhile, it's October.
And they don't know.
Right.
And that, that's ofunderstanding our numbers.
Um, I, I like that we talk andyou guys talk about, uh, us too.
(18:28):
Uh, the expense challenge.
So even if you're profitable.
Going through and doing an expensechallenge and being able to say,
okay, what do I, what am I spendingmoney on that I, I don't know.
Just because I'm profitable doesn'tmean I should spend 20 bucks
on a service that I don't use.
I had a company that was spending$80,000 on flowers and perfumes
(18:51):
to make the office smell good.
And I mean that, that's for me.
I'm like, I could use that 80 anyway.
Yeah, yeah, yeah, yeah,yeah, yeah, yeah, yeah.
But that's what happens when things aregoing well and you have larger revenues,
a lot of things get embedded and hidden.
Yeah.
And if you're, and the problem is whenyou're grooving and you're grooving,
and you're grooving, if you're not,if you're in that groove too long,
you look up, you're in a rut, and thecompetition has just passed you by.
(19:15):
Yep.
Right?
And so that's why you needthese systems of clarity.
Yeah.
And they don't, the expense challengethat we do is usually, like we did
in the coffee shop every uh, year, wewould say, what's working, what's not,
let's what's, what's raised prices.
And we have those systemsusing like the EOS method Yep.
Of thinking through and making sure we dothose on the quarterly or annual basis.
(19:40):
Right.
But then I'm a big fan of Perry Marshall,the 80 20, um, sales and marketing guy.
Yeah.
We understand.
One is what's the drag and what'sthe levers that are moving?
And if we have the right cash flowsystems and we know, hey, because what
(20:00):
you just said, I know something happenedJune, that RO rose our capital a lot.
Right?
Something happened That was really good.
Guess what I'm gonna do?
I have my money ready, I might.
Double in on the 20% that actuallymatters and drop the 80% that doesn't.
(20:21):
Right.
Product profit analysis, it'll alsoshow you, you know, what products
are moving faster than others.
And you know, you're,you're, you're right, vanity.
Vanity is the, the revenue, but what youput in the pocket is really what matters.
Yeah.
And so, you know, when, whenbusiness owners, you know, they.
Statistically, some people listeningare gonna say, I can't do this.
(20:42):
I'm not profitable.
I'm not making money.
Yes, you can.
Okay.
The path may not be clear, butyour next step is, and that is to
reach out to Brandon or somebodyon his team to actually help
you navigate these challenges.
Mm-hmm.
It's not difficult.
What's difficult is actuallybeing open to new ideas.
New technologies, new things, okay.
(21:03):
Yeah.
But once you're open to thesethings, that's the first step.
The next step is actually strengtheningyour mental fortitude to get through
the suck of learning that new.
Thing, right?
Yeah.
So Profit First is gonnabe new for you, okay?
And so, you know you're gonna start small.
We can't just go to the the gym andput on 300 pounds on the bench press.
(21:24):
It would crush me.
I couldn't do it.
Yeah.
So we're gonna start out small.
We're gonna build that muscle memory.
We're not gonna upset the apple cart.
You're gonna get going, you'regonna get going, and you're gonna
gamify it, and you're gonna havefun and you're gonna play with it.
But here's the thing.
You are not gonna know how to do it.
It's gonna be conceptually simple to you.
Yeah.
But when you actually get down tooperating it and when things get
(21:46):
tight, when you see your opex goalmost to zero, you're gonna freak out.
Right?
It's, this is when we needto strengthen our mental.
Fortitude.
Okay.
Yeah.
When the learning getstough, that is smart.
That's when your synapses are rehiring.
You're learning, you're growing.
But that little devil issaying, go back to the easy way.
You don't need this profit first stuff.
(22:06):
You can't do it.
It's you're not, blah, blah, blah.
That's where you work with anaccountability coach, a partner, somebody
that says, yes you can and you can do it.
And so the example I I share is.
TikTok, right?
When my daughter first got her phone,she was around eight or nine or
something like that, she'd be like, Hey,daddy, you know, take a look at this.
(22:26):
I'd be frustrated because if you takeher forever to learn the phone, then
she'd do the dances and they'd suck.
And then eventually she got good, and theneventually she got good with the phone to
now where she does, she knows what she'sdoing on my phone more than anything else.
She actually just startedhere not too long ago.
Right.
And so she'd been learning, she'd learnedand she's like, hold on, dad, time out.
Let me do it again.
(22:48):
Can you imagine if she didthat with learning Spanish?
Yeah.
Or, or learning.
Yeah.
Anything like learningyour business like that.
Don't judge me.
She learn.
She started takingSpanish at the same time.
Okay.
She didn't put forth.
She knows she's better than me, butshe didn't put forth that effort.
She couldn't see the results.
She didn't enjoy the sock oflearning this new language.
(23:10):
Now, we just got back from vacation wherewe're predominantly, we were in Ecuador.
They speak Spanish.
Yeah.
Now she realizes that she wishes thatshe had that opportunity back to go back.
Well, this is your opportunityto revisit history, everybody.
Okay?
Mm-hmm.
Right.
You can go back in time and you canactually implement this system right now.
Okay.
(23:31):
Structurally, that willprovide you with relief.
Then when you're actually acting onthis system under the guidance, you're
gonna start to feel empowered becausefor the MO first time, many of you
creatives and stuff are in controlof your money for the first time.
Imagine that power.
You're in control of it.
You're moving it.
(23:51):
Then since you haverelief, you have a plan.
You're empowered.
Next is like.
Boom.
I'm focused on growing this badboy because the system is taking
care of everything behind us.
Right.
I think that's where a lot of people,they, they just don't know where to go.
They're, they're kindof like, I don't know.
I don't know if I'd say sleepwalking.
(24:11):
'cause they're business owners.
They are, are moving, they'rejust on that hamster wheel.
Yeah.
And, and they're like,well, I just don't know.
I know how to slingingsling a hammer, not.
Uh, do this and, and they're good at that.
And so that's where havingthe right people, teams,
systems in place, uh, is huge.
And honestly, as a, as a, um,infinite banking practitioner
(24:36):
and, uh, profit first, uh, it'skinda like a heart surgeon.
I, I know what I'm looking at.
I can see a tax return and be like.
What the heck is going on here?
And also, you didn't just readthe book and decide to, you
know, implement this thing.
You know, you went throughcertification, you went through
testing, you went through courses.
You're implementing it, you'reexperiencing it, you're showing, I mean,
(24:57):
oh my God, there's people that have readthe book and are trying to implement it.
Accountants are trying to implementit and it can ruin a business.
Yeah.
So if you've tried to selfimplement and you said, oh, it
doesn't work for your business.
You did it wrong.
If your accountant is chargingyou a boatload of money because of
the reconciliations of all theseaccounts and telling you this,
(25:18):
that they're doing it wrong, right?
Yeah.
I would never read a book on, youknow, how to be a chiropractor
and then say, Hey, Brandon.
You know, I'm starting a biz andwant me to crack your back for you.
And that, that's why I thinkwe're like, my wife is A CFP.
Yeah.
So we understand that world.
(25:39):
Um, we are profit first.
We got profit first certified because we.
Right after COVID and we're like, ohmy gosh, this is gonna be a nightmare.
Um, and so we, we became Profit Firstcertified 'cause it affected us.
We are banking yourself an infinitebanking certified because there's a
lot of people who are using insuranceand they're, they're saying, I
(26:02):
read, I read Nelson's book and,and it's, I'm gonna just do it.
And they're like, no, that'snot, no, you can't just do that.
Right.
And, and I know, and uh, and so I know.
As I work with my clients and I'mlike, you know, you have, you have
all this money in, in liquidity.
On your business side, but you're,you're, you have a credit card
(26:25):
and over here how to, to kindof see that and, and capture it.
Right, because I, I see all the timethey're like, well, I made 12% on my
401k, uh, but they're spending 18%on credit cards, and you're like.
And then I don't think you're winning.
Yeah.
And that, that, that per that, whateverthey think they made, they gotta
(26:46):
take out fees, they gotta take outtaxes, they gotta take out everything.
It's very small.
Um, you know, I, I like havingmultiple legs of a stool.
Right.
Yeah.
You know, like, and that's anotherthing about, you know, somebody might
be listening, I'm profitable Ron.
I'm making a couple hundred G's,I'm making this, I'm not worried.
I got my mortgage paid off,blah, blah, blah, blah, blah.
Awesome.
Okay.
That's today.
Yeah, but are you properly insured?
(27:08):
Yeah.
What is you, are you a deca millionaire?
What does your, you know, 401k look like?
What are your alternativeinvestment strategies?
What about your stocks,bonds, mutual funds.
What about, you know, another in incomeflowing type of, you know, real estate?
What about your kids?
You wanna send 'em to private school?
You wanna send 'em to Ivy League school?
You wanna send them tospecial needs school?
(27:28):
What about your parents elderly care?
You know, I just went through this shit.
It's, you know, a hundred.
$20,000 a year out of pocket.
It's like, what the heck?
Right.
And so, you know, all the, thebeauty of profit first is that you
can prepare for the future today.
Yeah.
And that's the beauty of it.
When things are going well, this is whenwe need to arm ourselves for the future.
(27:49):
Most people are, when they're doing well,they're doubling down on their business.
Yes, I get that.
And Profit First is a growth strategy.
It's also number one seenas a fix-it strategy because
most businesses need fixed.
But once you get done with that fix,you know, you're able to architect the
bank accounts to not only eliminatethe pains, but achieve the wants.
That's the other side.
(28:10):
Most CPAs, uh, bookkeepers, controllers,you know, they're, they're not,
they're trying to help you stayoutta jail, provide you with updated.
Chart, drafts, documents, stuff like that.
You don't use any anyway, okay.
This, this is, this is adifferent way of going about it.
Well, and then, uh, I've, whenI talk to my tax guy, um, I
(28:31):
have two sets of books, right?
My profit, first books,and then my tax books.
Uh, and he's like, why do youdo not many people do that?
I'm like, well, because thosesay different things for me.
It's so funny you say that, Brandon,you're nailing it right on the head
because I've had people call me andsay, Ron, my CPA, they're telling me.
No, my owner's pay should be this.
(28:52):
My distribution should be that, that this,this, this and that, and blah, blah, blah.
I'm like.
Good.
You've got a good CPA.
They're actually working the taxcode because now you have money.
Yes.
So my CPA Keith, he doesn't carehow many bank accounts I have.
He doesn't care what the nameson those bank accounts are.
(29:13):
He doesn't care at all.
Yeah.
What he loves is when I push a boatload ofmoney over to him that he can say, okay.
Great.
Okay.
Blah, blah, blah, blah, blah.
Hey, all right.
We're doing this.
We're front loading this,this we can take off of this.
That's the fun.
If you're not making any money,you're not paying any taxes, but
I guarantee you're not having funeither, and that that's been really
(29:36):
sophisticated and you're leveraged andyou're doing crazy wackadoo stuff that
most of us aren't gonna do anyway.
That, that's been thefun of what, what we do.
And, and I've used my infinitebanking policies as I've made profit.
Nice.
To take a loan and buy myoffice, uh, condo, right?
Yeah.
And then, uh, what'sbeen hard is I'm like.
(29:58):
Hmm.
I want my opex, my pay to behigher and my opex to be low.
And my tax guy's like, well,you need to raise your rent.
I'm like, I don't wanna raise my rent,but I know how it, it looks differently on
the tax thing and I don't get taxed on it.
So then I'm like, well, you know, I,you know, it's a show game at that.
(30:18):
It's a shell game at that point thatthey're trying to do, is just categorize
things in a way that are legal, that, youknow, allow us to, you know, spend more on
the business for legit business purposesand put more in our pocket for, you know.
The right reason, which is fun becausealso as I do that and own the office
and, uh, understand the principles,then I know that he may not right.
(30:45):
Um, and, and we're ableto, to build on that.
And so that's why I love,uh, the profit first system.
Uh, people will say, well.
It, it is too many bank accounts.
I'm like, well, you know, as, as Mikesays, you know, if you go to Thanksgiving
and you'll eat a lot more food, uh,because the plate is bigger, what we're
(31:06):
just saying is make smaller plates.
Well, I, I'll even break it down.
Simpler than that, how's theway you're working so far going?
Yeah, there you go.
It's that simple.
It's like, listen, we're here.
We have the keys to the Ferrari,and we're gonna teach you how to
drive it so you don't smash it.
Okay?
But your business is too different.
(31:26):
Bullshit.
No, your ego is just inyour way, quite honestly.
Okay.
Oh, I can't do this.
It doesn't work.
Well, then you have limiting beliefs.
Yeah.
I'm not here to put lipstickon any pig out there.
Okay.
It's that simple because all you're gonnado is piss off the pig and frustrate me.
So you know what?
If you don't think it will work,it will not work in your business.
(31:46):
Guess what?
It will not work in your business.
But here's a guy that's tellingyou that he's implemented this
system in pretty much every, oh.
Thousand of accounting firms in over 40different countries who's helped all of
them implement Profit First, not onlyin their business, but all of their
customer businesses across the globe.
This is from a hundred milliondollars companies to startups to $50
(32:08):
million law firms, 25 million biotech,15 aviation coaches, bookkeepers,
everybody can benefit from this.
We even have it for athletesProfit first for the pro athlete.
Well, and let me ask you this, like,as, as, um, and as we're wind down
here, um, I know that Profit Firstis, is a game changer a lot of times.
(32:31):
You know, you see, you said this, 83%of small businesses, uh, fail the, that
you probably had these conversationsall the time, like, yeah, but yeah.
Um, it, it doesn't work for me.
And, and you're like, okay,here's what, what needs to happen?
Um, what's been the biggest.
A roadblock.
And then on the flip side, um, peoplesay, well, it's good for small businesses,
(32:56):
or It's not good for startup businesses,or it's not good for big businesses.
Yeah.
Speak to that because I know that.
Yeah.
So, so, you know, let'stalk about fundamentals.
This is fundamentals.
This is a fundamentalsystem in every business.
So, you know, um, I don't care whenyou first start learning a sport,
you need to learn fundamentals.
(33:18):
When you're in high school, you'restill practicing fundamentals.
Michael Jordan, on all those guys,they still practice fundamentals.
Okay?
So you're not so different if you'renot practicing these fundamental.
That's a problem.
Okay.
And so your business is not thatdifferent, and we can show you how to
build up that profit versus memory.
We, uh, muscle memory, I shouldsay, and, and to do it in a way is,
(33:42):
is very similar to the 401k guys.
Why isn't the numberone savings out there?
Because they remove it from take it offthe top and remove it from temptation.
Yep.
Huh?
Wait a second.
You mean if I take money off the topand I put it away and I can't get it?
'cause it's hard to get to.
That'll grow and I'll still live mylifetime, my lifestyle the same way.
(34:02):
Yep.
So, right, so start with one account.
Start with one account, put 1% in there,and then start stacking it, right?
Can you still pay your bills afterone 1% going into a tax account?
Yes, can the 2%, 3%.
This is where you can model out whatyou can do to figure out what your
(34:24):
starting percentages are, right?
You start with one, but hey,listen, by working with you or me
or somebody else, we can tell youwhat percentages to start with.
Okay.
But if you're gonna give it yourown, well then start with the
fundamental five bank accounts.
You can get them from Relay.
It was the biggest obstacle we hadto overcome is everybody had to go to
(34:45):
their bank and open up these accounts.
Well, COVID fixed that for all of us.
Yeah.
Okay.
So now the biggest reason fornot changing is now the setup.
Okay.
Oh, I gotta call this, I gottado this, I gotta do this.
Yeah.
No shit.
You gotta do some work.
To get paid.
Right?
And so if that means removing asystem and implementing a new one
(35:09):
that's gonna make you more efficientand effective, you need to do that.
And if you do not have a systemokay, for helping you provide
cashflow, clarity, well shame on you.
Yeah, that's simple.
I, I mean that, that's just right there.
It's like, all right.
Um, if you, you either need,if your system isn't working.
Change the system.
(35:30):
Um, we have no one to blame but ourself,I, I deal with 70 year olds and all
kinds of people, and they're like, Iwish that, you know, blah, blah, blah.
And I'm like, well, best time toplant a tree was 20 years ago.
Oh, right now?
Yep.
Um, and so let's, let's go ahead.
If you guys, uh, are, well, one.
He just said that you can get the book.
(35:51):
If you have not read the book,um, you can get the book for free.
Just email us, uh, Brandon,if you're in America.
Yeah, if you're in America.
Um, and if you're not in America,I made that mistake, Brandon.
I made that mistake and I had amail books all over this world
and it cost me an arm and a lag.
So, but yeah, if you're inAmerica, if you're not in America.
Um, well, we'll figure out else.
(36:13):
Yeah, it still works.
But email us.
Email me and then we'll, we'llget some books out to you.
Uh, also, um, rememberI want you the, this.
This, uh, 83% of small businessesfailing shouldn't happen.
Um, we got into businessto have financial freedom.
(36:36):
That that's oftentimes why we did it.
And we wanted to make a difference.
We wanted to change theworld, uh, in some degree.
And, uh, we left, we,we got into it to, to.
Make money.
And so if that's not happening foryou, talk to somebody like us and help.
We can help you right the ship, right?
(36:57):
It's not gonna be easy sometimes in,in business, I don't know if anybody's
been in business for more, more thana year, uh, or even a little bit.
Running a business is hard.
Uh, but as you build the rightsystems, it becomes easier and easier.
And so, um, that's what wewant to do to where that.
(37:17):
83 drops down to 80 to to 70 becausethe world needs us to succeed.
Yeah.
If we can help startups survive, right.
Make over the first year, make itto five years, make it to 10 years.
Right.
If we can reduce the failureof startups, people have jobs.
When people have jobs, it relieves alot of the stress from the home life.
(37:41):
Yeah.
Small businesses arethe backbone of America.
We have to focus on them.
First and foremost, this is the besttool that I've uncovered in 50 years
that provides financial clarity at thelevel that it does, and it's designed
for you, not for the accountant, not forthe bookkeeper, but for you, Mr. Mrs.
(38:04):
Business owner.
Exactly.
And that, that's it.
Uh, Ron, I appreciateall that you've done.
You've changed our life, um, by,um, coming alongside Mike and
getting that out in the hands.
Uh, and now we get to change the livesof countless people and just wait guys.
As, as we're, uh, we'vebeen growing our business.
(38:26):
We've been, we didn'teven talk about AI today.
I have.
But um, imagine, imagine.
Uh, all this knowledge and, andbeing able to have that dashboard
to be able to understand what to do.
Right away on your business to make thelevers, uh, move in the right direction.
Like that's where we want togo and where we wanna help you.
(38:47):
And I know Ron and his team,uh, they have tons of people.
If you don't have somebody,uh, in place, um, find them.
I am a coach, but we also know a lotof the bookkeepers and accountants,
uh, and we'd love to serve you in that.
Uh, any closing remarks there, Ron?
No.
Um, awesome.
(39:07):
You know, I like to leave everybodywith the, may the prophets be with you.
Alright.
I know that's a combo reference.
That's a combo.
Live long in profit.
Live long in profit.
May the profits be with you.
So I say that and it confusesthe heck out of people.
Yeah.
Oh, and everyone.
And it became, it was because of you.
(39:28):
When we saw that, we're like,Hmm, we're gonna change it.
Yeah.
Thank you.
We saw that on your emails.
And you didn't even know that.
But it's every email,live long and profit.
Uh, so guys live long and profitand may the profits be with you.
We are here, uh, to helpyou become more profitable.
Thanks again, Ron.
(39:49):
Thanks.
Popular Podcasts
CrimeLess: Hillbilly Heist
It’s 1996 in rural North Carolina, and an oddball crew makes history when they pull off America’s third largest cash heist. But it’s all downhill from there. Join host Johnny Knoxville as he unspools a wild and woolly tale about a group of regular ‘ol folks who risked it all for a chance at a better life. CrimeLess: Hillbilly Heist answers the question: what would you do with 17.3 million dollars? The answer includes diamond rings, mansions, velvet Elvis paintings, plus a run for the border, murder-for-hire-plots, and FBI busts.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.