Why Most Growing Businesses Still Go Bankrupt - Ron Saharyan

Thanks for joining us for another episode of the Building the Premier Accounting Firm podcast. Today Roger Knecht and Ron Saharyan discuss the critical importance of achieving profit in business, challenging the stigma around it and emphasizing its role in economic growth and personal well-being. They explore the Profit First methodology as a powerful tool for financial clarity and strategic decision-making, helping entrepreneurs eradicate entrepreneurial poverty.

In This Episode:

00:00 Eradicating Entrepreneurial Poverty
02:31 Profit Stigma and Purpose First
06:43 Profit and Business Valuation
10:48 Profit First vs. Traditional Accounting
15:21 Clarity, Empowerment, and Growth
19:11 The Business Needs to Be Paid
25:59 Profit First Myths and Mindset
31:02 Profit First for Advisory Services
37:31 Golden Rule and Professional Impact
43:01 Closing Thoughts and Resources

Key Takeaways:

• Prioritize profit to ensure business survival, expansion, and employee well-being, directly combating entrepreneurial poverty.

• Challenge the negative stigma of profit by reframing it as "purpose" and highlighting its capacity for good, like charity and growth.

• Adopt the Profit First system with dedicated bank accounts to gain financial clarity, reduce anxiety, and make informed business decisions.

• Recognize that taxes are a sign of success, and a business needs to show profit to have value, especially when considering a sale.

• Leverage Profit First to transition into a CFO advisory role, using it as a practical framework for client conversations and actionable guidance.

Featured Quotes:

• "Profit is not good or bad. It's people that are either good or bad." — Ron Saharyan

• "You cannot give what you do not have." — Roger Knecht

• "Revenue is vanity, profit is sanity. Let's be a little bit more sane about what we're doing." — Roger Knecht

Conclusion:

Thank you for joining us for another episode of Building the Premier Accounting Firm with Roger Knecht. For more information on how you can establish your own accounting firm and take control of your time and income, call 435-344-2060 or schedule an appointment to connect with Roger's team here.

 

Sponsors:

Universal Accounting Center

• Helping accounting professionals confidently and competently offer quality accounting services to get paid what they are worth.

 

Offers:

Visit: https://profitfirstapp.com/ 

Get a FREE copy of these books all accounting professionals should use to work on their business and become profitable.  These are a must-have addition to every accountant's library to provide quality CFO & Advisory services as a Profit & Growth Expert today:

• "Red to BLACK in 30 days – A small business accountant's guide to QUICK turnarounds" – This is a how-to guide on how to turn around a struggling business into a more sustainable model. Each chapter focuses on a crucial aspect of the turnaround process - from cash flow management to strategies for improving revenue. This book will teach you everything you need to become a turnaround expert for small businesses.

• "in the BLACK, nine principles to make your business profitable" – Nine Principles to Make Your Business Profitable – Discover what you need to know to run the premier accounting firm and get paid what you are worth in this book, by the same author as Red to Black – CPA Allen B. Bostrom. Bostrom teaches the three major functions of business (marketi