Reddit reviews Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
We found 6 Reddit comments about Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine. Here are the top ones, ranked by their Reddit score.
PORTFOLIO
Off the top, I have to say that I really don't like the tone of your post, it shows a lack of respect and ignorance for how much work and capital the owner of a company has to put in. Being good at business doesn't mean that you're the best technical carpenter or even a carpenter at all. It's like the typical restaurant feud where the kitchen staff doesn't appreciate what the wait staff do and visa-versa, while not realizing that one would not exist without the other.
Sales and dealing with clients is much more difficult than most give credit for. Knowing how to price things to make money, being able to work with all different types of personalities and keeping a level head under very stressful situations are skills we don't learn in the field. Not to mention the financial risk on every project, accounting, advertising, driving all over hells half acre to price jobs you might not get...etc.
All this to say, take a little time to research and learn what goes into the front end of a business that is successful. A few books you might want to check out:
1)Markup and Profit: A Contractors Guide by Michael Stone
2) The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change by Stephen R. Covey
3) Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
4) Running a Successful Construction Company by David Gerstel
5) How to Win Friends & Influence People by Dale Carnegie
Most important though is to find an accountant and learn what goes into accounting. Of all the things that I've seen take down really good carpenters going out on their own, accounting is #1. They don't put money away to pay taxes end up in a robbing peter to pay paul situation, or just don't know what their overhead is to charge appropriately to cover it as well as make a profit and cover their own wage.
As far as how much capital to start out with, I'd say 6 months salary. It's always a good idea to have a least 6 months worth of operating expenses as a capital reserve even while operating. It makes you less likely to be put in situations where you HAVE to work and end up taking jobs you shouldn't.
I used to struggle about "what was right" and figuring out the right profit distribution. I stumbled upon this book called Profit First (https://www.amazon.com/Profit-First-Transform-Cash-Eating-Money-Making/dp/073521414X) a while back and decided to try it out.
The part where Alex and Bob are splitting money should be a little more complex so that you know exactly what you owe for taxes, operating expenses, income, profits, and potentially savings. It's a quick read but definitely changed how I do distribution for the better.
Note that I am not affiliated with this book whatsoever, it just really helped me out.
OYS #5
Previous OYS - First OYS
Stats:
Age: 32; 6'1"; 230-221 lbs; Wife: 32, (together 6, married 3); Children: 1 - 18 months
Readings: Way of the Superior Man. NMMNG. Current: Gorilla Mindset
Overall very up and down week
Drinking
3/10
Drank 2 beers or less at 3 different social events. Pretty obvious that those events and (completely, totally imagined) peer pressure are problems for me as I haven't drank alone in 4+ weeks at this point, which is only reason this isn't a 1.
Was disappointing after a week of not drinking at all but something that gives me clarity of what I need to work on from a self-confidence and actualization perspective. (e.g. - I have trouble saying no to anyone about anything).
Next OYS:
Finances
9/10
Part of a small business group where everyone recommended the book "Profit First." Stayed up all night reading it one night and will read again. Going to implement coming up as it will ensure consistent owner profits as my business grows which will yield desired income increases. (Goal - increase income to $250k in 2020, $400k in 2021, and $600k in 2022).
Next OYS:
Debt
No grade - holding pattern
No movement as waiting for IRS to post recently filed 2015/2016 returns.
Next OYS:
Family
9/10
Had an amazing week watching my daughter while my wife was gone. We had a great time playing and adventuring together. Other than taking her bowling with my side of the family on Wednesday it was all me.
Since wife got home on Saturday she's noticed that our daughter enjoys hanging around me more and getting picked up.
We've had sex every night but 1 since she's been back.
Health
4/10
Reliance on coffee, caffeine and modafinil have continued. Totally forgot I meant to detox last weekend so put in a task to start this Friday.
Cheated on Keto diet with wife gone. No reason other than being a total bitch. Totally not conducive to goals.
Worked out only a couple times because I was "tired." Have been sleeping terribly because of reliance on caffeine so that has contributed.
Also in "oh my gosh, I have so much to do I can't work out" mode when that's obviously not true and it's the most important thing regardless.
General
I should be able to not drink in any circumstance, but the calendar is (intentionally) free of social events while I figure out why I can't do it at those events. Again, not an excuse, but if I break my 4-week streak of not drinking alone it's DEFCON get help situation.
Need to block out the noise and put in some hours at work. I've Time Tracked off and on over the years and will do so this week.
Need to commit to going to sleep on time.
I can relate to your story and have found myself in this situation a few times before...who hasn't?
Recently I've been reading Profit First by Mike Michalowicz and it's given me a different perspective on managing my businesses.
For me it's early days in implementing the method he preaches and to most it'll seem bonkers. It appeals to me because I respond better to strict budgets and regular tracking.
The author talks a lot about how we, as business owners, are in this cycle of: business is great -> more staff and more expenses -> have a quiet month and start to panic -> do ANYTHING to make a sale -> business is great ... and so forth.
The "Profit First" method tries to break this cycle by making us focus on our expenses and PROFIT first so that we don't find ourselves allowing expenses to creep and having to chase a sale, any sale, I'll even wash your car!
It may not be the answer to your problems but I'd certainly recommend giving it a read.
Man, how ya gonna post that and not share an easy link to it?
Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine https://www.amazon.com/dp/073521414X/ref=cm_sw_r_cp_api_OiXHzbRHDWJA7
FYI, I've not read it or know anything about it, I'm just sharing a link for OP who did not. But I will check it out to see if it is of interest to me.
Please read this book: Profit
First
You still see an IMMEDIATE change in your business. Plus, it's an easy read.