Rocky Lalvani is the Profit Answer Man | GP 98

Image of Rocky Lalvani. On this therapist podcast, Rocky Lalvani talks about planning your finances.

When should you start talking to your kids about money? What are the first steps to implementing the Profit First system? Why is getting a dollar in revenue and spending a dollar the biggest financial fallacy?

In this podcast episode, Alison Pidgeon speaks with Rocky Lalvani about planning your finances. They discuss the different ways you can grow your revenue, and how to use the Profit First System.

Meet Rocky Lalvani

An image of Rocky Lalvani is captured. Rocky is the founder and owner of Profit First. He is featured on Grow a Group Practice, a therapist podcast.

Rocky Lalvani was shocked to learn most business owners don’t look at their financial reports! Can you believe that? It has to do with our mindsets around money and also fear and shame. When he realized how much of a problem this was he realized his purpose: to help business owners be profitable.

Rocky Lalvani serves as Chief Profitability Adviser for business owners. He teaches them how to ensure they get paid and make profit a priority! As a certified Profit First Professional, he implements Mike Michalowicz’s Profit First System. Rocky changes the accounting formula of Sales – Expenses = Profit to Sales – Profit = Expenses. This ensures Profit comes first! (PS. It’s not about money at all costs, people come before money!)

Visit the Profit First website and listen to Richer Soul and The Profit Answer Man podcasts.

Connect with Rocky on Facebook, Twitter, Instagram, and LinkedIn.

FREEBIE: Get the First Two Chapters of Profit by Mike Michalowicz

In This Podcast

  • Talk about money
  • The biggest money fallacy
  • Implementing the Profit First system

Talk about money

Introduce the topic of money into the household.

Taking calculated risks and investing are both topics that can be introduced to children, who are old enough, to help them better grasp the concept of money and asset value.

You have to give kids money or the opportunity to get money and let them fail. Let them try different things and have the money conversations with them about what happened, and how it worked out. A big part of that, especially for kids, is that they’re being constantly marketed to, and it’s [helping] them learn to turn off the “I want”. (Rocky Lalvani)

Help your children learn the potential value of money from a young age. Help them to learn that money is not something to chase, or live for, or sacrifice everything for.

Instead, teach them that you can healthily work with money for an increased quality of life and growth of asset value.

The biggest money fallacy

For most business owners, the first fallacy they have is when they get a dollar in revenue they think they can spend a dollar, and nothing is further from the truth. (Rocky Lalvani)

Business owners need to realize that every dollar they spend requires that much in sales to achieve genuine profit. Therefore, business owners will then think twice before spending that money as soon as they receive it.

Consider workload. If your goal is to double your income to increase your profit, then the assumption is that you will double your workload.

Instead, consider slightly increasing your rate, by 10%, which will already add new profits to your total, and cutting costs by 10%, to increase the expenditure. Ask yourself, are you spending appropriately?

I know a lot of business owners are afraid to increase prices, but the reality is you have to have decent margins, because if you don’t then you are going to struggle, and if you’re struggling then you are not going to serve your clients well. (Rocky Lalvani)

Implementing the Profit First system

Have a good relationship with your banker

Opening the bank accounts should be nothing more than a quick phone call and some time at the bank to sign papers.

Start small

  • Put 1% to profit
  • Put 1% to tax

By making small steps you are starting the compounding process and creating a habit, and that is the most important thing.

Adjust as appropriate

Once you have your systems in place and the habit is developing, you can adjust it accordingly as your company, goals, and desires grow.

Often with finances, you do not always need more resources, but you can be more resourceful.

Books mentioned in this episode:

Useful links mentioned in this episode:

Check out these additional resources:

Meet Alison Pidgeon, Group Practice Owner

An image of Alison Pidgeon is displayed. She is a successful group practice owner and offers private practice consultation for private practice owners to assist in how to grow a group practice. She is the host of Grow A Group Practice Podcast and one of the founders of Group Practice Boss.Alison Pidgeon, LPC is the owner of Move Forward Counseling, a group practice in Lancaster, PA and she runs a virtual assistant company, Move Forward Virtual Assistants.

Alison has been working with Practice of the Practice since 2016.  She has helped over 70 therapist entrepreneurs start and grow their businesses, through mastermind groups and individual consulting.

Transformation From A Private Practice To Group Practice

In addition, she is a private practice consultant for Practice of the Practice. Allison’s private practice ‘grew up.’ What started out as a solo private practice in early 2015 quickly grew into a group practice and has been expanding ever since.

Visit Alison’s website, listen to her podcast, or consult with Alison. Email Alison at alison@practiceofthepractice.com

Thanks For Listening!

Feel free to leave a comment below or share this podcast on social media by clicking on one of the social media links below! Alternatively, leave a review on iTunes and subscribe!

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