Rocky Lalvani - Podcast
[00:00:00] Rocky Lalvani: Top-line is vanity bottom line is sanity and cash flow is reality.
[00:00:41] Mickey Anderson: Rocky Lalvani is a certified profit first professional who got his first real taste of what it's like to build wealth from the ground up. After moving with his family to America, from India at the age of three with only $25. Rocky educates business owners on implementing systems in their business. So that money [00:01:00] flows where it should. And in this episode, we debunk the myth that business owners should focus on driving top line revenue to grow. I hope you enjoy this insightful episode with Rocky Lalvani.
[00:01:11] Mickey Anderson: Your story of you and your family, and I don't want to give away too much, but it had a major impact on where you are today. Would you be able to share with our listeners kind of your upbringing and how you became, who you are now, as you would say, the chief profitability officer?
[00:01:24] Rocky Lalvani: Sure. So I'm an immigrant to the United States. I came here when I was a little kid and my parents were basically starting over and as I was growing up, they would hang out with their friends who also immigrated and tried to figure out, you know, how do we create the American dream? That's what they came for.
[00:01:44] Rocky Lalvani: And what they would do though, is have conversations around life and. And so when I grew up, it was normal For people to share how much they paid for something and how they got a discount to where, what they were doing [00:02:00] with their investments and so forth money. Wasn't a taboo topic. It was just kind of normal.
[00:02:06] Rocky Lalvani: And also what I did see was the whole spectrum. In other words, I saw people with very little money. I saw people with lots of money and I saw people. Really lots of money. So I got to see, I think that full spectrum and, and to see how different people were doing things and the attitude was always, and the expectation was always that the world is yours,
[00:02:33] Rocky Lalvani: and there's nothing preventing you from success. So what are you going to do to go have your success and figure that out? I didn't realize till much later in life that most people don't have money conversations and that money is not a traditional. Topic that people talk about. And then I looked at even my own education because I have a bachelor of science in economics.
[00:02:58] Rocky Lalvani: They didn't teach us how to build, [00:03:00] well, I have an MBA. We didn't have classes. How do you build wealth? They don't even teach you how to make your business profitable. They tell you how to read the P and L, but they don't tell you what to do if it's not what you want. And it's funny. Cause I was just having this conversation yesterday and we were talking about education.
[00:03:21] Rocky Lalvani: Yeah, the guy who came up with the idea for FedEx in his MBA program or whatever, they told him that that would never work. And I think he did not do well on that paper. I think the same thing happened to Michael Dell. I don't remember the specifics, but education's not designed to help you to be successful.
[00:03:39] Rocky Lalvani: And I think this is why a lot of people struggle. The other thing is I have this natural talent with spreadsheets. So when I was in high school, I got one of the first apple, two computers, and I was actually helping accountants figure out how to go from paper ledger to Visy calc, which was the first sheet.
[00:03:57] Rocky Lalvani: And even when I was in college, I was working for a [00:04:00] bank and they're like, you know how to do these spreadsheets? I'm like, yeah, they're real easy. They just stuck me in a corner and said, you know, go do this for us. We need to keep track of all of these things. I just didn't realize how valuable that skill is.
[00:04:12] Rocky Lalvani: And I didn't realize how unique it was. And so it wasn't until much later in life that I put all these blocks together, figured it out. Then I realized, because that was my last aha. I just assumed business owners understood the business of business. Like they knew their financials and they actually ran the numbers.
[00:04:33] Rocky Lalvani: And I came to realize most people went into business to do what they love. And since they weren't starting an accounting practice, that's not what they loved.
[00:04:43] Mickey Anderson: We focus so much on driving revenue; on top-line on adding more value on throwing more products on, but I know that you have a different perspective there, and I'd love to know your take on what business owners should be focusing on when it comes to their finances.
[00:04:57] Rocky Lalvani: So we have a little saying, which is [00:05:00] top-line is vanity bottom line is sanity and cash flow is reality, right?
[00:05:04] Rocky Lalvani: That's just the way it is. The problem that occurs is your top line revenue is really easy to see. I made a sale. I got paid. If you ask somebody what's their bottom line, they don't know. And for most business owners, they don't find out til tax time where their accountant says, congratulations, you were profitable or unprofitable.
[00:05:28] Rocky Lalvani: Here's how much taxes you owe. And that usually brings up two questions is, you know, where is the money that you made $50,000 or a hundred thousand in profit. Where is it? And the second question is, how am I supposed to pay that tax bill? Because they don't have the cash. And I think that's one of the biggest parts of the problem.
[00:05:52] Rocky Lalvani: Profit doesn't necessarily mean you have the cash in the bank and it's spendable because the money is constantly rotating [00:06:00] and getting spent somewhere else. And so. You need to have that clarity, I think every month in your business. And I think that's the number one tip I have for people is every month you need to have a financial meeting.
[00:06:13] Rocky Lalvani: And I don't care if that financial meeting is with yourself, you know, sit down and look at your month and say, Hey, how much did we bring in? How much when. What's that leave. Was that what we expected? Is that what we set as a goal? Is it good or bad? Thumbs up or thumbs down. And then what are we going to do next month?
[00:06:33] Rocky Lalvani: And I think if you just do that little bit, you will find slowly your business improves.
[00:06:40] Mickey Anderson: Sometimes it can feel a little bit overwhelming, right? Like most of us don't have the MBA or didn't go to school for economics. And so looking at a P and L can feel a little bit overwhelming.
[00:06:50] Mickey Anderson: If you could give some advice or maybe some guidance for these new business owners who are starting to muster up the courage to look at their numbers. Are there [00:07:00] any tips or advice you have in terms of simplifying the process for them to really understand what's going on?
[00:07:06] Rocky Lalvani: Yeah. So as part of this whole journey to figure out what I wanted to do and how all these parts, uh, come together.
[00:07:13] Rocky Lalvani: I actually partnered with Mike Michalowicz who wrote the book profit first and profit first is basically a cashflow management system designed for entrepreneurs who never want to look at their P and L. And so it just makes the whole process much, much easier. So in a nutshell, it's based on a very old principle and it's, it's how I built my wealth in many you've may have heard of the envelope system.
[00:07:41] Rocky Lalvani: You know, if you go back a hundred plus years ago, your great grandparents or grandparents would get. And they would separate their money into our envelopes or, you know, into jars. This, this jar is for groceries. This charge is for rent. You know, this money has this purpose. [00:08:00] And basically what Mike did was say, Hey, let's use that same system for businesses, but instead of envelopes, we'll use bank accounts.
[00:08:08] Rocky Lalvani: Now the premise of this whole thing is that you've been given the wrong formula for profit. So most people are told sales minus expenses equals profit, which means profits are leftover it's, it's an afterthought. And Mike said, no wonder, we're struggling. So he said, let's change the equation to sales minus profit equals expenses.
[00:08:29] Rocky Lalvani: So we take our profit first and we constrain what we spend. And there's actually a principle that works on that. And I'll talk about that number. But so in this case, all your money comes in and it comes into one bank account. Well, now it's really easy to see how much money came in. Right. And then if we take that money and we allocate a percentage to profit and we put it in a separate account, that's profit that's for your, you don't touch.
[00:08:59] Rocky Lalvani: You know, you're [00:09:00] profitable, right? Because the money is segregated. And then the next account we put money into is your pay. Because one thing business owners struggle with is paying themselves, right? They're always last in line and we believe you should be first in line because if you're not on a strong place, Run the load of your business.
[00:09:18] Rocky Lalvani: It causes too much stress. And the next place we put money is for the tax man, because as we said, those taxes are coming, let's be prepared for them and let's pay them appropriately. And then what's left is truly what you have to run your business on. Now people say, well, what if one of these accounts runs out of money?
[00:09:37] Rocky Lalvani: Well, then, you know, immediately you've got a pro. Something went wrong. Now it's time to investigate what went wrong and you know, this way you make the appropriate choices. Most business owners, aren't looking at their P and L they're looking at their bank balance. And with this system, you can still look at your bank balance and you'll truly know, Hey, [00:10:00] do I have money to pay me?
[00:10:02] Rocky Lalvani: Right. Do I have money for operating expenses? How much money came in? Since the last time I did my allocations and for most business owners, we tell them no more than once a week, you should do allocations. Most businesses do it twice. Some businesses get away with once a month. It just depends on how your cash flows and how you bill and everything else.
[00:10:26] Rocky Lalvani: So you just have to figure out a rhythm for you in the book. Mike tells you what your target allocations are, but we tell people to start with where they are today. So figure out what your allocations are today, and then work off. Now, all of this comes back to a principle called Parkinson's law.
[00:10:47] Rocky Lalvani: Parkinson's law says a business will use up all the time and money allocated to it. So, you know, if you think about it and say, oh, I have a project and you bring in a sales guy to tell you how to [00:11:00] solve this. His first question is, well, what's your budget and what's your timeline and whatever your budget and timeline is, that's what it's going to do.
[00:11:10] Rocky Lalvani: Right. The lower your budget and timeline, the more apps going to get done for less, and it's going to be done quicker. So it's, it's a matter of what you do. And it's the same thing, you know, if you think about it and say, I've got to get this delivered and I've got to get it delivered in 10 minutes. Yeah, you got it done in 10 minutes, right?
[00:11:29] Rocky Lalvani: Because you figure out how to be resourceful. If you give yourself a month, it'll take a month and you'll probably waste the first 28 days just because that's what happens. Same thing happens with money, right? We, we tend to waste too much. So a big part of that is just going through your business and asking yourself is what I am spending on appropriate.
[00:11:51] Rocky Lalvani: And does it drive my. Too often we get this habit of, oh, it's a, it's a business expense. I can write it off. And we get very [00:12:00] lackadaisical with money, which is not good.
[00:12:03] Mickey Anderson: Funny, because I've seen people who in the past had got money back from the government, come tax time, and then they start their business.
[00:12:09] Mickey Anderson: And all of a sudden they realize, oh no, I have to pay. And they at first went into business thinking, oh, this is, I'll get money back on this. I'll get money back on this, but it doesn't end up working out that way. So I love that the approach. I'll locate a specific amount and just stay within that range.
[00:12:26] Mickey Anderson: It's almost like living within your means as in your personal life, but the same at your business. What a, what a radical right.
[00:12:35] Mickey Anderson: One of the things that you mentioned that I think is really important to know is many people don't pay themselves. Enough or at all, especially when they're first starting their business. And that resentment starts to build right there. They're putting in the hours and the effort and not seeing results for themselves.
[00:12:54] Mickey Anderson: And I really appreciate that this framework builds that in from the start that even if it's just a small amount, [00:13:00] like you're still seeing that come back into your world. When we think about moving from this idea of profit in your business to building wealth, because that's ultimately what all business owners want, right? You have this saying about building old fashioned wealth, and I'd love for you to kind of explain to us what that means. It can look up.
[00:13:19] Rocky Lalvani: So I think too often, people, everybody wants to get rich fast. Right? Warren buffet says nobody wants to get rich slowly, but if you look at Warren buffet, it wasn't until he was in his fifties that he had his first billion.
[00:13:30] Rocky Lalvani: And so the object is, is to build wealth slowly. And in right now, we're in a time where if you look around, everyone seems to be building wealth fast, right? Because there's so much money flowing. It's my guess when, when the next recession hits, a lot of that will disappear and those people will not. That type of well, so what we talk about for the business owner is a most businesses don't survive 10 years for a variety of reasons.
[00:13:59] Rocky Lalvani: Take money [00:14:00] out of your business. That's not what people usually say. Everyone says, oh, you have to invest in your business. Well, of course they say that they're selling you stop. I'm telling you, take money out of your business. And put it somewhere else to grow. So some people like to invest in stocks and bonds, and that's fine.
[00:14:17] Rocky Lalvani: Some people like to invest in real estate and that's also great. Some people might invest in another company, which is also so there's, there's plenty of ways to invest. You've got to figure out what are your investment skills, which investments work best for you? What are you good at? Implement that type of an investment policy.
[00:14:41] Rocky Lalvani: You use your profit account to fund that. So the more profitable your company, you remove the money and you go do something else with it.
[00:14:49] Mickey Anderson: I just want to take a moment to say thank you for listening to The Hustle Less Profit More Podcast. If you're enjoying this episode, please take a quick moment and give it a five star rating [00:15:00] and leave a review. When you do, you're helping others. Just like you find the show online. If you're a business owner, struggling to create content to market your business because you don't know what to create. Snag my free Content Planning Playbook.
[00:15:15] Mickey Anderson: You'll learn how to create your six core pieces of content, and repurpose them to go further. To create less content and convert more prospects, access your content planning playbook at heymickeyanderson.com or in the show notes below. Now back to my conversation with Rocky Lalvani.
[00:15:35] Mickey Anderson: Obviously some of our listeners have heard of Mike Michalowitz and profit first and some might not have, when we think about one action step that a business owner can take today to start this process
[00:15:47] Rocky Lalvani: So we asked people to start with one bank. So add one new bank account and every month, just take 1% of your sales, right? You won't miss a dollar out of a hundred, [00:16:00] put it in that separate bank account and give yourself a few months and then look at that and go, Hmm.
[00:16:07] Rocky Lalvani: That seemed to work. I didn't miss it. Wow. My business can be profitable and then double the 1% to two. Right, but you don't have to do that for three, four or five months down the road. So all you're doing is taking baby steps. And in most businesses, I tell people you probably have 10% of spending that's wasteful.
[00:16:33] Rocky Lalvani: So to save 1%, isn't hard. I think. Forcing you to take the time to say, is this worth it? And the second thing is a lot of times we sign up for all these services and then we stop using them, or we never use them because it was a trial that turned into a payment that we forgot to cancel. And it isn't until we start looking at our bills going, Hey, wait a minute.
[00:16:58] Rocky Lalvani: My phone contract renewed, and [00:17:00] now it doubled. Maybe I need to do something about it. Or I'm paying for these three different softwares that. I no longer use or they all do the same thing. Let me pick one and get rid of the other.
[00:17:14] Mickey Anderson: I can so relate to that kind of impulsive nature as a new business owner, there are so many shiny things out there.
[00:17:21] Mickey Anderson: There are cool applications and new systems and things that you can grab and stag and everything seems to be urgent and right. Rapid deals, bonuses, closing cart. And so there is a lot of pressure as a business owner first to stay ahead and to provide the best or have the best. But at the end of the day, I ultimately, what it seems like is you have to be more patient in all areas of your finance.
[00:17:47] Rocky Lalvani: You do. I told you this is, you know, people get wealthy slowly. In most cases, you know, there are some who get. And there's no doubt about it, but for most of us over a lifetime, just [00:18:00] putting a little bit of money away and letting it compound is what allows us to be successful and should something that happened to the business.
[00:18:09] Rocky Lalvani: 10 years later, you at least have a fallback position to begin to start your next business. And the next time you start a business. Mimi a lot smarter than the first time you did it. Or if you need to pivot your entire business, does COVID habit COVID is just one of the things that's going to smack you on this journey.
[00:18:28] Rocky Lalvani: There's plenty of others, you know, whether it be health or family or just technology. I mean, let's face it. Technology has made so many things, obviously. Overnight, you know, I remember buying a GPS with $300. I don't think they sell GPS is any more separately. Maybe they do for truck drivers, but it's not what it used to be.
[00:18:52] Rocky Lalvani: And there's so many things like that that have disappeared because somebody came along and made it obsolete.[00:19:00]
[00:19:00] Rocky Lalvani: So let's give you another action step, raise your prices 10%. At least that's another thing that small business owners, they're afraid to raise prices. And I tell people I like to work with people who like to charge premium prices.
[00:19:16] Rocky Lalvani: Right and offer a premium service, get premium pricing, but I think many business owners are scared to do that and just raise it a little bit and see if anybody complains. And in today's world of inflation, it's just to be expected because if you haven't raised prices, your cost of living has gone up and now you're making less money, even though.
[00:19:41] Mickey Anderson: For those who maybe are struggling with a little bit of debt, they maybe have racked up some credit card debt, or they have a student loan they're still trying to pay off. Is the approach different for them?
[00:19:53] Rocky Lalvani: So if you're in that, what we do is we use your profit account to pay down debt. And basically what we do, the way [00:20:00] that we usually use the profit account is we try to let it build up for at least three months. And then every three months we take half the money out. So, you know, if you have debt used to have to pay down your debt and celebrate a little, right, you're the business owner spend a little bit on celebration, use the rest to get out of debt.
[00:20:19] Rocky Lalvani: We can have a balance between the two and then once you're out of debt, now you can use that money to truly wealth.
[00:20:27] Mickey Anderson: Most of us think like let's pay the debt down first and spend whatever we can on it. But instead of that, it's, again, a more long-term approach. It's not reactive, it's not impulsive. It's looking at debt in a logical way.
[00:20:38] Mickey Anderson: Do you have any advice or tips for those who are starting to grow their team in terms of how they can look at it from a financial standpoint?
[00:20:47] Rocky Lalvani: When you hire somebody, you are not going to get an immediate return on them. That's just the reality of it. What we tell people to do, especially if they can afford it is to start another bank account, label it, future [00:21:00] employee, and start paying that employee today.
[00:21:04] Rocky Lalvani: So the first thing you're going to do is you're going to see what it feels like to pay that employee every month. And granted, you're not going to get extra money because of it, but you're also going to feel like what it's going to feel like the first couple of months that employees there. And if you can do that for three or six months, and then you go hire the employee, well, now you have the money to pay them.
[00:21:25] Rocky Lalvani: Cause you've, you've felt it. And two, you've got a little bit of reserves. To help cover their costs until they get up and running. And that also lets you sit down and figure out is this employee going to deliver this value to the business? Because if they're not, then you have to question hiring them then maybe it's Hey, can I automate this?
[00:21:48] Rocky Lalvani: Can I outsource it? Can I do this a different way? Or do I need to comes back to, maybe I need to raise prices.
[00:21:56] Mickey Anderson: The typical advice we hear is look at all the stuff you don't want to do, [00:22:00] or you don't like doing and hire someone to do that and with the time you have leftover, you'll generate more revenue, but that feels risky.
[00:22:08] Rocky Lalvani: They are correct because what I find is if there's something you don't want to do, it will eat at you and it won't get done. And it, it will take three times longer at the same point in today's world. I think more and more, you can outsource so much on a fractional basis that you don't necessarily need to hire somebody full time, because you may not be able to keep them busy full time, or if there's four different things that you want to get off your plate.
[00:22:40] Rocky Lalvani: Well, one person can't do all four of those, especially if they're very different skills. So how do we get four things off our plate to four different people, but only use them for a couple hours a month. And if they're fractional, you only have to pay them when you use them.
[00:22:59] Mickey Anderson: Great [00:23:00] advice.
[00:23:01] Mickey Anderson: When we're thinking of big purchases and investments into our business.
[00:23:05] Mickey Anderson: What should we be thinking about in terms of our finances and preparing for those?
[00:23:09] Rocky Lalvani: Again, it goes back to the same principle. Number one, you can open a separate bank account. You can save up for some or all of it. So if it's something that is going to constantly be replaced every three, four years, well, you might as well just make that part of your savings.
[00:23:27] Rocky Lalvani: Right. If you know that that is something that's a three or four year object, if it's a one-time thing, I think it really, it helps to say, okay, if I'm going to spend this money either it's got to generate more revenue or it's got to reduce your costs. And it can't be one-to-one if I go buy some and it costs me another $200 a month, but I only make $200.
[00:23:54] Rocky Lalvani: That's kind of wasting time. And yet too often, this is what we do. If I'm going to [00:24:00] invest $200, I want to return on that $200. So it should bring in four or five or $600 a month. If it doesn't do that, then you really need to question your spend too often. It's the shiny object. Oh, I need this. You don't need it.
[00:24:15] Rocky Lalvani: It's a want. And if you don't run the numbers to say, does it make financial sense? Then you probably shouldn't do it. And too often it's because you see somebody doing something or, you know, somehow you got advertised to, and you're like, oh, that would change everything more often than not. It doesn't.
[00:24:37] Mickey Anderson: I could so relate because there are so many times when I've seen this brand new application or new system, and it's, you know, game-changing new technology.
[00:24:46] Mickey Anderson: That's going to make your life easier and then you never end up using it. And it's just after a couple of months, we're like, why did I do this to myself? I love that idea of really logically looking at it and [00:25:00] saying, how is this going to generate a return? If not. It's not a necessity.
[00:25:05] Rocky Lalvani: It's a want. And you said, I think you said their accountants within your, your listening audience.
[00:25:09] Rocky Lalvani: So I know this because I play in this space. What can you do to improve your efficiencies and automate so that things get done faster, quicker. You can take things that might take 10 hours and get them down to one hour. Well, that really changes the game. And I'm sure for every single industry. You know, if you're a misuse.
[00:25:33] Rocky Lalvani: Well, you know, I can't get an hour massage down 10 minutes, but there are probably, if there are ways within your, your business to do that, you really need to look at that for the misuse. Maybe it's offering an add on, and maybe it's an add on that doesn't require time. In other words, there's certain oils or whatever it is that your clients are naturally looking for, you know, that ups your [00:26:00] every single sale.
[00:26:00] Rocky Lalvani: So just. Everyone says, work on your business, not in your business. And that's what we're talking about. How do you make efficiencies in the way you do things? And, you know, even for the misuse, it might just be the way you bill, or maybe you put people on a standard package, Hey, for $200 a month, you can come in four times a month.
[00:26:22] Rocky Lalvani: The reality is most people probably won't make it in four times. So you pick up on, on that. Th there, you just have to think about your business and what's unique and what's a better way of doing.
[00:26:34] Mickey Anderson: If you're looking at a business owner who has existing products and services and they want to increase profits, are there other ways that we can start to look at maximizing profit for our existing products?
[00:26:44] Rocky Lalvani: So I think the first thing is to really look at your pricing right? More often than not service providers. How did you come up with the pricing? Well, I looked around, this is what everyone else charges. Everyone else might be going broke, [00:27:00] sit down and figure it out. You know of the products and services that you have, which ones generate the most profit, because let's say you have five offerings.
[00:27:11] Rocky Lalvani: Well, one of them might be losing money. Two might be breakeven. One might make you a little, but one of your offerings might make you a lot of money. And if you know that, well, then you stopped doing the other four. You put all your efforts into the one that makes you the most money and. And making the most money as a reflection of time, as well as material costs and overhead and everything else, you have to look at all of those different things too often.
[00:27:44] Rocky Lalvani: What I'll see a business owner do as well. Every time I sell one of these, I get $10,000 and I go, yeah, but every time you sell one of those, it costs you 9,500 to deliver it. And every time you sell this $100 product, [00:28:00] You actually get to keep 80% of it. So why not focus on that? Because that's truly, what's putting profits.
[00:28:08] Mickey Anderson: If you're looking at a business owner, who's maybe a little bit in that scarcity mindset where they're nervous, they're feeling a little bit contracted, like there's not enough clients.
[00:28:17] Mickey Anderson: There's not enough money. W what can they do or how should they start to look at their finances to live a life of abundance?
[00:28:25] Rocky Lalvani: So the reality is I think for most business owners and, and I don't think they realize this upfront, it takes three years to build a business, right? That's how long it takes to build up a client load.
[00:28:38] Rocky Lalvani: And that's the amount of time it takes you to be profitable. So planning. Like don't expect to be profitable month, two. Don't expect people to come knocking on your door left and right. So it's a setting, the right expectations. And then I think people need to understand what's enough. So what I tell people [00:29:00] is reverse engineer your business.
[00:29:02] Rocky Lalvani: How much do I need to live on comfortably? Okay. If this is what I need, how does my business generate this for me? And actually sit down and do the math and look at the time as well as the money involved and see what it takes to be able to do that. And then it's maybe just changing your entire business model upfront.
[00:29:25] Rocky Lalvani: So we talked about accountants, what accountants are doing now, preparing taxes is a. Right. It's a race to the bottom. Well, don't get in a race to the bottom profession. Advisory is much better. So go to advisory or there's all kinds of people who specialize in certain kinds of tax credits. All they do is this tax credit work.
[00:29:50] Rocky Lalvani: And they make a, a tremendous amount more because of it. Many of them actually say, okay, We'll find you tax credits. You don't pay for it unless [00:30:00] we get you a tax credit. But if we get you the tax credit, we get 20% of the tax credit. Well, if you can save someone a hundred thousand dollars with five hours or 10 hours of work, you just make 20 grand.
[00:30:12] Rocky Lalvani: They're happy. You're happy, but it's the expertise that got you there. So it's going to take you a lot to be able to deliver that kind of value. So I think it's just reverse engineering your business. To to live the life you choose to leave some businesses just by nature are going to always struggle.
[00:30:32] Rocky Lalvani: And you got to ask yourself, maybe this is more of a hobby, then go do something to generate revenue and go have fun with your hobby.
[00:30:41] Mickey Anderson: If you could give our listeners maybe one piece of advice on their journey towards developing and building wealth for themselves, building a profitable business, living a more abundant life, what would it be?
[00:30:59] Rocky Lalvani: I think [00:31:00] you need to take the time to think about your business and to plan it out and to actually see, is this going to do what I think it's going to do? And don't most people put idealistic numbers down. I want you to put minimalistic numbers down and go the opposite direction. Say, you know, what's the worst case scenario for everything.
[00:31:22] Rocky Lalvani: And if it, if the worst case scenario leaves you in a pretty good place, Well, then you've got something that more than likely will leave you in a great place. But if you build this idealistically, you'll start spending idealistically and then you'll wonder why you stuck in the future.
[00:31:42] Mickey Anderson: Uh, you see it so much in the online business space now, right?
[00:31:46] Mickey Anderson: Business owners will get into it and think, oh, if I just think about having more money, I'll generate more money.
[00:31:52] Rocky Lalvani: So the reason we run into issues in the online space is the big guys in the space. [00:32:00] Shopify, Amazon, all these people, they take such a large cut that you don't realize what you have leftover is very little, and that's why it's extremely important to do the math. Because when you do the math, you'll find out, whoa, this wasn't such a great business idea, and it does it. I can show you people who are doing millions of dollars in the online space, and they have nothing to show for it.
[00:32:30] Mickey Anderson: I personally feel like I'm leading here a better business owner, like I'm going to go look at my books and our listeners are going to do the same. If they'd like to get in touch with you online, to learn more about you, profit first, the services that you provide, where can we find you?
[00:32:44] Rocky Lalvani: So the website is profitcomesfirst.com. And the podcast is The Profit Answer Man Podcast, where we basically teach all of these principles in much more depth.
[00:32:54] Rocky Lalvani: We bring on business owners, who've done it. We bring on people to help you to be more [00:33:00] profitable and to think a little bit more about how you run your business.
[00:33:04] Mickey Anderson: Thank you so much. I so appreciate your time today. Thank you.
[00:33:08] Rocky Lalvani: Thank you for having me.