Profit First: Stop Leaving Money on the Table with Rocky Lalvani

Firing The Man

Ever wonder why your business shows profits on paper but your bank account tells a different story? Rocky Lalvani, the Profit Answer Man, joins us to shatter conventional accounting wisdom with a simple yet revolutionary approach: take your profit first.
Most entrepreneurs follow the traditional formula of sales minus expenses equals profit, making your financial reward an afterthought—whatever happens to be left over. Rocky flips this equation, teaching that successful businesses approach it as sales minus profit equals expenses. This fundamental shift ensures you get paid first, forcing your business to operate within its means.
Through riveting breakdowns of real-world scenarios, Rocky illuminates why even businesses with strong sales often struggle financially. From e-commerce sellers battling slim margins after marketplace fees to service businesses failing to account for their own time, the root problem usually traces back to incomplete math from the beginning. "If you didn't do the math on your business when you started," Rocky explains, "how did you know it would be profitable?"
The conversation takes a fascinating turn examining the cash conversion cycle—how long it takes for a dollar invested to return with profit. For many e-commerce businesses, this cycle stretches beyond 160 days as products move from manufacturing to customer delivery to payment processing. This extended timeline creates a dangerous trap where growth actually threatens survival, as each new sale demands more cash before previous investments return.
Rocky's airplane analogy perfectly encapsulates the entrepreneur's journey: "Running a business is like flying an airplane—you need to know your destination, have enough fuel to get there, and constantly course-correct along the way." Many businesses crash because they build an aircraft designed to carry more than it can handle, without enough runway to take off or fuel to reach their destination.
Whether you're just starting your entrepreneurial journey or working to scale an existing business, this episode provides the financial clarity needed to build a company that serves your life rather than consuming it. Visit ProfitComesFirst.com to access free resources that will help you implement these principles right away.
How to connect with Rocky?
Website: https://profitcomesfirst.com/

Podcast: https://podcasts.apple.com/us/podcast/profit-answer-man-implementing-the-profit-first-system/id1508245322

YouTube: https://www.youtube.com/@profitanswerman

Facebook: https://www.facebook.com/ProfitComesFirst

Linkedin: https://www.linkedin.com/in/rocky-lalvani/

Instagram: https://www.instagram.com/profit_answer_man/

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Chapters

1. Meet Rocky: The Profit Answer Man (00:00:00)

2. Flipping the Accounting Formula (00:03:56)

3. The Math of Profitability (00:06:48)

4. Amazon Economics: The Hidden Costs (00:11:00)

5. Building Beyond Amazon's Platform (00:18:28)

6. Sales Minus Profit Equals Expenses (00:23:36)

7. Cash Flow and Business Growth (00:31:02)

8. Actionable Steps and Fire Round (00:35:23)