Entrepreneurs on Fire How to Make Money But Not Feel Broke with David Richter
Dec 26, 2024
David Richter, author of "Profit First for Real Estate Investing" and owner of Simple CFO, shares insights on financial management for entrepreneurs. He emphasizes the need for a profit-first mentality, highlighting the importance of tracking income, expenses, and savings. Richter discusses how to combat the feeling of being broke despite earnings and the necessity of establishing dedicated bank accounts for financial clarity. With practical steps and strategies, he guides listeners on retaining income and cultivating good money habits, even starting with just 1% savings.
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The Game of Money
- Many entrepreneurs focus on making more money, but neglect keeping it.
- Entrepreneurship is ultimately about playing and winning the "game of money."
First Step to Keeping Profit
- Reverse the typical profit formula: Sales - Profit = Expenses.
- Open separate bank accounts and label them clearly (income, expenses, profit).
The Three Most Important Numbers
- Track what you make, spend, and keep, especially cash flow.
- These numbers provide clarity and help solve the right business problems.
