Laying the Financial Foundation: The 3 Moves Every Business Needs
Jun 10, 2025
Building a sturdy financial foundation is vital before scaling a business. Learn how to streamline bookkeeping, implement Profit First systems, and create essential financial dashboards. Discover strategies for managing real estate budgets, including the importance of contingency funds. Delve into cash conversion cycles and their impact on profitability. Finally, understand the necessity of financial reserves for stress-free investing and sustainable growth in the ever-changing real estate landscape.
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Three Essential Financial Moves
Establish a solid financial foundation with three key steps: bookkeeping management, Profit First implementation, and dashboard setup.
Use dashboards for forecasting to navigate finances proactively rather than reactively.
question_answer ANECDOTE
Writing Profit First for Real Estate
Ryan's co-author acquired intellectual property to customize Profit First for real estate investing.
Writing took 18 months while balancing family and work, highlighting the challenge of authoring a book.
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Manage Rehab Overruns Proactively
Always add a 10% cushion to rehab budgets to cover overruns.
Set up a rehab reserve account within Profit First to avoid mixing funds and ensure project completion.
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Transform Your Business from a Cash-Eating Monster to a Money-Making Machine
Mike Michalowicz
In 'Profit First', Mike Michalowicz introduces a behavioral approach to accounting that flips the conventional formula from 'Sales - Expenses = Profit' to 'Sales - Profit = Expenses'. This system involves taking a predetermined percentage of sales as profit first and then allocating the remainder for expenses. The book provides practical, step-by-step advice and case studies to help entrepreneurs manage their businesses more effectively, ensuring early and sustained profitability and long-term growth.
Profit First for Real Estate Investing
David Richter
Profit First for Real Estate Investing, written by David Richter, is a financial management guide tailored for real estate investors. It adapts the Profit First method, originally created by Mike Michalowicz, to the unique needs of real estate investing. The book provides a simple cash flow system that prioritizes profit allocation and disciplined expense management, helping investors to reduce stress and build a healthy and profitable real estate business. It includes practical steps such as setting up specific accounts, assessing financial health, and leveraging financial data to attract better deals and private lenders.
Before scaling, you need a solid financial foundation. From cleaning up your books to setting up Profit First systems and dashboards, this is how you stop flying blind and start building real cash flow.
Join our FREE community, weekly calls, and bible studies for Christian entrepreneurs and business people. https://www.wealthykingdom.com/
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About Ryan Pineda:
Ryan Pineda has been in the real estate industry since 2010 and has invested in over $100,000,000 of real estate. He has completed over 700 flips and wholesales, and he owns over 650 rental units. As an entrepreneur, he has founded seven different businesses that have generated 7-8 figures of revenue.
Ryan has amassed over 2 million followers on social media and has generat...
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