Profit Tool Belt 219 - How can I put Profit First into my Construction Business? with Rocky Lalvani
Oct 31, 2023
Rocky Lalvani, the guru of financial wisdom, discusses the 80/20 rule, 'markup' vs 'margin', and the 'Profit First' approach for optimizing business profits. They also emphasize the importance of documentation and systems in construction, prioritizing profit and cash management, managing cash and the immigrant story, and effective pricing strategies.
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Rocky's Immigrant Hustle Background
- Rocky Lalvani grew up as an immigrant from India and learned financial wisdom from his parents' hustle.
- He combined his tech skills and hands-on construction experience to expertly understand both money and trades.
Profit First Formula And Principles
- Apply the Profit First formula: Sales minus profit equals expenses to ensure profitability.
- Use Parkinson's Law and the Pareto Principle to constrain expenses and focus on the most profitable activities.
Profit Shift To Christmas Lights
- A client running pressure washing and Christmas light businesses found most profit came from Christmas lights.
- He shifted focus to the more profitable seasonal business and significantly increased his income.