Ep 296 Simple Numbers, Big Profits with Greg Crabtree: How to Scale Without Debt or Chaos

Simple Numbers, Big Profits with Greg Crabtree: How to Scale Without Debt or Chaos

Most business owners chase revenue—and lose sight of profit. In this episode of Profit Answer Man, Rocky Lalvani sits down with Greg Crabtree, author of Simple Numbers, Straight Talk, Big Profits, to cut through the noise and talk about what really drives a successful business. A self-described "recovering accountant," Greg shares how data—not opinions—can transform how entrepreneurs see their numbers, make decisions, and grow sustainably.

If you've ever felt like your financial reports are confusing or your growth isn't showing up in profit, this conversation will show you exactly where to look and what to fix.

In This Episode, You'll Learn:

• Why accounting data is often misleading—and how to use "simple numbers" instead.
• How to measure labor efficiency so your team drives profit, not just revenue.
• The power of gross margin as the real top line of your business.
• Why debt-free growth is possible with strong cash discipline.
• What Greg's 100-company study reveals about the real state of today's economy.

Key Takeaways:

• Gross Margin is King – Stop paying attention to revenue. Profit lives in the margin.
• Know Your Labor Efficiency Ratio – Every $1 in labor should create $2 in gross margin.
• Cash is a Strategy – Keep two months of operating expenses in the bank—your safety net for growth.
• The Economy is Shifting – Growth won't come from the market; it'll come from taking share from weaker competitors.
• Simplify Your Dashboard – If a number doesn't drive a decision, take it off the report.

Bio:

Greg Crabtree, speaker, author, entrepreneur and financial expert. Greg founded his own firm Crabtree, Rowe and Berger to focus on helping entrepreneurs build their economic engine. After being named to the INC 5000 list for 2019, Greg's firm merged with Carr, Riggs & Ingram CPA's and Advisors, a top 20 U.S. Accounting firm to help broaden their impact on the entrepreneur community. Greg serves as the Partner in Charge of the Simple Numbers Consulting unit.

In 2011, Greg's first book "Simple Numbers, Straight Talk, Big Profits" shares his core principles of how to turn your business into a wealth building engine. In 2014, Greg contributed a chapter to Verne Harnish's book, "Scaling Up" on how to improve profits though labor efficiency. In 2020, Greg released his newest book, "Simple Numbers 2.0: Rules for Smart Scaling". Greg is a frequent speaker to groups like EO, Scaling Up (Gazelles), Metronomics, Bloom Growth, Vistage, ACETECH and many Mastermind groups and has presented in over 15 countries.

Greg also chairs the EO@Wharton Executive Education program for the last 7 years and serves as an EO Accelerator trainer since inception of the Accelerator program.

Both books are available on Amazon, Kindle and Audible.

Links:

Simple Numbers - https://www.simplenumberscri.com/

Greg Speaking - https://gregcrabtree.net/

Conclusion:

Greg Crabtree reminds us that business success isn't about how much you sell—it's about how efficiently you turn effort into profit. The future belongs to entrepreneurs who understand their numbers, make decisions from data, and lead with discipline. As Greg says, "You don't need more data—you need the right data."

Whether you're running a $1M or $10M business, this episode will help you stop guessing, start measuring, and finally take control of your profits.

#ProfitFirst #SimpleNumbers #GregCrabtree #BusinessProfitability #CashFlow #Entrepreneurship #FinancialClarity #FractionalCFO #ProfitAnswerMan #SmallBusinessFinance #GrossMargin #BusinessGrowth #CashManagement #LaborEfficiency #ProfitabilityMatters

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Music provided by Junan from Junan Podcast

Any financial advice is for educational purposes only and you should consult with an expert for your specific needs.