VBJ June 2019

THE VALLEY BUSINESS JOURNAL
12 www.TheValleyBusinessJournal.com
June 2019
Profit First Coach
THE PROFIT FIRST FORMU-
LA - The GAAP (Generally Accepted
Accounting Principles) formula for
determining a business’s profit is Sales
– Expenses = Profit. It is simple, logical
and clear. Unfortunately, it’s a lie.
The formula, while logically accurate,
does not account for human behavior.
In the GAAP formula profit is a left
over, a final consideration, something
that is hopefully a nice surprise at the
end of the year. Alas, the profit is rarely
there and the business continues on
its check to check survival.
Sales – Profit = Expenses
With Profit First you to flip the
formula to Sales – Profit = Expenses.
Logically the math is the same, but
from the standpoint of the entrepreneur’s
behavior it is radically different.
With Profit First, you take a
pre-determined percentage of
profit from every sale first, and only
the remainder is available for expenses.
PARKINSON’S LAW - Author
and historian C. Northcote Parkinson
theorized that our demand for a resource
increases to meet the supply
of it. That is why when we are given
two weeks to do a project it takes two
weeks, and when we are given eight
weeks to do the same project it takes
eight weeks. That is why when given
$1,000 to complete our work we get
it done with $1,000 and when given
$10,000 to complete the same work,
it takes $10,000. Profit First makes
Parkinson’s Law an asset. By taking
profit first the money available for
expenses lessens, and we are forced to
find ways to get the same things done
for less money.
BANK BALANCE ACCOUNT-
ING - Most entrepreneurs don’t
have the time or gumption to read
the different accounting statements
necessary to manage the financial
aspect of their business. Theoretically
you should review and correlate your
Income Statement, Balance Sheet and
Cash Flow Statement monthly (or more
frequently), but few entrepreneurs do.
Most resort to “bank balance accounting,”
where we check our bank balance
every day and make financial decisions
based upon what we see. Per Parkinson’s
Law, we consume what we see in
our bank account. Profit First encourages
the entrepreneur to continue “bank
balance accounting” by first allocating
money to profit (and other accounts)
so that the entrepreneur sees the actual
portion of deposits that are available for
expenses and they automatically adjust
their spending accordingly.
DON’T CHANGE HABITS,
LEVERAGE THEM - Many entrepreneurs
try to force themselves to become
better at accounting and to become more
disciplined in their fiscal management
by pure willpower. But just like a muscle,
willpower can be drained. And in a
moment of financial stress or bigger than
expected expenses the entrepreneur will
break their own fiscal rules and spend
the money they have. The Profit First
principle does not try to change your
habits (that is nearly impossible to do),
Profit First works with your existing
habits. By first allocating money to
different accounts, and then removing
the temptation to “borrow” from yourself,
your business will become fiscally
strong and you will benefit from regular
profit distributions.
These notes are a product of Mike
Michalowicz and his companies.
If you have any questions or need assistance,
please contact Nicole Albrecht.
Nicole may be reached at 951-719-1515
or nicolea@taxmanfred.com.
FINANCIAL
Presented by
Nicole Albrecht
Benefits of Upgrading your Glass Windows
by Cory Montez
With summer just around the corner
it is time to start thinking about
replacing your windows and doors.
Overtime, the glass on your windows
can begin to fog, erode, and in some
cases crack under the elements, and of
course there’s always that occasional
oops! Not to mention that the older
your house is the older your windows
are. Although, your windows may still
be in one piece and still provide the
basic functions, that does not mean
they are working efficiently, saving
you money or highlighting your home
or business to its full potential. An
upgraded retrofit window or door can
save you money during the hot months
of summer by keeping the cool air in
and that hot humid air out. Upgrading
your window can increase energy efficiency
while reducing your energy
costs. For example, upgrading to a
dual pane window can not only save
you money with heating and cooling
costs it will also dramatically reduce
the outside noises compared to using
an old outdated single pane aluminum
frame window.
Here at Andy’s Glass & Window
we strive to provide you with the
most efficient windows at the price to
fit your needs. Our friendly staff will
professionally install your windows
and doors (we also do glass showers
and much more). We have been in business
since the 1970s and have trained
experts who work hard to provide you
with excellent customer service. Don’t
believe us check out our Yelp reviews.
We protect and respect your home
when professionally installing your
glass windows and door needs. We use
high quality glass products, frames, and
materials from trusted companies.
We use retrofit windows and doors
that are designed to not only look good
but keep your home cool and warm.
Our windows and doors include standard
IG (Insulated Glass) units. IG
units come with a Low-E (low emissivity)
glass coating that is designed to
improve thermal insulation efficiency.
Ig units are also made with argon gas.
Since argon gas is denser than air when
used together with Low-E it helps the
window stay closer to the temperature
inside your house. Allowing you to
save those extra dollars on your electricity
bill.
If you’re thinking of upgrading
those windows or doors now is the
time to call Andy’s Glass & Window.
Our professional staff will be happy to
assist you from start to finish. We will
gladly send out a technician to correctly
measure the window or door that needs
replacement. Once your window or
door is measured our office staff will
reach out and provide you with an
estimate on the window or door that
works best for your needs. As soon as
the price is right, we will send out our
installer to safely install that beautiful
upgraded window or door for you.
Once our installers complete the job,
they clean up the area as if they were
never there. We make sure you are
100% satisfied before we leave your
property. You never know it might be
me showing up at your door. Call us
today and we’ll be happy to assist you
on your glass window or door needs.
(951) 677-7421.
Cory Montez is the Field Technician
for Andy’s Glass & Windows.