THE VALLEY BUSINESS JOURNAL 12 www.TheValleyBusinessJournal.com <strong>June</strong> <strong>2019</strong> 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.
<strong>June</strong> <strong>2019</strong> THE VALLEY BUSINESS JOURNAL www.TheValleyBusinessJournal.com 13