Profit Answer Man: Scaling with Profit First & Beyond

Rocky Lalvani

Hi, I'm the Profit Answer Man! The Profit Answer Man podcast is a weekly show hosted by Rocky Lalvani, a business coach and Certified Profit First Professional. In each episode, Rocky shares his expertise on how to scale profit and cash flow for 7-8 figure businesses. Episode 1 is the why, 2 - is Mike Michalowicz, and 3-13 are Rocky's take on each chapter in the book. The Profit Answer Man podcast is designed for small business owners, entrepreneurs, and anyone else looking to improve their financial management skills. Rocky covers a wide range of topics, including how to prioritize profit, manage cash flow, and grow your business. One of the things that sets the Profit Answer Man podcast apart is Rocky's engaging and entertaining style. He uses anecdotes, humor, and relatable examples to make the concepts he's discussing easy to understand and apply. If you're a small business owner looking for practical advice on how to improve your financial management and increase profitability, the Profit Answer Man podcast is definitely worth a listen. Whether you're just starting out or have been in business for a while, you'll find plenty of valuable insights and tips that can help you take your business to the next level. Sign up to be notified when the next cohort of the Profit First Experience Course is available! http://bit.do/profitblueprint More about making profitability simple: http://profitcomesfirst.com/ Profit Answer Man Facebook group: https://www.facebook.com/groups/496018144624882/ My podcast about living a richer more meaningful life: http://richersoul.com/ Any financial advice is for educational purposes only and you should consult with an expert for your specific needs.

  1. 3D AGO

    Outgrowing Your Team: The Loyal "Mike" Problem Every Business Owner Faces with Kurt WilkinOutgrowing Your Team: The Loyal "Mike" Problem Every Business Owner Faces with Kurt Wilkin

    Outgrowing Your Team: The Loyal "Mike" Problem Every Business Owner Faces with Kurt Wilkin   Find Rocky Lalvani @ www.ProfitComesFirst.com or email him at rocky@profitcomesfirst.com   "Every growing business has a 'Mike'—the loyal early employee who quietly becomes your biggest bottleneck."   Most entrepreneurs don't fail because they lack hustle. They get stuck because the team that got them here… can't get them there.   In this episode of Profit Answer Man, Rocky Lalvani talks with Kurt Wilkin—entrepreneur, former founder of HireBetter (a recruiting firm that partnered heavily with EOS companies), and author of Who's Your Mic?—about the moment every growing business eventually faces: you outgrow a "key person," and your loyalty delays the decision that growth requires.  Kurt breaks down the "Mike" problem (the early employee who handled the finance/ops/integrator work), why founders wait too long, and what to do before the bottleneck starts costing you profit, time, and momentum.    In This Episode, You'll Learn: What "Who's Your Mike?" really means—and why every entrepreneur either has, had, or will have a "Mike" if they keep growing.  The classic growth pattern: how "Mike" goes from bookkeeper → accountant → controller → "CFO"… until the business hits a level where he's in over his head (banks, credit lines, bigger deals).  Why business owners delay the hard conversation—and why it feels like firing a lifelong friend.  Why you don't always have to fire Mike (reassignment can work)—but keeping a struggling leader creates a ceiling on the whole team.  A key hiring truth: you can't attract A-players to join a team when a C-player is running the department.  The "Pipeline Paul" warning for sales hiring—and the red flag Kurt calls out (repeated ~18-month stints).  Why founders struggle to hire salespeople: the owner can sell because they are the business, but a salesperson can't replicate that without a real sales system.  The difference between traditional sales and business development (solving the customer's problem vs. forcing a fit).  The integrator affordability question ("Next Level Natalie")—and Kurt's view that many businesses have "money in the couch cushions" through waste and inefficiency.  Rocky's take on the "everyone is busy" trap—and how sometimes one person is effectively creating fires the team constantly fights.  Why peer communities matter: Kurt's perspective on EOS as a business operating system, and YPO as a broader peer group that includes family and personal balance.    The Big Takeaway: Growth doesn't just demand better strategy—it demands better people alignment. If you're scaling and your leadership team hasn't scaled with you, you may be running a "lifestyle business" for everyone except the owner: the team hits goals, stays busy, and the founder is left holding the stress (and sometimes the lack of profit/cash flow).  The question isn't whether you'll face a "Mike." The question is whether you'll address it early—before it becomes the reason growth stalls.    Bio: Kurt Wilkin is an entrepreneur and former founder of HireBetter, a recruiting firm that helped entrepreneurs build next-level teams and partnered with EOS companies. He previously built and sold a finance and accounting consulting firm (growing to ~120 employees), and he hosts the podcast Unlocking Moves. Kurt's work focuses on helping entrepreneurs build strong teams and healthy businesses—what he calls "capitalism for good."    Links: Instagram: @Kurt.Wilkin and @UnlockingMoves Facebook: @KurtWilkin Twitter: @KurtWilkin LinkedIn: Kurt-Wilkin   Conclusion: If you want to grow, you can't avoid hard people decisions forever. Start by identifying your "Mike," getting clear on where the business is going next, and mapping the real gaps on your leadership team. Then have the honest conversations early—because once you see misalignment clearly, waiting only makes it more expensive (in profit, time, and momentum).    Listen to the full episode to learn how to spot your "Mike," make the hard people decisions sooner, and build a team that scales profitably.   #ProfitAnswerMan #ProfitFirst #ProfitComesFirst #CashFlow #BusinessOwners #Leadership #TeamBuilding #Hiring #Recruiting #PeopleOps #CompanyCulture #LegacyEmployees #EOS #Traction #Integrator #Operations #ScaleUp #Entrepreneurship #SalesHiring #BusinessDevelopment #SalesProcess #SmallBusinessGrowth   Watch the full episode on YouTube: https://www.youtube.com/@profitanswerman Sign up to be notified when the next cohort of the Profit First Experience Course is available! Free Copy of the Profit Blueprint Book: : https://lp.profitcomesfirst.com/landing-page-page  Monthly Newsletter signup: https://lp.profitcomesfirst.com/newsletter-signup Relay Bank (affiliate link): https://relayfi.com/?referralcode=profitcomesfirst Profit Answer Man Facebook group: https://www.facebook.com/groups/profitanswerman/ My podcast about living a richer more meaningful life: http://richersoul.com/ 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.

    40 min
  2. FEB 3

    Hourly Billing Is Nuts: How to Boost Profits with Value Pricing with Jonathan Stark

    Hourly Billing Is Nuts: How to Boost Profits with Value Pricing with Jonathan Stark   Find Rocky Lalvani @ www.ProfitComesFirst.com or email him at rocky@profitcomesfirst.com   Most business owners don't realize the hidden cost of hourly billing. It's not just that it can feel annoying. It's that it can cap your income, misalign incentives, and create friction and distrust with clients—especially when estimates blow up.   In this episode of Profit Answer Man, Rocky Lalvani sits down with Jonathan Stark, former software developer and author of Hourly Billing is Nuts, who's been on a mission since 2006 to help experts stop selling time and start pricing for outcomes. Together they break down why hourly billing creates an "artificial ceiling," how fixed pricing changes the client relationship, and how to protect yourself from scope creep by tying everything back to outcomes.    In This Episode, You'll Learn: Why hourly billing creates an artificial ceiling on income (even at high hourly rates).  Why clients hate hourly projects when estimates go wrong—and how it destroys trust.  How fixed pricing rewards efficiency (and why hourly pricing financially punishes smart shortcuts).  The difference between selling inputs/deliverables vs selling the outcome.  Why most people think "value pricing won't work in my industry"—and what's really missing (the "why" conversation).  How to handle "scope creep" by using the agreed outcome as a filter—and parking non-essential requests.  A practical bridge for hourly billers: offering an estimate vs a higher fixed-price option to shift risk and provide certainty.    The Big Takeaway: Hourly billing isn't just a pricing method. It's an incentive system—and it often incentivizes the wrong things. When you price by the hour, you cap your upside and risk creating tension with clients when projects run long. When you price for outcomes, you align incentives so both sides win when the work gets done faster (without sacrificing quality), and you create a healthier, more trusting relationship.    Bio: Jonathan Stark is a former software developer who is on a mission to rid the world of hourly billing. He is the author of Hourly Billing Is Nuts, the host of Ditching Hourly, and writes a daily newsletter on pricing for independent professionals.   Links: Website: valuepricingbootcamp.com LinkedIn: https://www.linkedin.com/in/jonathanstark/ YouTube: https://www.youtube.com/c/TheJonathanStarkShow   Conclusion: Hourly billing feels normal in a lot of industries—but as Jonathan explains, it often creates an artificial ceiling on your income and puts the client in the risky position of betting on an estimate that may not hold up. That's when trust erodes, projects get contentious, and both sides lose.  A fixed price (and ultimately value-based pricing) changes the game: incentives align, efficiency gets rewarded instead of punished, and you can protect the work by filtering scope decisions through the agreed outcome—parking anything that doesn't contribute until after you "declare victory."  If you're currently billing by the hour, this episode is your reminder that the goal isn't just to charge more—it's to price in a way that supports better relationships, better results, and a business model that doesn't depend on maxing out your calendar.    Ready to stop selling time and start selling outcomes? Explore Jonathan's work at https://jonathanstark.com/ and check out http://valuepricingbootcamp.com to learn practical ways to move away from hourly billing.    #ProfitAnswerMan #ProfitFirst #ValuePricing #HourlyBilling #PricingStrategy #Consulting #ProfessionalServices #BusinessProfit #CashFlow   Watch the full episode on YouTube: https://www.youtube.com/@profitanswerman Sign up to be notified when the next cohort of the Profit First Experience Course is available! Free Copy of the Profit Blueprint Book: : https://lp.profitcomesfirst.com/landing-page-page  Monthly Newsletter signup: https://lp.profitcomesfirst.com/newsletter-signup Relay Bank (affiliate link): https://relayfi.com/?referralcode=profitcomesfirst Profit Answer Man Facebook group: https://www.facebook.com/groups/profitanswerman/ My podcast about living a richer more meaningful life: http://richersoul.com/ 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.

    50 min
  3. JAN 27

    Mid 8-Figure Exit Lessons: How to Avoid Millions in Taxes and Regret After the Sale with Nathan Collins

    Mid 8-Figure Exit Lessons: How to Avoid Millions in Taxes and Regret After the Sale with Nathan Collins   Find Rocky Lalvani @ www.ProfitComesFirst.com or email him at rocky@profitcomesfirst.com   Most business owners think the hardest part of selling a business is the deal. But the real danger often shows up after the sale: the taxes you didn't plan for and the identity shift you didn't expect In this episode of Profit Answer Man, Rocky Lalvani sits down with Nathan Collins, a former CEO who sold his business for a mid-eight-figure exit—and then realized he wasn't personally prepared for what came next. Nathan shares what he wishes he'd done differently, how business owners should think about diversifying outside the business, and why "exit readiness" is about far more than financials.    In This Episode, You'll Learn: Why many business owners hesitate to take money out of the business and invest elsewhere—and how that lack of diversification increases risk.  The difference between preparing your business for sale vs preparing your life for the exit.  The common "cheap" mistake founders make that can cost millions in avoidable taxes.  Why your CPA and financial advisor often don't proactively plan together—and how that gap hurts business owners.  What happens emotionally the day after the sale (and why so many owners feel lost even after a big win).  The "liminal phase" after an exit—and how to prepare for it with purpose, community, and health.  How systems like EOS/Traction and having the right people in the right seats can make your company stronger—and more sellable.  Why many exits are forced (not planned) and why "exit-ready" equals resilience.    The Big Takeaway: A profitable exit is not the finish line. If your identity, purpose, and community are built entirely around your company, selling can create a void—fast. And if you haven't done personal tax planning ahead of time, the IRS can take a bigger share than necessary. Exit planning is not just about maximizing the sale price. It's about being ready financially and personally—so you can enjoy the outcome you worked so hard to create.    Bio:  Nathan Collins is a wealth manager at Raymond James and a former CEO who sold his business through a successful middle-market process. He now helps business owners optimize business value, plan for liquidity events, and avoid the costly personal and financial mistakes that often happen around exits.    Links: Website: https://www.raymondjames.com/founderwealthstrategies/ LinkedIn https://www.linkedin.com/in/nate-collins/ Exit Planning Workshop Webinar: https://www.raymondjames.com/founderwealthstrategies/events nate.collins@raymondjames.com   Conclusion: Whether you plan to sell in 3 years or 30 years, the best time to prepare is now. Build a business that can run without you, diversify so you're not financially trapped in one asset, and make sure you're building a life you actually want to "retire into."   #ProfitAnswerMan #ProfitFirst #BusinessProfit #CashFlow #BusinessOwners #ExitPlanning #TaxPlanning #WealthManagement #EOS #Traction   Watch the full episode on YouTube: https://www.youtube.com/@profitanswerman Source Sign up to be notified when the next cohort of the Profit First Experience Course is available! Free Copy of the Profit Blueprint Book:  Monthly Newsletter signup:  Relay Bank (affiliate link):  Profit Answer Man Facebook group:  My podcast about living a richer more meaningful life: http://richersoul.com/ Source 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.

    36 min
  4. JAN 20

    From Bankruptcy at 24 to $35M: Building Profitable Business Through Discipline and Purpose with Mike Chaput

    Find Rocky Lalvani @ www.ProfitComesFirst.com or email him at rocky@profitcomesfirst.com   From Bankruptcy at 24 to $35M: Building Profitable Business Through Discipline and Purpose with Mike Chaput   What if the worst business failure of your life became the foundation for 26 years of unbroken profitability?   At 24, Michael Chaput bought a business that went bankrupt. At 50, he runs a $35 million company that hasn't had a single unprofitable month in 26 years—not through 2008, not through COVID, not ever. In this episode, Michael shares the hard-won lessons from hitting rock bottom and how financial discipline, tough decisions, and the right philosophy about profit built a business that never bleeds red.   In this episode, you will learn: Why "caring too much" kills deals: How poor due diligence and bad leases destroyed Michael's first business and the bankruptcy lessons that changed everything. The 17% margin discipline: How Michael uses peer benchmarking to spot expense ratio problems (like rent at 20% vs. industry standard of 3-6%) and maintains profitability every single month. Why keeping poor performers is cruel: The science of play vs. economic pressure and why letting underperformers go is the kindest thing you can do for them and your team. Profit as constraint, not purpose: Michael's philosophy that profit is like staying in bounds in basketball—necessary, but not the point of the game. How operating systems create alignment: Using Rockefeller Habits and EOS to turn vision into action and inspire "play" instead of toil. The 1,000-book advantage: Why reading one business book per week for 20 years built the foundation for every major decision.   Key Takeaway: Profitability isn't luck—it's discipline and hard decisions made quickly. Michael Chaput's 26-year track record without a single red month proves that success comes from three non-negotiables: (1) knowing your numbers cold (benchmark expense ratios, target specific margins like his 17%), (2) making tough calls fast (letting poor performers go is kindness, not cruelty), and (3) treating profit as a constraint, not your purpose. Bad deals have long tails, so care enough to walk away. Build a clear vision that inspires "play" instead of just paychecks. And never stop learning—Michael read 1,000+ business books over 20 years. That's how you build a business that never bleeds red, no matter what the economy throws at you.   Bio: Mike Chaput bought his first company at 24 with borrowed money and no experience, a move that led to early failure and bankruptcy, but also ignited a lifelong drive to understand what makes businesses succeed. He took those hard-won lessons and built a new company from the ground up, scaling it to $35M in revenue with 140 employees, best-in-class margins, and a values-driven culture. With degrees from Columbia Business School and UC Berkeley's Haas School of Business, Mike blends top-tier strategy with real-world execution. As a founder and the CEO of Endsight, as well as a board member and trusted advisor to multiple high-growth companies, Mike brings a grounded, operator's perspective to leadership, sustainable growth, and building resilient teams with purpose.   Links: Website: https://www.endsight.net/ LinkedIn: https://www.linkedin.com/in/michaelchaput/ Instagram: https://www.instagram.com/thechaputperspective/ YouTube: https://www.youtube.com/@thechaputperspective   Conclusion: Michael Chaput's journey from bankruptcy at 24 to building a $35 million company with 26 years of unbroken profitability isn't just inspiring—it's a masterclass in what separates businesses that thrive from those that merely survive. The lessons are clear: financial discipline beats hope, tough decisions beat comfort, and a uniting vision beats just working for a paycheck.   If you've been struggling with profitability, tolerating poor performers, or feeling like you're constantly firefighting, this episode gives you the blueprint to break free. Start by knowing your numbers, set your margin target, benchmark against your peers, and have the courage to make the hard calls. Remember: profit is necessary, but purpose is what makes the game worth playing.   #ProfitAnswerMan #Profitability #BusinessGrowth #Entrepreneurship #SmallBusiness   Watch the full episode on YouTube: https://www.youtube.com/@profitanswerman Sign up to be notified when the next cohort of the Profit First Experience Course is available! Free Copy of the Profit Blueprint Book: : https://lp.profitcomesfirst.com/landing-page-page  Monthly Newsletter signup: https://lp.profitcomesfirst.com/newsletter-signup Relay Bank (affiliate link): https://relayfi.com/?referralcode=profitcomesfirst Profit Answer Man Facebook group: https://www.facebook.com/groups/profitanswerman/ My podcast about living a richer more meaningful life: http://richersoul.com/ 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.

    49 min
  5. JAN 13

    How to Legally Pay Less Tax as a Business Owner with Former IRS Agent Carlotta Thompson

    How to Legally Pay Less Tax as a Business Owner with Former IRS Agent Carlotta Thompson   With Former IRS Agent Carlotta Thompson Most business owners believe high taxes are just the price of success. They're wrong.   In this episode of Profit Answer Man, Rocky sits down with former IRS agent turned tax strategist Carlotta Thompson to reveal how the tax system really works, what actually triggers audits, and how profitable business owners legally keep more of what they earn. This is not about loopholes or risky moves. It's about understanding the rules well enough to play the game correctly.   In This Episode, You'll Learn: What actually triggers IRS audits and why most business owners worry about the wrong things. The common tax and bookkeeping mistakes that quietly raise red flags with the IRS. Why home office and mileage deductions are usually not the real problem. How poor recordkeeping costs business owners money even when deductions are legitimate. Why constantly moving money between Profit First accounts is a warning sign, not a solution. When an S Corp makes sense and when it can actually cost you more in taxes. Why starting as an LLC gives you more flexibility as your business grows. How to shift from asking "Can I deduct this?" to "How can I deduct this legally?"   The Big Takeaway: Paying less tax is not about gaming the system. It's about: Knowing what the IRS actually looks for Building clean, consistent financial systems Aligning profit, tax strategy, and long-term vision When you do that, audits become less scary, profit becomes more predictable, and your business stops leaking money quietly.   Bio: Carlotta Thompson is a Founder + CEO When Carlotta was 14, she remembers becoming enthralled with a booklet on preparing taxes. She decided then that she wanted to work for the IRS, so at 14 years old, she began studying tax law with the dream of working for the Internal Revenue Service (IRS). Shortly after attaining her dream of working for the IRS, Carlotta realized that the IRS isn't actually in place to help small businesses like she'd thought and it felt like she was working for the wrong side. As an auditor, she saw tons of tax returns with sometimes hundreds of thousands of dollars of missed deductions that were detrimental for the client. Carlotta had a bigger dream and mission to directly help business owners pay the least tax legally possible, so what began as a ministry has evolved into Tax Strategists of America!  She now has a Pathway to Zero™ program helping business owners pay the least taxes legally possible!   Links: Website: https://taxstrategistsofamerica.com/ Facebook: https://www.facebook.com/carlotta.thompson.1 Instagram: https://www.instagram.com/carlottathompsonfinance?utm_source=ig_web_button_share_sheet&igsh=ZDNlZDc0MzIxNw%3D%3D TikTok: https://www.tiktok.com/@carlottathompsonfinance?is_from_webapp=1&sender_device=pc YouTube: https://www.youtube.com/@carlottathompsonfinance   Conclusion: Paying less tax is not about shortcuts or loopholes. It's about clarity, structure, and intention. When you understand what the IRS actually looks for, keep clean records, and align your entity and profit strategy with your long-term goals, taxes stop feeling like a constant threat. This episode with Carlotta shows that real tax savings come from running a better business, not from taking bigger risks.   #ProfitAnswerMan #ProfitFirst #BusinessProfit #TaxStrategy #CashFlow #SmallBusinessFinance #BusinessOwners #IRS #TaxPlanning #FinancialClarity #EntrepreneurLife #KeepMoreProfit #BusinessSystems #MoneyMindset   Find Rocky Lalvani @ www.ProfitComesFirst.com or email him at rocky@profitcomesfirst.com   Watch the full episode on YouTube: https://www.youtube.com/@profitanswerman Sign up to be notified when the next cohort of the Profit First Experience Course is available! Free Copy of the Profit Blueprint Book: : https://lp.profitcomesfirst.com/landing-page-page  Monthly Newsletter signup: https://lp.profitcomesfirst.com/newsletter-signup Relay Bank (affiliate link): https://relayfi.com/?referralcode=profitcomesfirst Profit Answer Man Facebook group: https://www.facebook.com/groups/profitanswerman/ My podcast about living a richer more meaningful life: http://richersoul.com/ 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.

    50 min
  6. JAN 6

    The Financial Model Every 7–8 Figure Business Needs for Predictable Profit with Salvatore Tirabassi

    The Financial Model Every 7–8 Figure Business Needs for Predictable Profit with Salvatore Tirabassi   Most business owners don't lack data. They lack clarity.   They have a P&L, a balance sheet, maybe even a dashboard. But when a real decision shows up—Can I afford this hire? Should I scale marketing? Why did margins drop again?—the numbers don't give a clear answer.   That's where growth starts to feel chaotic.   In this episode of Profit Answer Man, Rocky Lalvani sits down with fractional CFO and former private equity investor Salvatore Tirabassi to unpack what separates "clean books" from a finance function that actually drives predictable profit.   The core insight is simple but uncomfortable: bookkeeping is not finance. And confusing the two is one of the biggest reasons growing businesses stall, leak cash, or scale problems instead of profit.   In This Episode, You'll Learn: Why clean books and tax-ready reports are not the same as decision-ready financials How a single, integrated financial model replaces disconnected spreadsheets and gut decisions What driver-based forecasting looks like and why it creates predictable profit at scale How funnel math, capacity planning, and cash flow must work together to support growth Why tracking customer acquisition cost by channel matters more than obsessing over lifetime value How private-equity thinking exposes hidden profit leaks in people, process, and culture   Key Takeaway: If your financial reports are technically accurate but not helping you decide what to do next, the problem isn't effort—it's the model. Upgrade from bookkeeping to real finance, and your numbers will finally start working for you instead of against you.   Bio: As a seasoned finance professional with over 24 years of experience, his journey began with a passion for helping businesses thrive. After earning his degrees from Harvard and Wharton, he spent 15 years in venture capital, where he learned the ins and outs of what makes businesses successful. This experience provided him with a deep understanding of the challenges entrepreneurs face, especially in emerging and family-owned businesses.   Transitioning to the role of CFO in a high-growth company, he discovered his true calling: empowering business owners to take control of their financial futures. He founded CFO Pro + Analytics to provide virtual and fractional CFO services that demystify finance and make it accessible to all. His approach is built on a business owner-first mindset, where he prioritizes the unique needs of each client, helping them see their financial data not just as numbers, but as powerful tools for growth.   Throughout his career, He developed a methodology that combines strategic financial modeling with actionable insights. His goal is to simplify complex financial concepts so that entrepreneurs can make informed decisions confidently. Whether it's guiding them through capital raising or enhancing their operational efficiency, he strives to provide clarity and direction that drives real results.   He believes that every business has the potential to reach new heights with the right financial strategy.   Links: Website: https://cfoproanalytics.com/   Facebook: https://www.facebook.com/SalvatoreTirabassi  LinkedIn: https://www.linkedin.com/in/stirabassi Instagram: https://www.instagram.com/salvatoretirabassi/   Substack: https://salvatoretirabassi.substack.com/   Conclusion: Chaotic growth is rarely a revenue problem. It's a clarity problem. As this conversation with Salvatore Tirabassi makes clear, most businesses don't struggle because they lack effort or ambition. They struggle because their numbers are built for compliance, not for decisions. When financial reports are shaped by tax rules instead of business drivers, owners are left guessing, reacting, and hoping growth will eventually smooth things out. Predictable profit comes from upgrading how you think about finance. One integrated model. One source of truth. Clear drivers that connect marketing, sales, capacity, and cash. When those pieces line up, the noise disappears. Decisions get easier. Teams align. And growth becomes intentional instead of exhausting. Whether you plan to sell or simply want a calmer, more profitable business, running your company with CFO-level discipline gives you options. And options are what real freedom looks like.   #ProfitAnswerMan #BusinessFinance #FinancialClarity #CashFlowManagement #Profitability #FractionalCFO #FinancialModeling #DriverBasedForecasting #PredictableProfit #MarginManagement #BusinessGrowth #ScalingBusiness #RevenueDrivers #CEOInsights #7FigureBusiness   Watch the full episode on YouTube: https://www.youtube.com/@profitanswerman Sign up to be notified when the next cohort of the Profit First Experience Course is available! Free Copy of the Profit Blueprint Book: https://lp.profitcomesfirst.com/landing-page-page  Monthly Newsletter signup: https://lp.profitcomesfirst.com/newsletter-signup Relay Bank (affiliate link): https://relayfi.com/?referralcode=profitcomesfirst Profit Answer Man Facebook group: https://www.facebook.com/groups/profitanswerman/ My podcast about living a richer more meaningful life: http://richersoul.com/ 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.

    43 min
  7. 12/30/2025

    How to Build a Business Fortress: Liquidity, Cash Flow, and Exit Readiness with David Barnett

    How to Build a Business Fortress: Liquidity, Cash Flow, and Exit Readiness with David Barnett   Build a Business Fortress: Why Liquidity Beats Leverage and Most Businesses Never Sell   Most owners assume the big payoff will come when they finally sell the business. The hard truth is that roughly 80 percent of small businesses listed for sale never actually sell as going concerns. The real payoff is in the years of ownership: the cash flow you extract, the wealth you build outside the business, and the resilience you create so you can survive the next punch in the face. In this episode of Profit Answer Man, David Barnett, author of The Business Fortress, joins me to talk about how to make your company stronger, safer, and more valuable long before you ever talk to a buyer.   In This Episode, You'll Learn:  Cash Flow Problems Are Symptoms, Not Causes. Owners often shout "I have a cash flow problem" and immediately reach for more sales or more debt. David reminds us that cash flow pain is usually a symptom of a broken model: mispriced services, hidden payroll costs, or not truly knowing what it costs to deliver your product. A missing 4–5 percent in labor burden or benefits can wipe out half your planned profit before you even notice. Liquidity Is More Powerful Than Leverage. Everyone celebrates "other people's money." David flips the script: leverage depends on someone else's lending decision; liquidity is under your control. Lines of credit can be cut, termed out, or called just when you need them most. A healthy cash reserve inside your business lets you ride out downturns and seize opportunities when competitors stumble. Growth Can Quietly Crush Your Cash. On paper, growth looks amazing. In reality, fast growth often demands a massive "investment in accounts receivable." You hire staff, buy equipment, and deliver work long before you get paid. Without a plan for the cash gap, owners end up borrowing heavily just to float receivables, which weakens the balance sheet and increases risk. The Real Risk: Will Cash Flow Continue After You Leave? Buyers ask two questions: "What is the cash flow?" and "Will this cash flow continue after I become the owner?" The second question determines whether they do the deal at all and what terms they demand. If all the goodwill lives in you as the owner, or in a few concentrated customers, the risk to the buyer skyrockets and the value of the business drops. Most Businesses Never Actually Sell. David shares a sobering statistic: about 80 percent of businesses listed on the big marketplaces never sell as operating companies. Some equipment may get sold off, but the business itself doesn't transfer. That's why he urges owners to build wealth both inside and outside the business, treat the company as a cash-flowing asset, and have a plan B that does not depend on a big exit check.   Key Takeaway: Treat your business like a fortress you're slowly building over time: strengthen cash flow, build liquidity, reduce dependence on debt, and design the company so cash flow continues even after you step away.   Bio: Barnett loves to say that it took him 10 years to un-learn what he was taught in business school.  University had trained him to be a middle-manager in big enterprises, he was totally unprepared for the realities of small business. After a career in advertising sales, Barnett started several businesses including a commercial debt brokerage house.  Helping to finance small and medium sized businesses led to the field of business brokerage.  Over several years, Barnett sold dozens of businesses for others while also managing his own portfolio of income properties and starting his career as a local private investor. Barnett regularly consults with professionals and banks on business and asset values.  Presently he also works with entrepreneurs and would-be entrepreneurs around the world who are buying, selling or trying to improve their businesses.   Links: Blog: www.DavidCBarnett.com LinkedIn: http://ca.linkedin.com/in/davidbarnettmoncton Facebook: https://www.facebook.com/DBarnettMoncton/ YouTube: https://www.SmallBusinessAndDealMakingPodcast.com Soundcloud: https://soundcloud.com/dbarnettmoncton Instagram: https://www.instagram.com/dbarnettmoncton/ Twitter: https://twitter.com/DBarnettMoncton Email List Signup: https://www.DavidCBarnettList.com   Conclusion: Building a Business Fortress isn't about chasing bigger numbers or hoping for a heroic exit someday. It's about creating a company that produces steady cash flow, protects you when the economy tightens, and gives you real options for the future. As David Barnett reminds us, the real payoff is in the years you own the business—not in a sale that may or may not happen. When you prioritize liquidity, understand your true costs, reduce dependence on debt, and build wealth outside the business, you create a fortress that can withstand storms and deliver lasting freedom. The question isn't whether your business will sell someday—it's whether it's strong enough to support the life you want today.   #ProfitAnswerMan #BusinessFortress #CashFlow #SmallBusinessFinance #Liquidity #ExitPlanning #BusinessSale #Entrepreneurship #BusinessOwner #FinancialFreedom   Watch the full episode on YouTube: https://www.youtube.com/@profitanswerman Sign up to be notified when the next cohort of the Profit First Experience Course is available! Free Copy of the Profit Blueprint Book: https://lp.profitcomesfirst.com/landing-page-page  Monthly Newsletter signup: https://lp.profitcomesfirst.com/newsletter-signup Relay Bank (affiliate link): https://relayfi.com/?referralcode=profitcomesfirst Profit Answer Man Facebook group: https://www.facebook.com/groups/profitanswerman/ My podcast about living a richer more meaningful life: http://richersoul.com/ 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.

    47 min
  8. 12/23/2025

    The Referable Client Experience with Stacey Brown Randall

    The Referable Client Experience with Stacey Brown Randall   Most business owners say they want more referrals. Very few are actually drowning in them. The default strategy is to do good work, hope people notice, and maybe ask for introductions when things get slow. In this episode of Profit Answer Man, I sit down again with referral expert and author Stacey Brown Randall to talk about why that approach does not work and how to build a truly referrable client experience.   Stacey has spent years helping small business owners generate referrals without asking, without incentives, and without feeling manipulative. Her new book, The Referrable Client Experience, dives into how your day to day client journey can become your most powerful referral engine.   In This Episode, You'll Learn: Referrals, Introductions, and Word-of-Mouth Are Not the Same Thing. One of the first big shifts Stacey brings is simply defining our terms. A referral happens when a referral source connects you directly to a prospect, clearly identifies a need, and positions you as the solution. An introduction is just a connection. There is no identified need. Word-of-mouth buzz is when someone talks about you or gives out your name, but you are never actually connected. Most business owners lump all three together. The problem is that only one of them consistently leads to new clients. If all you are getting is introductions and vague "I mentioned you to someone" comments, you are not really running a referral strategy. Your Small Size Is Your Superpower. When we talk about "client experience," most people picture big company initiatives, software, and dashboards. Stacey defines client experience more simply as how your client feels while they work with you. That is where small business wins. You can: Make clients feel seen and remembered, Adjust quickly when something is off, Add personal, human touches that big companies could never scale, If you want to go from a good client experience to a referrable one, you have to understand the emotions you are creating along the way and be intentional about them. The Science Behind Why Referrals Happen. Referrals are not magic. Stacey frames them through three lenses: What happens in the brain of the referral source. When someone makes a great referral, "feel good" chemicals fire in their brain. They get to be the hero who solved a problem for someone they care about. It is about them helping the prospect, not about you. The psychology of trust. Referral sources do not need to know every credential or detail about you. What matters is that they trust you as a person and do not forget you. That trust is nurtured by consistent, human touch points, not by dumping your resume on them. Behavioral economics. Instead of manipulating reciprocity, Stacey focuses on the positive side: using surprise, delight, and variety in your touch points so people remember you and feel connected to you. Gifts, Touch Points, and What Actually Lands. Gifts can be powerful but they are often used poorly. Stacey's guidance: A gift should not be tied directly to a single referral, or you train people to expect a payout each time. For each referral source, build a plan of five to seven touch points over the year that happen whether or not referrals come in. Use gifts sparingly, and make them meaningful, humorous, or heartfelt enough to be memorable. If it took you two seconds to choose and send, it probably will not stand out. For actual referrals as they happen, Stacey recommends something simple and powerful: a handwritten thank you note. Be Strategic, Not "Spray and Pray". When owners want more referrals, they often default to more networking. More coffee dates, more events, more people. Stacey calls out the problem with this "spray and pray" approach. Instead, she encourages business owners to: Identify their ideal referral sources by asking, "Who regularly sees my ideal client before I do?" Focus on building real relationships with those few instead of trying to convert every person in the room. Accept that it is a numbers game, but a strategic one: you may meet a hundred people and end up with three or four true referral partners.   Key Takeaway: Referrals are not a mystery reserved for the lucky few. They are the predictable result of a client experience that makes people feel seen, cared for, and confident enough to put their reputation on the line for you. When you understand the science behind referrals and build a simple plan around your best referral sources, you can stop chasing cold leads and start welcoming more ideal clients who already trust you.   Bio: Stacey Brown Randall is the author of the new book, The Referable Client Experience, and the multiple award-winning book, Generating Business Referrals Without Asking. She is also the host of the Roadmap to Referrals podcast. Stacey teaches business owners how to generate referrals naturally…without manipulating, incentivizing, or even asking. She has been featured in national publications like Entrepreneur magazine, Investor Business Daily, Forbes, and more. She received her Master's in Organizational Communication and is married with three kids.   Links: Websites: https://staceybrownrandall.com/ https://referableclientexperience.com/ Social Media: www.linkedin.com/in/staceybrandall https://www.instagram.com/staceybrownrandall/ https://www.facebook.com/StaceyBrownRandall https://www.youtube.com/@referralswithoutasking   Conclusion: Referrals don't come from luck, pressure, or clever tactics—they come from the way your clients and referral sources feel throughout their experience with you. Stacey's insights remind us that when you create a journey rooted in trust, care, and thoughtful connection, referrals become a natural byproduct—not a struggle. By understanding the science behind why people refer and building a simple, intentional plan around your best referral sources, you can replace unpredictable lead generation with a reliable, relationship-driven system that grows your business sustainably and profitably.   #ProfitAnswerMan #SmallBusinessGrowth #Referrals #ClientExperience #BusinessProfit #CashFlow #TrustedAdvisor #BusinessStrategy   Watch the full episode on YouTube: https://www.youtube.com/@profitanswerman Sign up to be notified when the next cohort of the Profit First Experience Course is available! Free Copy of the Profit Blueprint Book: https://lp.profitcomesfirst.com/landing-page-page  Monthly Newsletter signup: https://lp.profitcomesfirst.com/newsletter-signup Relay Bank (affiliate link): https://relayfi.com/?referralcode=profitcomesfirst Profit Answer Man Facebook group: https://www.facebook.com/groups/profitanswerman/ My podcast about living a richer more meaningful life: http://richersoul.com/ 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.

    44 min
4.9
out of 5
34 Ratings

About

Hi, I'm the Profit Answer Man! The Profit Answer Man podcast is a weekly show hosted by Rocky Lalvani, a business coach and Certified Profit First Professional. In each episode, Rocky shares his expertise on how to scale profit and cash flow for 7-8 figure businesses. Episode 1 is the why, 2 - is Mike Michalowicz, and 3-13 are Rocky's take on each chapter in the book. The Profit Answer Man podcast is designed for small business owners, entrepreneurs, and anyone else looking to improve their financial management skills. Rocky covers a wide range of topics, including how to prioritize profit, manage cash flow, and grow your business. One of the things that sets the Profit Answer Man podcast apart is Rocky's engaging and entertaining style. He uses anecdotes, humor, and relatable examples to make the concepts he's discussing easy to understand and apply. If you're a small business owner looking for practical advice on how to improve your financial management and increase profitability, the Profit Answer Man podcast is definitely worth a listen. Whether you're just starting out or have been in business for a while, you'll find plenty of valuable insights and tips that can help you take your business to the next level. Sign up to be notified when the next cohort of the Profit First Experience Course is available! http://bit.do/profitblueprint More about making profitability simple: http://profitcomesfirst.com/ Profit Answer Man Facebook group: https://www.facebook.com/groups/496018144624882/ My podcast about living a richer more meaningful life: http://richersoul.com/ Any financial advice is for educational purposes only and you should consult with an expert for your specific needs.

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