Think of business profit in terms of physics: You can spend more than you make only for a limited time before gravity takes over and you find yourself in a crater of debt. While this analysis seems like common sense, many business owners continue to confuse revenue with profit; and, after market based wages are paid, investors are paid off, and taxes are accounted for, among other expenses, their expected profit is often not enough to cover their own salary — much less a return on investment for themselves.
Greg Crabtree, entrepreneur and founder of Crabtree, Rowe, and Berger, PC, is dedicated to helping entrepreneurs fine tune the economic engine of their business for maximum, true profitability. In his new book, Simple Numbers, Straight Talk, Big Profits, Crabtree explains how entrepreneurs can generate profit by first identifying the solutions to the four most common misconceptions — owner's salary, profit targets, labor productivity, and business physics — then incorporating the learned tactics into their companies' financial practices.
"Many business owners can't comprehend that the only way you can grow a business without profits is to have a streamline of cash to fund it," says Crabtree. "Since this is not the case with most entrepreneurs, it's crucial to execute methods to initiate and strengthen business profit."
Simple Numbers, Straight Talk, Big Profits is broken up into clear, easy-to-follow sections. The first section of the book analyzes the solutions to the main problems that Crabtree has encountered in working with entrepreneurs. In the second section, Crabtree builds upon these solutions to provide entrepreneurs with the 'action plan' of how to build their profit by following the 4 forces of cash flow: taxes, debt, core capital, and distributions.
"Once profitability is established, entrepreneurs can easily use the '4 forces of cash flow' to account for all expenses before reinvesting money back into their company," Crabtree adds.
I read the first forty pages of Simple Numbers and thought, I sure wish I had this book some thirty years ago when I was beginning my entrepreneurial journey... It surely would have saved me time and money. My feelings were only further fueled as I made my way through the balance of the book. Entrepreneurs, don't overlook this one!
Greg Crabtree is known as the leading expert for emerging and global entrepreneurs seeking to drive peak financial performance. His concepts, tools, and philosophies have a positive impact on the global economy, one entrepreneur at a time. Read this book, implement its practices, and become the top-performing company in your industry.
Save yourself a million dollars and buy Greg's Book!
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