Profitpreneurship: Creating a Business that Produces Outstanding Financial Results
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Personally I loved the straightforward and blunt attitude Carlton portrays in this book. Carlton writes in a manner which appeals to seasoned business owners and newbies like myself. Honest, right to the point, helpful, and easy to follow. Great book. Profit is such an important aspect, especially in small businesses.
I joke but Carlton does a great job of taking a simple concept and giving you actionable items to actually increase profitability. The chapter that talks about how to utilize employees is especially insightful.
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Cooking is such a dirty word these days. Overall: Good? The book is intelligent without the enigmatic use of Ph. The niche for small businesses is like a warzone; an owner has to tread on a pile of dead businesses to rise and shine. I thought that this book was really simple to read, but it provides really good insight on how to be a successful entrepreneur, which is what I eventually want to do. The author uses income statements to illustrate his point, which I found really helpful.
I especially liked how the author uses a light tone and a first person view, unlike the textbooks I have to read all the time. According to Ren J. How did you deal with that? RC: Great question. It was tough. I mean because it was a decent size client. I might was well work for someone if I am going to be tied to one relationship.
So number one, I really learned that and that helped recover. Number two, at that point, I figured I liked this. I retooled it. I figured out a couple, another thing I really figured out was, in that situation, was that when I started working for this client, I stopped selling. I stopped marketing. So I figured out I had to get beyond me.
I had to get contractors or employees or something fast and not make money for awhile which was tough. RC: Well my first hire was I started hiring contractors a little bit, so getting people and I was actually doing part-time teaching to make ends meat in terms of bills and things like that.
So I was doing some of that. My first few hires were nightmares. But take away the budget, I mean you think people want to be in an entrepreneur environment? They want a paycheck. RC: Right. So I built it out over two years saying he could earn up to X amount percentage of the firm over two years. After six months we were doing so much better because I had the talent now which was her at the time that could say I could either pay you market rate or give you more equity. She opted for more compensation and we went from there and she has been with me ever since. RC: Just on the job boards and things like that.
I mean it was just a normal job posting which is not what we do now. I mean we really leveraged our network to find people. Our last couple hires have all been from networks and relationships. So what did you see in her that really made it work for you guys? RC: She has a great personality. We were just a good fit, good skill set and it clicked. One of the things, I mean I really hire on my gut. Is this someone I want to work with?
About Ren Carlton
If I was a client, would I hire this person? Would I get the warm and fuzzy? RC: Me too! So getting that mix is just challenging a lot of times. So tell me what you guys actually do for people. RC: What we like to do is provide an outsource solution to clients. So basically we help businesses make better business decisions and business owners. Most business owners get sales and cash and things like that but what business owners sometimes stumble on is going forward now. So you have all this great data about your business.
What if you want to double that? What investment is required?
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What types of moves you have to make? Do I buy that piece of equipment? Do I expand into another office? JT: So you pretty much just look at the data and then tell them based on the data that you guys looked at this is the sort of suggestions that you have? Now what if we tweaked the plan?
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What if we make an investment here or in three months we do that? So we get into their budgeting, gets into accounting software, gets into staff training and development, how strong the staff is. It gets into their dashboards and how they measure performance.
So our first step is to really do a deep dive and see how strong these 16 areas are in the company. JT: Perfect. So what are some tangible tactics? What would you suggest them to do?
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RC: Well you have to have some sort of bookkeeping. I mean the data, you can manage your business on a checkbook for so long. I mean you can only go so far with the checkbook accounting system. Okay, where are you headed right now? What makes that plan at risk? W hat makes that plan, how can you double or add 30 percent to that or 40 percent?
Things are going to change but at the end of the day building that plan and building that budget to say I want to do this. JT: So how do we do that?
Tell us some tips for projecting revenue for someone that has never done it before. So what factor, I mean did you have salespeople? Did you have one or two big engagements?