152 Paying the ‘Profit First’ with Ronit Enos

The sustainability of a business is dependent on profit, yet many businesses operate on a tiny profit margin. Ultimately, that is why only a very small percentage of small businesses reach their 10th birthday. Most business failures can be attributed to a lack of financial awareness and understanding of how to manage finances. Too many salon owners operate on the basis of “work hard, pay my bills, and what's left over is profit.”However, that way of thinking is fundamentally flawed because, in case you haven’t noticed, there is usually very little left over!So instead of the traditional accounting method of ‘Sales minus expenses equals profit,’ we should be turning this on its head and running businesses on the ‘Profit First’ principle; ‘Sales minus profit equals expenses.’If you’re confused, stick around because my guest on today's podcast is Ronit Enos, Author of the book ‘Profit First for Salons.’In today’s podcast, we discuss:Profit margins in salons todayThe steps to increasing profitabilityThe ‘Profit First for Salons’ book…And lots more!For full show notes, links and resources mentioned visit: https://growmysalonbusiness.com/podcast/152/ Thanks so much for joining me this week. If you enjoyed this episode, please leave a review. Ratings and reviews are extremely helpful and greatly appreciated! They do matter in the rankings of the show and help other people find my podcast. I also love to hear what’s been helpful and what you love about the podcast! Just click here to review, scroll to the bottom, tap “Ratings and Reviews” tap to rate with 5 stars and “Write a Review” and let me know what your favourite part of the podcast is. Thank you for your support!And finally, don’t forget to subscribe to the show to get automatic updates.Got a question you want answered on the podcast? DM me your question over on Instagram or just come on over to connect at: https://www.instagram.com/growmysalonbusiness/