Summary of What we Achieved - Scott Geller

Scott Geller – The CFO Perspective

Episode: Summary of What we Achieved 

Date: March 29, 2021

IBGR.Network - PROFIT Radio. Everything a business owner needs to start, grow or exit a business. GROW WITH US.

INTRODUCTION
I have 20 years of experience in the finance realm that started with the Federal Reserve Bank as a bank examiner, moved on to 7 years at a Fortune 300 insurance company, and then a 50-70 person spin-off technology firm under the Allianz umbrella of companies. I was with the spin-off from day zero all the way until the unfortunate end and I had to close down the business. 

I am now a financial consultant serving primarily as a fractional or part time CFO for companies that range from start ups to young and scaling to established with stable growth. I take over from the accountant as a lean cost effective option for Profits Engineering, Cash Optimization, Strategic Acceleration and Executive Partnering committed to your success. Please contact me at scott.geller@capitisadvisors.com.

PROBLEM STATEMENT/SHOW OBJECTIVE
The Season 4 of IBGR show CFO Perspective with Scott Geller proceeded through a collection of questions from Scott's clients and others. The answers elaborated not only on the financial state, but also general diligence a business needs to succeed. The path to sustained growth, scaling capabilities, and general financial health requires the proper tools, mindset, and skills. The season's show walks down that path touching each step of planning, models, cash, pricing, profitability, innovation and tech, strategic goals, funding, and selling a business. Answers directing owners on how to prepare and accomplish each step either themselves or more likely through the actions of their CFO. Finally, Scott explains the short-cut route to a full-time expensive CFO ... gain the insight of a full-time chief financial officer at a fraction of the cost and on your terms with a fractional CFO.

WHAT YOU NEED TO KNOW

1. Planning for 2021  
2. Financial Modeling
   1. Financial Modeling is the process conducted to create a financial representation of the entity. It is the process of creating a summary of a company’s expenses and earnings in the form of a spreadsheet that can be used to calculate the impact of a future event or decision. A financial model is the tool to create proactive strategies rather than making reactive adjustments.
   2. Following the iterative budgeting or forecasting process throughout the year resulted in several advantages that allowed leadership to create more proactive solutions instead of making reactive adjustments.
   3. The Agile approach absolutely changed my finance function. 
3. Increase revenue financially
   1. Sales owns Revenue and Finance owns the numbers ... or Finance works within the business to create revenue or find pockets of revenue "financially."
4. Generating Profits
5. Innovative and tech efforts - The CFO sits at a unique crossroads within most organizations able to either cheerlead the innovation into a sprint or remove the underpinnings to trip up progress.
6. Strategic Planning - Strategic planning is tantamount to succeeding beyond the immediate horizon and I firmly believe the CFO should be at the center of this collaborative effort. The CFO should expand their traditional role from the figures to serve as the enabler, challenger, innovator, and intersection for quantifiable actions.
7. Pricing - Pricing of a firm's offerings spans a vast chasm of variables, unknowns, levers, pressures, and other conditions to the point that a standard pricing practice or direction is an obtuse goal. However, leaders can and should absolutely take efforts to understand, impact, and constantly adjust their pricing whether it is products, services, or a combination of both. Cash - Cash is like oxygen. You need to store away cash first and put it in reserves to build a a 3, 6, 12 month runway protecting the business protect against a downturn. In order to put cash away, the company needs to be profitable and also know how much is needed for that runway. Business owners need to buy into the importance of understanding the business cash flow whether they are within an expansion or retraction period.
8. Funding - A growing business will typically find a point where the working capital is insufficient to fuel the market demand or the identified potential for a company. The business needs additional cash until profits are sufficient to support the growth stage. The flip-side is a cash need for a downturn requiring funding to bridge a period of uncertainty or afford expenses until an issue, uncertainty, or bridge period abates and the business can return to generating sufficient cash.
9. Selling your business

WHAT YOU NEED TO DO Who will be responsible creating and managing these building blocks of a business finances?

1. Accountant - Brings record keeping and reporting but missing experience, "why" along with the "what" and creating proactive strategies
2. The right CFO expands the Accountant's view of "Today" with a deeper and more strategic financial perspective of "Tomorrow" while optimizing the current state
3. Owner - First do you have the skills and experience and second do you have the time or should you be focusing on your strengths within the company
4. CFO brings the value an accountant likely is unable to deliver, while the owner is likely unable to deliver due to ability and definitely prioritizing
5. Why to engage a CFO .. from my perspective
   1. Profit Engineering - You know what your accounting software tells you, but do you know the Why or How of your profitability? Let us explain your existing profitability and pinpoint untapped sources. What is 1 to 5 basis points worth to your business?
   2. Cash Optimization - Do you manage by the bank balance? It might work today, but it will deteriorate your value over time. We investigate cash uses and needs for liquidity planning in growth, retraction, or cyclical environments. Let us also ease your mind with accounting/financials checks and balances.
   3. Funding & Growth Capital - Sometimes you need to spend money to make money, but getting money isn’t fun. We own the process to access capital (equity or debt). Grow and scale your biggest investment efficiently.
   4. Strategic Accelerator - Your gut feeling is probably pretty good, but let’s forecast scenarios to create proactive strategies from your sales pipeline through operating profit. Let us help you create target metrics, KPIs, and learn from trending patterns.
   5. C-Suite Guidance - Leverage C-level experience across the organization with situational readiness. Choosing to listen and being present in the moment. Handle key stakeholders
6. Hiring a full-time strategic CFO is a major $200K+ investment. You’re not ready for that, but you do need C-level experience across the organization. Fractional CFO puts an experienced resource at your fingertips at a reasonable, predictable monthly price.
   1. Not certain where to focus
   2. You can only afford to attack one or two financials aspects of your business at a time
   3. You want to ease into a relationship with someone ... kind of like dating
   4. Gain the insight of a full-time chief financial officer at a fraction of the cost and on your terms.
7. A fractional CFO should prioritize your needs by listening to your specific situation and subsequently serving as your C-level executive across the business.
8. Gain the insight of a full-time chief financial officer at a fraction of the cost and on your terms.
9. Optimistic and at the same time realistic to create a state of enduring financial readiness within my clients.
   1. No is intellectually lazy
   2. Think in terms of the business
   3. Open communication
   4. No surprises

PREVIOUS : Episode 12 - 2021_03_22 - What if I want to sell my business?

Resources:
You can connect with Scott via his website or LinkedIn
Connect on LinkedIn
See Scott’s Website

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