The Design Business Show 239: Maximizing Profit and Cashflow with Expert CFO Strategies with Andrea Jenson

Andrea Jenson is the Founder of The Cash Flow CFO – the 7-Figure Entrepreneur’s Solution to Scaling a PROFITABLE business, and the creator of the Predictable Profits Accelerator – a five (5) step holistic approach to creating predictable business profits.

The Cash Flow CFO team provides fractional CFO Services, Fully Outsourced Accounting Teams and Financial Training Programs. Andrea’s modern, boutique approach provides well thought-out, practical solutions, designed to help entrepreneurs run and scale their business faster & easier.

As an investor and entrepreneur, Andrea understands first-hand what business owners need most to grow & scale. Prior to opening her firm, Andrea ran Corporate Accounting Departments for both Public and Private Organizations. Her work experience includes Starwood Hotels, Venture Capital and Multi-Million dollar Online & Offline Businesses.

Today Andrea’s goal is simple: to empower business owners to confidently OWN their finances and their future and use their business as a vehicle to create personal, legacy wealth. In addition to sitting on the Board for several Non-Profits in her community, Andrea is a wife, mother, soccer player, and passionate volunteer who spends her free time helping kids with cancer thrive, and shelter dogs find their forever homes.

Here’s what we covered on the episode:

Andrea is a fourth generation entrepreneur and while she was in college on a soccer scholarship, she had to choose a major and chose accounting
As Warren Buffet says, accounting is the center of business, and she kept learning how business models play out and then she graduated with a business degree
After graduating, she got a job at a venture capital firm and there she was able to compare what she did there with what she knew in the restaurant industry
She noticed the big disconnect between the industries, what small businesses do compared to the big businesses and that’s how her business was born
While Andrea understood accounting, she didn’t have a ton of background in business tasks like sales and marketing
When she first started out, it was a lot of trial and error for the first couple of years, tried to do it on her own, and now has a team of 30 people working for her

A closer look at how Andrea’s Company operates

Andrea’s company offers fractional CFO services and by focusing on implementing systems, she was able to grow the business and hire more people
Andrea explains the role of a CFO and benefits for businesses using the metaphor of driving a car to explain the difference between a CFO and other financial professionals
A CFO is described as the person looking out of the front windshield, providing future forecasts and strategic planning
Every month, they look at budget and actuals; so by having a monthly look at that they’re able to prevent money leaks in the business and increase finances
Why a forward looking process can better help you use your resources
They help business owners make more money by using historical data to forecast the future and strategically deploy cash
Strategic financial planning includes decisions like investing in hiring more staff, purchasing equipment, or expanding office space
Right now, Andea’s company offers done-for-you services, and they plan to offer workshops + courses to be able to serve more people
Why her company focuses on using financial anchors such as budgets, forecasts, and job costing help businesses stay on track and adapt when needed
These anchors provide a big game plan while allowing for adaptation and adjustment
How Andrea’s team meets for a “Workshop Wednesday” to close gaps in their current processes as they work with teams

The benefits of having a CFO inside your business

Andrea highlights the constant stress and juggling that business owners experience, and how having a CFO can alleviate this stress by allowing the business owner to focus on sales, marketing, and fulfillment
Working with a CFO can fine-tune the business model and make it more profitable through incremental adjustments
Not all business owners have the financial skills to make these adjustments, which is where a CFO can provide a return on investment
Having a CFO not only benefits the business owner by reducing stress but also makes the business more profitable and efficient

The approach Andrea took when it came to branding her business

Andrea’s brand aims to create a comfortable and safe space for business owners unsure about financial matters
How a lot of her clients made her clients feel bad about their past moves; and her brand uses the approach of understanding that it’s okay, we just move on from here
Their logos, company values, colors and marketing they share the same message
They want businesses to feel comfortable working with them; and the approach of not making people feel bad about their situation
They are exploring areas such as benefits, insurance, and staffing to serve their clients in different capacities
How there’s currently a shortage of accountants drives the need for strategic partnerships to attract quality accountants
Their primary focus is on providing excellent customer service and continuously improving their offerings
Timing is crucial in business, and some factors can be controlled while others cannot
COVID made it difficult to find good team members, emphasizing the need for strategic hiring and planning
A staff utilization schedule helps determine revenue generation based on the existing team
Budgeting should consider the time period before new hires can generate revenue and align with sales activity
Andrea’s company aims to serve their clients as it grows and evolves, exploring various avenues such as partnerships and joint ventures
How you can connect with Andrea on her website and you can also check out her YouTube channel