January 23, 2025 • 27 mins
Discover how Greg Powell from Fifth Ridge Ventures is revolutionizing the financial landscape for medium-sized businesses in Atlantic Canada by introducing the innovative role of fractional CFOs. Greg shares his expertise on creating a flexible, three-month rolling plan tailored to address specific client needs, ensuring that businesses can effectively manage costs while prioritizing pressing issues. This episode offers a treasure trove of insights into Greg's client acquisition strategies, emphasizing the power of networking and the pivotal referrals from banks. It's a masterclass in financial consulting that highlights the immense value and peace of mind fractional CFOs bring to business owners by targeting and resolving their unique pain points.
Explore the exciting concept of a "flexible C-suite," where professionals from diverse fields band together as fractional executives to provide a comprehensive suite of services. Inspired by a motorcycle ride, Greg's partnership offers an innovative approach to business solutions, applicable in both Canada and the U.S. Gain a deeper understanding of the cultural and systemic differences between Canadian and American entrepreneurs, and how these nuances play a role in business operations. Greg also extends an invitation to U.S. businesses to leverage the cost-effective benefits of favorable currency exchange rates. Join us for an insightful journey into the challenges and triumphs of fractional CFO services, and the promising future of flexible executive solutions.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome to CFO Chronicles the secrets behind
success the go-to podcast forfractional CFOs and accounting
firm owners who want to attractmore high-paying clients and
increase their revenue.
Hosted by James Donovan fromNine Two Media, this podcast
dives into marketing strategiesspecifically designed for lead
(00:22):
generation and clientacquisition.
In each episode, you'll hearfrom industry leaders sharing
their success stories and Thankyou to your bottom line.
Speaker 2 (00:53):
Today I'm joined by Greg Powell, all the way from
Canada.
Greg, you're our first Canadianguest coming on Sussex, New
Brunswick, from Fifth RidgeVentures.
So happy to have you on theshow today.
We actually got introduced frommy cousin Tiffany probably a
month and a half ago.
Welcome to the show.
Speaker 3 (01:12):
Thank you for having me.
It's good to be here.
Speaker 2 (01:15):
Perfect.
So, greg, tell me what it'slike working with Canadian
businesses as a fractional CFO.
Everyone we've had on the show,everyone we work with primarily
is US based.
So I've heard a lot aboutdifferent strategies in the US
in regards to tax planning andjust running American businesses
(01:36):
and where that jumps in.
So what's it like north of theborder?
Tell us a little bit about that.
Speaker 3 (01:43):
Sure, well, I do actually have one US client, so
I've just started with him.
But my Canadian experience hasbeen quite rewarding, actually,
because I find that there's beena lack of that senior level
talent in accounting.
I don't know where it's allgone, but you know some of these
(02:03):
medium sized companies.
They really do need that CFOlevel help, just just not one
full time, and that's where thefractional piece comes in.
It's been working really well.
I found that here in AtlanticCanada it was a relatively new
concept.
I've lived out in New Brunswicknow for three and a half years
(02:26):
and a lot of people were justcoming out saying, oh, this is
what I need and it fits with mybusiness right, because the
population here is only so big,businesses get only so big, but
they still need that, that help,and it just hasn't been
available that's so interestingit's, I'm sure it's very similar
(02:47):
.
Speaker 2 (02:47):
You know, I'm going to say at home, being being in
New Brunswick as well, but it'sjust a case of I think a lot of
businesses don't know what theydon't know when it comes to what
a fractional CFO can evenprovide for a business.
Instead of thinking, okay, Ihave an accountant, I'm good,
this is just going to be anotherexpense for me, but the reality
(03:07):
is it's a massive investmentfor business bringing on a
fractional CFO and in how muchof an ROI you truly can get out
of, out of that higher well it.
Speaker 3 (03:18):
It doesn't have to be a massive investment, because
what I do is I try to figure outwhat the pain points are, right
.
So you have your bookkeeper,your day-to-day accountant in
your business keeping thingsrunning.
You have your year-endaccountant who will do your tax
return and your final financialstatements.
But that piece in the middlecauses some pain points.
(03:39):
So I try to figure out what theclient's pain points are and
how can we resolve them, andwhat I like to do is a
three-month rolling plan, right?
So I'll say, okay, well, youhave these issues, let's tackle
this, this and this in thistimeframe.
You know this is what you'regoing to get, this is how long
it's going to take me, this iswhat it's going to cost and the
client's sort of in control ofhow much they want to spend per
(04:02):
month and how quickly they wantto get some of these issues
resolved.
So, even though you know it's,it's not cheap to have the
fractional cfo, it doesn't haveto be a burden, right?
Speaker 1 (04:13):
you can.
Speaker 3 (04:13):
You can manage it.
Not every problem needs to besolved next week either right.
There's things that you canjust sort of work on over time
and scale up and down as theclient needs nice yeah, I think
I I got the wrong word in therelike massive investment, as in
it's.
Speaker 2 (04:30):
It's a huge beneficial investment to be
making, and massive in the senseof the impact it will have on
the business.
That that may have been taken alittle bit out of context as
far as like the monetary valuegoing in.
So tell me a little bit abouthow you're going out and finding
clients Like what's beenworking well for you to get new
(04:50):
blood coming through the door.
How you're getting on salescalls.
What does that process looklike?
Speaker 3 (04:56):
Well, most of my referrals have actually come
from the banks.
So usually a client will end upgoing to the bank needing an
extension of their line ofcredit, or they want to borrow
money for expansion, and thebank will be you know where's
your financial statements andyou know it'll be.
Their year-end statements werealready six months late and
they're now, you know, eight,nine months old.
(05:17):
So the bank's like okay, I needsomething.
You know more current and youknow realizing that there's that
gap.
You know more current and youknow realizing that there's that
gap, and so the bank's a littlebit of that willing, maybe, or
reluctant to work with somebodywithout current set of financial
statements.
That's where I've got a lot ofmy business from.
So they'll be like, okay, youneed somebody else.
And I'll happen to know, greg,he's a fractional cfo, this
(05:38):
could work.
And the introduction goes fromthere.
Um, I spend a lot of timenetworking, not only with the
banks but with other people inindustry, just letting them know
what it is that I do, because Ifind that that fractional CFO
piece is a relatively newconcept, especially here in
England, canada.
But just saying, oh, I can get aCFO and I don't have to have
(05:59):
him here every day and he's noton my payroll, but I integrate
within the company as well.
Right, so it feels like I'mtheir employee, but I'm, I'm a
contractor.
But the networking has been hasbeen just in-person meetings,
you know, whenever I have achance to attend an event.
Speaker 2 (06:16):
But, as I mentioned, the bulk of the referrals come
through banks or other financialinstitutions do you feel the
networking with banks would beas impactful living in a a
larger populated city liketoronto, like vancouver or some
of the bigger cities in the us,where there'd be a lot more
(06:38):
competition between banks andyou know fractional CFO and
professionals of your level?
Speaker 3 (06:47):
Good question, because I did start off as a
fractional CFO in Toronto and Imoved to Canada, you know,
shortly after that there'sdefinitely a lot more
competition.
Keeping that relationship is alittle bit harder in a large
city than it is in a smallercommunity.
Just yesterday I went out forlunch with a friend in Moncton
(07:08):
and I bumped into two bankersthat I deal with at lunch and
one of them happened to be withsomebody and asked me you know,
do you have a business card?
So you know the probability ofbumping into somebody that
you've networked in AtlanticCanada is higher than it is in
Toronto.
I mean, I lived in Toronto for33 years and you know I've never
(07:30):
bumped into people.
I knew just passed so manypeople on the street and
yesterday I went to lunch andbumped into two bankers.
So you know it does make it andthat and they get to know you a
little bit more, right it's,it's, the pace is a little
slower.
So the one banker I bumped intohappened to be from Sussex,
(07:51):
even though he's living inMoncton.
So we have that in common.
So the interpersonalrelationship develops
differently.
Speaker 2 (07:58):
Yeah, it's so funny just hearing that.
Being from Moncton and livingthere, that's just classic.
Going out in Moncton anywhereand running into someone you
know, whether you know they'refrom Miramichi or someone's
visiting from Halifax you justyou can't go outside without
running into someone you know,which is quite comical.
Tell me a little bit about, anddon't feel you have to give
(08:22):
away all of your secrets here,but tell me a little bit about
your sales process so you get onwith, you know, a business
owner.
Maybe they were referral, maybeit's from some prospecting you
did on your own.
What does that process looklike, from the initial
conversation to getting themsigned up as a client?
Speaker 3 (08:43):
so it's actually pretty, pretty straightforward,
right, generally they come to mewith they've had a problem, as
I mentioned earlier, that thebank they may have wanted an
extension line of credit gotturned down.
So initially, it's what's yourpain point?
What's keeping you up at night?
Uh, I'd like to have aone-on-one meeting with them.
Speaker 1 (09:00):
You know, so they get a chance to to feel you know,
am I somebody they want to workwith?
Speaker 3 (09:04):
right, because there's that interpersonal
relationship.
The problems are fairly I don'twant to say common, but common,
for lack of a better word whereyou know they're not getting
their financial statements ontime or they've had big
adjustments from their year endand they just don't know exactly
where they stand.
So I'll do a fairly high levelanalysis of their balance sheet
(09:24):
at that time an income statementand say, okay, well, this is
what I see, let me have a deeperdive.
And then I usually come back tothem with a plan right, saying
you know, you're, here's what Isaw, here's how we can fix it
and here's how long I think it'sgoing to take and what it's
going to cost you.
Speaker 1 (09:42):
And then you know, if they like that idea, we just I
have a fairly straightforwardcontract.
Speaker 3 (09:48):
You know it's.
It's pretty straightforward,it's it's not.
You don't need a lawyer toreview it, it's pretty
straightforward.
You're saying you know I'mgoing to here's my rate, you
know here's what I want to bepaid, here's what I'm going to
do for you.
And then we put I put togetherthat three-month plan where it
says I'm going to deliver thisin this month, in month one,
(10:12):
this in month two, this in monththree, and we just keep
updating it as we go along andthen I can work remotely.
I do a lot of work right here inSussex If I need to go and see
the client.
That's not a, so we just that'show it works.
It's really straightforward.
And you know, the nice thingwith a three-month rolling plan
is that you're always revisitingyour financial statement.
(10:32):
So I can do this for you, I cando that for you, and if there's
ever a pause, that's fine,right, we have some months where
I may do a lot of work, somemonths where I do a little and
(10:55):
where I do a little, and theirclients always pretty much in
control.
Yeah, cool.
What's your take on hourlyversus the retainer model?
Yeah, I do struggle with thatone.
I had a client recently.
I did a little project for themand they had a great business.
It was a lot of potential andthey were taking a very, very
modest salary right.
They were just taking sort ofwhat they needed to live.
It translated into probablyabout $45 an hour is what the
(11:21):
the owners to two owners werepaying themselves.
And it's really hard to go inand say, well, I'm charging $200
or $225 or when they're payingthemselves $40 or $45 an hour.
In that particular case, I saidthis is what you need and I'll
deliver it to you for this priceas opposed to getting into an
(11:45):
hourly rate as opposed togetting into an hourly rate.
Most clients are used toaccountants and lawyers charging
an hourly rate, so the ratedoesn't necessarily shock them.
But I think they always worryabout creep right, like, oh, how
long is it going to take you todo it and are you going to be
efficient?
So I'm trying to get a littlebit more to the.
(12:05):
I'm going to deliver you thisfor this price as opposed to an
hourly rate.
But it doesn't always work outthat way, because sometimes you
know there's just there's notthat project, it's more of an
ongoing thing.
So I tend to be prettytransparent as to how much
things are going to cost.
But I I am getting away fromtalking about that hourly rate
(12:28):
more and more, and also, too, itmakes me feel less like a
consultant and more as part ofthe company where they're just.
This is my monthly fee for gregyeah, that's a good point.
Speaker 2 (12:40):
There's, there's I mean there's two sides to every
coin.
Right, and you can you canslice it a ton of different ways
.
Speaker 3 (12:48):
Tell me about, um, maybe one of the biggest wins
that stand out for you with yourclients oh well, early on, uh,
one of my first clients here inthe maritimes had a very
successful business.
Uh, he started from his garageand, as a result, he had some
(13:08):
personal guarantees on his lineof credit and some, you know,
collateral.
And that was just stressing himamazon.
Speaker 2 (13:16):
Amazon was the garage , right.
Speaker 3 (13:17):
You're talking about jeff I wish, I wish that was my,
my client.
Yeah, uh, maybe he could be thenext one.
Um, so these personalguarantees were essentially
causing him a lot of stress and,oddly enough, one of the
bankers who I bumped into atlunch yesterday happened to be
his banker and we had aconversation.
(13:38):
You know, saying this doesn'tmake sense.
I mean, you have other businessassets that you can have a
clatter against and this isoutdated and it really didn't
take a lot of effort from me.
It was more just.
Here's some financialstatements.
Here's what I see.
I want to get these personalguarantees removed, and they did
, and the client slept better atnight.
(14:01):
It really didn't cost it.
It didn't take me very long todo it.
It was really part of myanalysis of this company and a
conversation with the bank.
So that was my first big winhere in the Maritimes, and then
there's been a lot of times youget little wins, you just help
somebody sleep better at night.
I've had a couple of the biggerwins where I've helped clients
(14:24):
buy businesses Up in Miramichiactually, where your cousin
Tiffany's from, helped a clientbuy some additional Tim Hortons
stores.
So there's been great wins, butthat little sounds little, but
removing those personalguarantees was just big for
everybody.
Speaker 2 (14:44):
That's cool.
I can't remember if it was aconversation we were having or
if I heard it somewhere else,but just, I mean, even
presenting being a fractionalCFO is like I'm just going to
help you sleep better at night,and that may sound crazy to you.
Know, the average businessowner, but if you know all of
(15:05):
your finances are in line, youknow business owner, but if you
know all of your finances are inline, you know what's happening
you're making all thesedata-driven decisions.
Speaker 3 (15:15):
That's a huge relief of stress, right, and I find
that a lot of business ownersthey're really good at doing
what they do right, whether it'sproducing that widget or
providing this type of service.
They're really good at that,and they may not necessarily be
good at understanding theirfinancial statements.
So if you can help themunderstand their financial
statements and project forwardor help mitigate some risk and
(15:38):
problems that they have, that'sjust another skill set that
they've just never learned right, so just as I can't build, the
perfect widget widget.
They don't necessarily producethe best finance or understand
their financial statement, so itreally just helps them like I
no longer have to worry aboutthat or you know, canada revenue
agency calls me, I can tellthem to talk to greg okay yeah,
(16:01):
I don't have to stress aboutthat greg, is it?
Speaker 2 (16:04):
is it too?
Is it too soon to talk aboutthe other project that we were
speaking about a couple weeksago with the no, it's actually
perfect timing awesome.
I would, uh, I would love forto hear a little bit more about
what we were speaking aboutbefore just just here on the the
podcast.
But I love the idea of howyou're partnering up with so
(16:26):
many other professionals in yourspace to be like a, a what
would you say?
Just like a whole suite offractional professionals,
essentially yes, yeah.
Speaker 3 (16:37):
So I started a group uh called flexible c-suite, and
so what it is is I'm afractional CFO, there's a
fractional COO, a fractionalmarketing person, it, hr,
logistics, and we all arefractional individuals working
together for a couple of things.
One, we can refer each otherbusiness, but also we could
(17:00):
offer a company a wholeexecutive suite on a fractional
basis.
And what is really kind of coolabout this is this actually
came together from a motorcycleride the fractional CO and I.
I helped him buy a motorcyclelast year, so we went out on a
(17:22):
motorcycle ride.
He says I'm thinking of goingfractional, can you give me some
tips and pointers?
And we had a good conversation.
Speaker 1 (17:29):
He goes well, I know.
Speaker 3 (17:30):
Andrea and.
Alex and on and on.
So we decided just to cometogether and say how can we help
each other grow our businesses?
So we formed a littlepartnership.
We're actually meeting in aboutan hour to just move it along.
Partnership we're actuallymeeting in about an hour to, you
know, just move it along.
But the whole idea is, you know, you can hire one of us or you
(17:51):
can hire all of us to be yourfractional C-suite.
Speaker 2 (17:55):
That's such a neat idea.
I'm very curious to check in,you know, in a couple months, in
a year, and just see how that'sprogressing.
It's such a strong offer.
Speaker 3 (18:05):
I'm very excited for for what's to come with that for
you guys I I'm very excitedabout as well, because we we
just came together very easilyand everything's been flowing
really well and, um, you know,we, we really just started, uh,
in december, early december,saying hey, let's do this, and
we've been on the same pageabout everything and now it's
(18:26):
just okay.
How do we we're looking reallynow at?
How do we let everybody know?
Speaker 1 (18:30):
how do?
Speaker 3 (18:30):
we market ourselves.
So you know it's um.
Our fractional marketingperson's probably going to take
the lead this afternoon on that.
Speaker 2 (18:39):
Yeah, I would hope so yes, um, you mentioned you have
a client in the US.
Primarily your clients are inCanada, or the complete opposite
, where we have a client inCanada and then the rest of our
clients in the US.
What are either somesimilarities or differences you
(19:00):
notice from Canadian and USbusinesses?
Speaker 3 (19:06):
Mostly, I would say it's on the tax side.
So accounting is accountingright.
Your debits and your credits,they're the same.
Um.
Us tax is not in my wheelhouse.
Um, this is probably the onlything I ever quit in my life.
I started studying us tax, andit was several years ago.
I was like, yeah, no, I'm notgonna do this.
So on the tax side of things,it's just, it's not in my
(19:28):
wheelhouse at all.
But business is business right,and there are, I see, no reason
why, outside of the tax, thatwe couldn't interchange right.
There may be some nuanceresponses, and I think one of
the other advantages too, though, is I have a great Canadian
(19:51):
network.
I don't necessarily have thatsame network in the US, so those
banking relationships in theUnited States I'd have to form
them right so and the banking isdifferent there's more banks in
the United States than thereare in Canada.
So forming those relationshipswould take maybe a little bit
more effort on my part.
But my client that I do have inthe us it's more about business
(20:11):
strategy and understanding hisfinancials.
And what can we do about it?
The tax piece doesn't reallycome in okay, that's interesting
.
Speaker 2 (20:21):
I was curious if you were, think, if you were, if you
notice, like any, even justlike personality differences or
the way you know the businessowners from the U?
S versus Canada run theirbusiness, what, what those
conversations or relationshipslook like.
I mean, we're, we're so similarto countries, but I was just
(20:42):
curious if anything stood out toyou.
Speaker 3 (20:44):
Sometimes I find that you know Americans are more
assertive, more aggressive, butnot necessarily so Right.
I think that you know americansare more assertive, more
aggressive, um, but notnecessarily so right.
I think that you know, from thecanadian side, they are equally
as aggressive, but maybequieter about it.
Or you know it tends to be notsomething that's you don't
necessarily notice it right away.
Where you tend to notice thatmore with american entrepreneurs
(21:05):
, it's they're out of the gate,they're, they're fairly okay,
let's, let's go, that's right.
Where canadians are?
They want to go?
But they slowly get out of thegate, then they then they go
right.
So it's uh, it's different inthat sense, but from a
fractional cfo standpoint, it'smore just managing the time yeah
(21:25):
, do you have much desire totake on more american clients,
or do you?
Speaker 2 (21:30):
do you just really enjoy working with canadian
clients, or just maybe it's eveneasier for you to acquire
canadian clients at this point?
Speaker 3 (21:39):
um, I would be happy to expand in the united states.
I just never really focusedthere because I I had lots of
opportunity here in canada andthings were coming in and with
that tax piece.
Sometimes that is a largerpiece for Americans so it's like
, okay, something comes my way,great.
But now that I have one.
US client and things are goingwell why not get another one or
(22:01):
another one?
And just knowing that you knowthat gap of tax or whatever is
there.
So I'd be happy to take onclients south of the border, and
the nice thing for the clientsin the US is I'd be happy to
take on clients south of theborder, and the nice thing for
the clients in the U?
S is I come at a discount right.
Cause I'm not my rates arequoted in Canadian dollars.
Speaker 2 (22:22):
So with the dollar the way it is, they save money.
Speaker 3 (22:27):
Yeah, a big what would it be close to 40%.
Now it's creeping, right, soit's not between you know they
could save easily, easily, 30%.
Yeah, so it's a it's creepy.
Yeah, it's creeping right.
Speaker 2 (22:33):
So it's, it's not, it's between.
You know they can save easilyeasily 30, yeah, so it's a nice
savings so last question for you, greg um, what's been one of
the most rewarding parts ofgoing out on your own and being
an entrepreneur?
Speaker 3 (22:49):
I, I'm finally in control of my schedule, right?
I don't?
You know, when I was workingfull time, I was working those
60, 70, sometimes 80 hour workweeks just burning out.
Now I set that plan with theclient.
I deliver.
I mean, I schedule downtime inmy calendar so I'm able to make
(23:12):
money, keep my clients happy andnot burn myself out.
And and because I'm not neededevery day, if I'm gone for a
week I'm not missed as much as Iwas when I was working full
time, right, I don't have tobecause they're I'm going to.
Maybe they're missing me oneday of that week as opposed to
five.
So, being in control of myschedule and being able to see
(23:36):
the success that my client andhelp them and see them become
successful and, at the same time, being able to work hard but
also have the ability to playhard that's that's been the most
rewarding for me.
Speaker 2 (23:49):
That's so cool.
Play hard.
That's been the most rewardingfor me.
That's so cool, Greg, thank youso much for coming on and
sharing all these stories andyour insight For anyone who
wants to get in touch with you.
What's the best way they canreach out to you?
Speaker 3 (24:01):
Well, I'm on LinkedIn .
Pretty easy to find on LinkedIn.
I check that every day.
And then my email is prettyeasy, it's just greg at
fifthridgeventurescom.
Speaker 2 (24:12):
Perfect.
All right, we'll put thoselinks in the show notes so that
people can get in touch andcontinue the conversation with
you.
Thanks again for coming on, andI look forward to seeing what
takes place with the flexibleC-suite that you and your team
have put together.
Speaker 3 (24:28):
Absolutely, we'll keep in touch.
Thanks for having me.
Thanks for having me.
Speaker 2 (24:31):
Thanks for tuning into this episode of CFO
Chronicles the secrets behindsuccess.
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(24:54):
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We've got more exciting topicscoming up, so stay tuned for the
(25:15):
next episode of CFO Chronicles.
Until then, keep pushingforward.
Your growth is just onestrategic move away.
Speaker 1 (25:21):
Thanks for listening to CFO Chronicles the secrets
behind success.
We hope today's episodeprovided valuable strategies to
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(25:45):
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Until next time, keep strivingfor success and unlocking your
business's potential.
Welcome to CFO Chronicles the secrets behind
success the go-to podcast forfractional CFOs and accounting
firm owners who want to attractmore high-paying clients and
increase their revenue.
Hosted by James Donovan fromNine Two Media, this podcast
dives into marketing strategiesspecifically designed for lead
(00:22):
generation and clientacquisition.
In each episode, you'll hearfrom industry leaders sharing
their success stories and Thankyou to your bottom line.
Speaker 2 (00:53):
Today I'm joined by Greg Powell, all the way from
Canada.
Greg, you're our first Canadianguest coming on Sussex, New
Brunswick, from Fifth RidgeVentures.
So happy to have you on theshow today.
We actually got introduced frommy cousin Tiffany probably a
month and a half ago.
Welcome to the show.
Speaker 3 (01:12):
Thank you for having me.
It's good to be here.
Speaker 2 (01:15):
Perfect.
So, greg, tell me what it'slike working with Canadian
businesses as a fractional CFO.
Everyone we've had on the show,everyone we work with primarily
is US based.
So I've heard a lot aboutdifferent strategies in the US
in regards to tax planning andjust running American businesses
(01:36):
and where that jumps in.
So what's it like north of theborder?
Tell us a little bit about that.
Speaker 3 (01:43):
Sure, well, I do actually have one US client, so
I've just started with him.
But my Canadian experience hasbeen quite rewarding, actually,
because I find that there's beena lack of that senior level
talent in accounting.
I don't know where it's allgone, but you know some of these
(02:03):
medium sized companies.
They really do need that CFOlevel help, just just not one
full time, and that's where thefractional piece comes in.
It's been working really well.
I found that here in AtlanticCanada it was a relatively new
concept.
I've lived out in New Brunswicknow for three and a half years
(02:26):
and a lot of people were justcoming out saying, oh, this is
what I need and it fits with mybusiness right, because the
population here is only so big,businesses get only so big, but
they still need that, that help,and it just hasn't been
available that's so interestingit's, I'm sure it's very similar
(02:47):
.
Speaker 2 (02:47):
You know, I'm going to say at home, being being in
New Brunswick as well, but it'sjust a case of I think a lot of
businesses don't know what theydon't know when it comes to what
a fractional CFO can evenprovide for a business.
Instead of thinking, okay, Ihave an accountant, I'm good,
this is just going to be anotherexpense for me, but the reality
(03:07):
is it's a massive investmentfor business bringing on a
fractional CFO and in how muchof an ROI you truly can get out
of, out of that higher well it.
Speaker 3 (03:18):
It doesn't have to be a massive investment, because
what I do is I try to figure outwhat the pain points are, right
.
So you have your bookkeeper,your day-to-day accountant in
your business keeping thingsrunning.
You have your year-endaccountant who will do your tax
return and your final financialstatements.
But that piece in the middlecauses some pain points.
(03:39):
So I try to figure out what theclient's pain points are and
how can we resolve them, andwhat I like to do is a
three-month rolling plan, right?
So I'll say, okay, well, youhave these issues, let's tackle
this, this and this in thistimeframe.
You know this is what you'regoing to get, this is how long
it's going to take me, this iswhat it's going to cost and the
client's sort of in control ofhow much they want to spend per
(04:02):
month and how quickly they wantto get some of these issues
resolved.
So, even though you know it's,it's not cheap to have the
fractional cfo, it doesn't haveto be a burden, right?
Speaker 1 (04:13):
you can.
Speaker 3 (04:13):
You can manage it.
Not every problem needs to besolved next week either right.
There's things that you canjust sort of work on over time
and scale up and down as theclient needs nice yeah, I think
I I got the wrong word in therelike massive investment, as in
it's.
Speaker 2 (04:30):
It's a huge beneficial investment to be
making, and massive in the senseof the impact it will have on
the business.
That that may have been taken alittle bit out of context as
far as like the monetary valuegoing in.
So tell me a little bit abouthow you're going out and finding
clients Like what's beenworking well for you to get new
(04:50):
blood coming through the door.
How you're getting on salescalls.
What does that process looklike?
Speaker 3 (04:56):
Well, most of my referrals have actually come
from the banks.
So usually a client will end upgoing to the bank needing an
extension of their line ofcredit, or they want to borrow
money for expansion, and thebank will be you know where's
your financial statements andyou know it'll be.
Their year-end statements werealready six months late and
they're now, you know, eight,nine months old.
(05:17):
So the bank's like okay, I needsomething.
You know more current and youknow realizing that there's that
gap.
You know more current and youknow realizing that there's that
gap, and so the bank's a littlebit of that willing, maybe, or
reluctant to work with somebodywithout current set of financial
statements.
That's where I've got a lot ofmy business from.
So they'll be like, okay, youneed somebody else.
And I'll happen to know, greg,he's a fractional cfo, this
(05:38):
could work.
And the introduction goes fromthere.
Um, I spend a lot of timenetworking, not only with the
banks but with other people inindustry, just letting them know
what it is that I do, because Ifind that that fractional CFO
piece is a relatively newconcept, especially here in
England, canada.
But just saying, oh, I can get aCFO and I don't have to have
(05:59):
him here every day and he's noton my payroll, but I integrate
within the company as well.
Right, so it feels like I'mtheir employee, but I'm, I'm a
contractor.
But the networking has been hasbeen just in-person meetings,
you know, whenever I have achance to attend an event.
Speaker 2 (06:16):
But, as I mentioned, the bulk of the referrals come
through banks or other financialinstitutions do you feel the
networking with banks would beas impactful living in a a
larger populated city liketoronto, like vancouver or some
of the bigger cities in the us,where there'd be a lot more
(06:38):
competition between banks andyou know fractional CFO and
professionals of your level?
Speaker 3 (06:47):
Good question, because I did start off as a
fractional CFO in Toronto and Imoved to Canada, you know,
shortly after that there'sdefinitely a lot more
competition.
Keeping that relationship is alittle bit harder in a large
city than it is in a smallercommunity.
Just yesterday I went out forlunch with a friend in Moncton
(07:08):
and I bumped into two bankersthat I deal with at lunch and
one of them happened to be withsomebody and asked me you know,
do you have a business card?
So you know the probability ofbumping into somebody that
you've networked in AtlanticCanada is higher than it is in
Toronto.
I mean, I lived in Toronto for33 years and you know I've never
(07:30):
bumped into people.
I knew just passed so manypeople on the street and
yesterday I went to lunch andbumped into two bankers.
So you know it does make it andthat and they get to know you a
little bit more, right it's,it's, the pace is a little
slower.
So the one banker I bumped intohappened to be from Sussex,
(07:51):
even though he's living inMoncton.
So we have that in common.
So the interpersonalrelationship develops
differently.
Speaker 2 (07:58):
Yeah, it's so funny just hearing that.
Being from Moncton and livingthere, that's just classic.
Going out in Moncton anywhereand running into someone you
know, whether you know they'refrom Miramichi or someone's
visiting from Halifax you justyou can't go outside without
running into someone you know,which is quite comical.
Tell me a little bit about, anddon't feel you have to give
(08:22):
away all of your secrets here,but tell me a little bit about
your sales process so you get onwith, you know, a business
owner.
Maybe they were referral, maybeit's from some prospecting you
did on your own.
What does that process looklike, from the initial
conversation to getting themsigned up as a client?
Speaker 3 (08:43):
so it's actually pretty, pretty straightforward,
right, generally they come to mewith they've had a problem, as
I mentioned earlier, that thebank they may have wanted an
extension line of credit gotturned down.
So initially, it's what's yourpain point?
What's keeping you up at night?
Uh, I'd like to have aone-on-one meeting with them.
Speaker 1 (09:00):
You know, so they get a chance to to feel you know,
am I somebody they want to workwith?
Speaker 3 (09:04):
right, because there's that interpersonal
relationship.
The problems are fairly I don'twant to say common, but common,
for lack of a better word whereyou know they're not getting
their financial statements ontime or they've had big
adjustments from their year endand they just don't know exactly
where they stand.
So I'll do a fairly high levelanalysis of their balance sheet
(09:24):
at that time an income statementand say, okay, well, this is
what I see, let me have a deeperdive.
And then I usually come back tothem with a plan right, saying
you know, you're, here's what Isaw, here's how we can fix it
and here's how long I think it'sgoing to take and what it's
going to cost you.
Speaker 1 (09:42):
And then you know, if they like that idea, we just I
have a fairly straightforwardcontract.
Speaker 3 (09:48):
You know it's.
It's pretty straightforward,it's it's not.
You don't need a lawyer toreview it, it's pretty
straightforward.
You're saying you know I'mgoing to here's my rate, you
know here's what I want to bepaid, here's what I'm going to
do for you.
And then we put I put togetherthat three-month plan where it
says I'm going to deliver thisin this month, in month one,
(10:12):
this in month two, this in monththree, and we just keep
updating it as we go along andthen I can work remotely.
I do a lot of work right here inSussex If I need to go and see
the client.
That's not a, so we just that'show it works.
It's really straightforward.
And you know, the nice thingwith a three-month rolling plan
is that you're always revisitingyour financial statement.
(10:32):
So I can do this for you, I cando that for you, and if there's
ever a pause, that's fine,right, we have some months where
I may do a lot of work, somemonths where I do a little and
(10:55):
where I do a little, and theirclients always pretty much in
control.
Yeah, cool.
What's your take on hourlyversus the retainer model?
Yeah, I do struggle with thatone.
I had a client recently.
I did a little project for themand they had a great business.
It was a lot of potential andthey were taking a very, very
modest salary right.
They were just taking sort ofwhat they needed to live.
It translated into probablyabout $45 an hour is what the
(11:21):
the owners to two owners werepaying themselves.
And it's really hard to go inand say, well, I'm charging $200
or $225 or when they're payingthemselves $40 or $45 an hour.
In that particular case, I saidthis is what you need and I'll
deliver it to you for this priceas opposed to getting into an
(11:45):
hourly rate as opposed togetting into an hourly rate.
Most clients are used toaccountants and lawyers charging
an hourly rate, so the ratedoesn't necessarily shock them.
But I think they always worryabout creep right, like, oh, how
long is it going to take you todo it and are you going to be
efficient?
So I'm trying to get a littlebit more to the.
(12:05):
I'm going to deliver you thisfor this price as opposed to an
hourly rate.
But it doesn't always work outthat way, because sometimes you
know there's just there's notthat project, it's more of an
ongoing thing.
So I tend to be prettytransparent as to how much
things are going to cost.
But I I am getting away fromtalking about that hourly rate
(12:28):
more and more, and also, too, itmakes me feel less like a
consultant and more as part ofthe company where they're just.
This is my monthly fee for gregyeah, that's a good point.
Speaker 2 (12:40):
There's, there's I mean there's two sides to every
coin.
Right, and you can you canslice it a ton of different ways
.
Speaker 3 (12:48):
Tell me about, um, maybe one of the biggest wins
that stand out for you with yourclients oh well, early on, uh,
one of my first clients here inthe maritimes had a very
successful business.
Uh, he started from his garageand, as a result, he had some
(13:08):
personal guarantees on his lineof credit and some, you know,
collateral.
And that was just stressing himamazon.
Speaker 2 (13:16):
Amazon was the garage , right.
Speaker 3 (13:17):
You're talking about jeff I wish, I wish that was my,
my client.
Yeah, uh, maybe he could be thenext one.
Um, so these personalguarantees were essentially
causing him a lot of stress and,oddly enough, one of the
bankers who I bumped into atlunch yesterday happened to be
his banker and we had aconversation.
(13:38):
You know, saying this doesn'tmake sense.
I mean, you have other businessassets that you can have a
clatter against and this isoutdated and it really didn't
take a lot of effort from me.
It was more just.
Here's some financialstatements.
Here's what I see.
I want to get these personalguarantees removed, and they did
, and the client slept better atnight.
(14:01):
It really didn't cost it.
It didn't take me very long todo it.
It was really part of myanalysis of this company and a
conversation with the bank.
So that was my first big winhere in the Maritimes, and then
there's been a lot of times youget little wins, you just help
somebody sleep better at night.
I've had a couple of the biggerwins where I've helped clients
(14:24):
buy businesses Up in Miramichiactually, where your cousin
Tiffany's from, helped a clientbuy some additional Tim Hortons
stores.
So there's been great wins, butthat little sounds little, but
removing those personalguarantees was just big for
everybody.
Speaker 2 (14:44):
That's cool.
I can't remember if it was aconversation we were having or
if I heard it somewhere else,but just, I mean, even
presenting being a fractionalCFO is like I'm just going to
help you sleep better at night,and that may sound crazy to you.
Know, the average businessowner, but if you know all of
(15:05):
your finances are in line, youknow business owner, but if you
know all of your finances are inline, you know what's happening
you're making all thesedata-driven decisions.
Speaker 3 (15:15):
That's a huge relief of stress, right, and I find
that a lot of business ownersthey're really good at doing
what they do right, whether it'sproducing that widget or
providing this type of service.
They're really good at that,and they may not necessarily be
good at understanding theirfinancial statements.
So if you can help themunderstand their financial
statements and project forwardor help mitigate some risk and
(15:38):
problems that they have, that'sjust another skill set that
they've just never learned right, so just as I can't build, the
perfect widget widget.
They don't necessarily producethe best finance or understand
their financial statement, so itreally just helps them like I
no longer have to worry aboutthat or you know, canada revenue
agency calls me, I can tellthem to talk to greg okay yeah,
(16:01):
I don't have to stress aboutthat greg, is it?
Speaker 2 (16:04):
is it too?
Is it too soon to talk aboutthe other project that we were
speaking about a couple weeksago with the no, it's actually
perfect timing awesome.
I would, uh, I would love forto hear a little bit more about
what we were speaking aboutbefore just just here on the the
podcast.
But I love the idea of howyou're partnering up with so
(16:26):
many other professionals in yourspace to be like a, a what
would you say?
Just like a whole suite offractional professionals,
essentially yes, yeah.
Speaker 3 (16:37):
So I started a group uh called flexible c-suite, and
so what it is is I'm afractional CFO, there's a
fractional COO, a fractionalmarketing person, it, hr,
logistics, and we all arefractional individuals working
together for a couple of things.
One, we can refer each otherbusiness, but also we could
(17:00):
offer a company a wholeexecutive suite on a fractional
basis.
And what is really kind of coolabout this is this actually
came together from a motorcycleride the fractional CO and I.
I helped him buy a motorcyclelast year, so we went out on a
(17:22):
motorcycle ride.
He says I'm thinking of goingfractional, can you give me some
tips and pointers?
And we had a good conversation.
Speaker 1 (17:29):
He goes well, I know.
Speaker 3 (17:30):
Andrea and.
Alex and on and on.
So we decided just to cometogether and say how can we help
each other grow our businesses?
So we formed a littlepartnership.
We're actually meeting in aboutan hour to just move it along.
Partnership we're actuallymeeting in about an hour to, you
know, just move it along.
But the whole idea is, you know, you can hire one of us or you
(17:51):
can hire all of us to be yourfractional C-suite.
Speaker 2 (17:55):
That's such a neat idea.
I'm very curious to check in,you know, in a couple months, in
a year, and just see how that'sprogressing.
It's such a strong offer.
Speaker 3 (18:05):
I'm very excited for for what's to come with that for
you guys I I'm very excitedabout as well, because we we
just came together very easilyand everything's been flowing
really well and, um, you know,we, we really just started, uh,
in december, early december,saying hey, let's do this, and
we've been on the same pageabout everything and now it's
(18:26):
just okay.
How do we we're looking reallynow at?
How do we let everybody know?
Speaker 1 (18:30):
how do?
Speaker 3 (18:30):
we market ourselves.
So you know it's um.
Our fractional marketingperson's probably going to take
the lead this afternoon on that.
Speaker 2 (18:39):
Yeah, I would hope so yes, um, you mentioned you have
a client in the US.
Primarily your clients are inCanada, or the complete opposite
, where we have a client inCanada and then the rest of our
clients in the US.
What are either somesimilarities or differences you
(19:00):
notice from Canadian and USbusinesses?
Speaker 3 (19:06):
Mostly, I would say it's on the tax side.
So accounting is accountingright.
Your debits and your credits,they're the same.
Um.
Us tax is not in my wheelhouse.
Um, this is probably the onlything I ever quit in my life.
I started studying us tax, andit was several years ago.
I was like, yeah, no, I'm notgonna do this.
So on the tax side of things,it's just, it's not in my
(19:28):
wheelhouse at all.
But business is business right,and there are, I see, no reason
why, outside of the tax, thatwe couldn't interchange right.
There may be some nuanceresponses, and I think one of
the other advantages too, though, is I have a great Canadian
(19:51):
network.
I don't necessarily have thatsame network in the US, so those
banking relationships in theUnited States I'd have to form
them right so and the banking isdifferent there's more banks in
the United States than thereare in Canada.
So forming those relationshipswould take maybe a little bit
more effort on my part.
But my client that I do have inthe us it's more about business
(20:11):
strategy and understanding hisfinancials.
And what can we do about it?
The tax piece doesn't reallycome in okay, that's interesting
.
Speaker 2 (20:21):
I was curious if you were, think, if you were, if you
notice, like any, even justlike personality differences or
the way you know the businessowners from the U?
S versus Canada run theirbusiness, what, what those
conversations or relationshipslook like.
I mean, we're, we're so similarto countries, but I was just
(20:42):
curious if anything stood out toyou.
Speaker 3 (20:44):
Sometimes I find that you know Americans are more
assertive, more aggressive, butnot necessarily so Right.
I think that you know americansare more assertive, more
aggressive, um, but notnecessarily so right.
I think that you know, from thecanadian side, they are equally
as aggressive, but maybequieter about it.
Or you know it tends to be notsomething that's you don't
necessarily notice it right away.
Where you tend to notice thatmore with american entrepreneurs
(21:05):
, it's they're out of the gate,they're, they're fairly okay,
let's, let's go, that's right.
Where canadians are?
They want to go?
But they slowly get out of thegate, then they then they go
right.
So it's uh, it's different inthat sense, but from a
fractional cfo standpoint, it'smore just managing the time yeah
(21:25):
, do you have much desire totake on more american clients,
or do you?
Speaker 2 (21:30):
do you just really enjoy working with canadian
clients, or just maybe it's eveneasier for you to acquire
canadian clients at this point?
Speaker 3 (21:39):
um, I would be happy to expand in the united states.
I just never really focusedthere because I I had lots of
opportunity here in canada andthings were coming in and with
that tax piece.
Sometimes that is a largerpiece for Americans so it's like
, okay, something comes my way,great.
But now that I have one.
US client and things are goingwell why not get another one or
(22:01):
another one?
And just knowing that you knowthat gap of tax or whatever is
there.
So I'd be happy to take onclients south of the border, and
the nice thing for the clientsin the US is I'd be happy to
take on clients south of theborder, and the nice thing for
the clients in the U?
S is I come at a discount right.
Cause I'm not my rates arequoted in Canadian dollars.
Speaker 2 (22:22):
So with the dollar the way it is, they save money.
Speaker 3 (22:27):
Yeah, a big what would it be close to 40%.
Now it's creeping, right, soit's not between you know they
could save easily, easily, 30%.
Yeah, so it's a it's creepy.
Yeah, it's creeping right.
Speaker 2 (22:33):
So it's, it's not, it's between.
You know they can save easilyeasily 30, yeah, so it's a nice
savings so last question for you, greg um, what's been one of
the most rewarding parts ofgoing out on your own and being
an entrepreneur?
Speaker 3 (22:49):
I, I'm finally in control of my schedule, right?
I don't?
You know, when I was workingfull time, I was working those
60, 70, sometimes 80 hour workweeks just burning out.
Now I set that plan with theclient.
I deliver.
I mean, I schedule downtime inmy calendar so I'm able to make
(23:12):
money, keep my clients happy andnot burn myself out.
And and because I'm not neededevery day, if I'm gone for a
week I'm not missed as much as Iwas when I was working full
time, right, I don't have tobecause they're I'm going to.
Maybe they're missing me oneday of that week as opposed to
five.
So, being in control of myschedule and being able to see
(23:36):
the success that my client andhelp them and see them become
successful and, at the same time, being able to work hard but
also have the ability to playhard that's that's been the most
rewarding for me.
Speaker 2 (23:49):
That's so cool.
Play hard.
That's been the most rewardingfor me.
That's so cool, Greg, thank youso much for coming on and
sharing all these stories andyour insight For anyone who
wants to get in touch with you.
What's the best way they canreach out to you?
Speaker 3 (24:01):
Well, I'm on LinkedIn .
Pretty easy to find on LinkedIn.
I check that every day.
And then my email is prettyeasy, it's just greg at
fifthridgeventurescom.
Speaker 2 (24:12):
Perfect.
All right, we'll put thoselinks in the show notes so that
people can get in touch andcontinue the conversation with
you.
Thanks again for coming on, andI look forward to seeing what
takes place with the flexibleC-suite that you and your team
have put together.
Speaker 3 (24:28):
Absolutely, we'll keep in touch.
Thanks for having me.
Thanks for having me.
Speaker 2 (24:31):
Thanks for tuning into this episode of CFO
Chronicles the secrets behindsuccess.
I hope you found value intoday's conversation.
As we wrap up, I'd love for youto do two things.
First, make sure to subscribeto this podcast so you don't
miss any future episodes.
If you enjoyed today'sdiscussion, please rate and
review the show.
It helps others discover theinsights we share here.
Second, if you're ready to takeyour business to the next level
(24:54):
and attract the high-endclients you deserve, head over
to accountingleadsnowcom orclick the link in the show notes
to book your strategy.
Call.
It's time to position yourselfas the advisor your clients need
.
And don't forget you canconnect with me on LinkedIn to
stay up to date on what'shappening in the world of
accounting and financial growth.
We've got more exciting topicscoming up, so stay tuned for the
(25:15):
next episode of CFO Chronicles.
Until then, keep pushingforward.
Your growth is just onestrategic move away.
Speaker 1 (25:21):
Thanks for listening to CFO Chronicles the secrets
behind success.
We hope today's episodeprovided valuable strategies to
help you attract morehigh-paying clients.
Be sure to subscribe, followand share with fellow
professionals.
Connect with us on LinkedIn andleave a review or comment to
join the conversation.
Your feedback helps us bringyou the best insights in finance
(25:45):
and marketing.
Until next time, keep strivingfor success and unlocking your
business's potential.
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