Episode Transcript
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samantha-eck_2_02-20-2025_120206:
Welcome to the Creative Minds Smart (00:01):
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Money Podcast, where we turn financialconfusion into creative confidence.
I'm Samantha Eck, bookkeeper andfractional CFO for creative entrepreneurs.
Each week I'm sharing myfinancial expertise and actionable
strategies to help you builda thriving creative business.
Plus, you'll hear from industry expertswho bring fresh perspectives on growing
(00:23):
your business beyond the numbers.
Because building a successfulcreative business starts with
strong financial foundations.
Your next chapter starts now.
You are listening to the Creative MindsSmart Money Podcast, and today we're
gonna talk about why CFO strategiesaren't just for big businesses, but
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for every type of business in between.
So I want to take a moment and start thisoff by saying, when I say CFO or even
a fractional CFO, what do you picture?
What comes to mind?
Because when I think of a CFO, I thinkof a man in a suit staring at charts in
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a glass conference room in the middleof a high-rise building in New York.
That's what comes to mind whenI think of something like that.
But what if I told you that CFOlevel strategy is exactly what you
need as a creative service providerscaling past DIY finances, you need.
Clarity and a financial strategythat will give you that clarity.
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So that's what we're gonna dive into totoday and I'm really excited to kind of
get into this 'cause that's a questionI get a lot and some, something that
a lot of people come to me and say,okay, well I understand that you say
that you're a fractional CFO Samantha,but what, what does that even mean?
Like what is a CFO?
So here is what A CFO actually does.
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Here is what A CFO actually does.
So the first thing they are is astrategic partner in decision making.
And you might might be like, okay,Samantha, that's a lot of big words.
Like what does that even mean?
So by saying strategic partner in decisionmaking, that means similar to like a
consultant or a coach, a fractional CFOis going to give you data backed decision.
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Support, if that makes sense.
So they're a strategic partner whogives you data backed decision support.
They're going to help youunderstand why the decision
you're making is okay or not okay.
Either way, it.
Kind of works out in your favor becausethey're there to really help make sure
that you feel confident in that decision.
The other thing that they actually dois forecast cash flow and expenses.
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So forecasting is somethingthat is very powerful.
We're gonna talk aboutthat in a coming episode.
But I wanna just kind of likeget onto the surface level of it.
So forecasting helps you topredict the future instead
of just relying on the past.
This is something that we've talkedabout a couple times now where we
don't wanna rely on the past data.
Yes, past data is important.
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You learn from past data, but ifyou wanna start planning for the
future, you need to forecast.
You need to understandwhat's coming in the future.
The other thing they do isinterpret financial trends.
And you might be like, okay,well what does that even mean?
So that specifically means that if you'rehaving ups and downs and ups and downs,
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and I look at that on a year over yearbasis, I'm gonna be able to utilize that
and say, okay, you know, Elizabeth, wehave short periods or we have downfalls.
At this period in the year, so fromJune to July, we have lower income.
We know that we need tostart planning ahead.
We know that, that this is a slowperiod, or if we notice that your money
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goes up in July and August, we say,okay, the end of summer is our most
profitable months, so we need to makesure that we plan ahead for the end of
summer to make sure that we're gettingeverything that we can out of it.
They also advise on pricing.
Offer efficiency, team costsand timing of big investments.
So what does that mean?
That means that when we're lookingat that data and we're utilizing that
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data, we're gonna be able to tellyou, okay, you know, your pricing
just isn't where it needs to be at.
If you wanna hit your target of,
having a 25% net income at the endof the month, then your pricing
needs to go up 'cause your expensesare super lean or whatever that is.
You know, just making sure thatthat all looks good, as well as
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analyzing team costs to make surethat the team costs are where they.
Need to be at if you can hire a newteam member if you can't afford your
team members, things like that, aswell as the timing of big investments.
So if you're looking at a $5,000course, A CFO is gonna be able to
tell you if you can actually affordthat or if you can utilize that.
And that's gonna be so,so, so, so, so vital.
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They're also going to helpyou to create a system that
supports you as a business owner.
Now, obviously you still need that brainbehind it, but they're gonna help your
backend just look really smooth so that.
When you are working on your financialsystems, there's just a lot of data there
that they are able to assist you with.
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So now you might be thinking, okay,great, that sounds like it's a lot
of stuff that I don't need rightnow, but I wanna talk about why this
matters before you go big, beforeyou're someone who has a lot going on.
And of course a lot of, a couple ofthe things I already mentioned should
have been like green flags to you.
Like, whoa, like Samantha,I need that in my life.
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One of them is underpricingbecause there's so many people
that underprice themselves.
So by looking at profitability, by lookingat forecasting, by everything like that,
it helps you to stop underpricing yourselfand start being able to price yourself
in a fair way that you can actuallysupport yourself and your business.
It helps you to prep for slow seasons.
Like I said, if I notice that there'sa trend where you're consistently down
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in July and August, I'm gonna tellyou that I'm gonna say, Hey, like.
We have a slow season coming up,so we need to dial back any large
expenses and go bare minimum.
We wanna make sure that we atleast break even next month.
So anything that is not essential hasgotta go, or we need to make sure that
we push extra hard to bringing in thatextra money so we don't have a dip.
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We also help you to avoid over hiring.
So if you're like, can weafford to hire this employee?
If we're looking at that and we're saying,you know, the impact of that over the
next six months is good, but then in theseventh month you're gonna hit a wall
and you're gonna go into the negative.
That's gonna help you to know, okay, maybeI can't afford this person right now.
I need to bring in another client,or I need to cut back elsewhere.
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It just gives you thatflexibility to like really.
Get to where you need in your business.
And then of course it helps youto scale what's actually working.
So it matters because if you don'tknow what's working, like how are
you gonna grow your business it.
So you really need to understandwhat's actually working.
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Now, it might make sense to youto be like, okay, well I need to
wait till I'm making five, six.
Seven figures to even get this help.
But if you're waiting until then,it's like waiting to hire a mechanic
until after your car breaks down.
So you know, you see all the warningsigns, you see the light come on, the
check engine light come on, your carbreaks down on the side of the road,
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which managed to get it running again, andyou don't actually contact that mechanic
until your car is completely broken.
It's very similar to these CFO things.
If you are underpricingyourself, if you are.
Hurting yourself on slow seasons.
If you're hiring people without actuallyhaving the data back decisions, that's
really when it's going to hurt you.
You.
Needing strategic support doesn'tmean that you are bad with money
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or that you can't handle things.
It just means you're doingthings you've never done before.
And of course you're gonna needhelp with that because again, like
I've talked about before, you arein your zone of genius with whatever
you're doing in your business.
And my zone of genius is helpingyou figure this kind of stuff out.
What do CFO services look likefor solo printers or small teams?
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So first of all, a fractional CFO couldinclude monthly cashflow forecast, like
I said, with monthly cashflow forecast.
We're trying to make sure that youstill have money in your bank at
the end of the month, but also thatyou don't overreach based on how
much you wanna keep in the bank.
So if we've already built that three monthbuffer that we've talked about before.
We wanna make sure that we keepthat in the bank and we wanna make
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sure that we're not overextending,we give you financial analysis
delivered in absolute plain English.
So this is something I used to do a lotfor a lot of my clients, and I didn't even
realize that this was kind of fractional.
CFO slash advisory is just giving myclients this really detailed analysis and
advice and breakdown into their businessin a way that makes sense to them because
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I want them to be able to succeed.
So.
You can see how impactfuland like powerful that type
of financial analysis is.
Then we also have KPI dashboards andyou might be like, okay, Samantha,
well, I can see KPI dashboards inQuickBooks or Xero, or whatever it is.
But I wanna mention that KPIs are notjust numbers based on your financials.
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We can also be looking at KPIs as thenumber of clients that you've held for.
A certain amount of months, we can belooking at a whole bunch of different
things, and it really depends on yourindustry because KPIs per industry will
really just show you different things.
And then of course weoffer profitability audits.
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So showing you what offersare most profitable.
So if you have a thousand dollars socialmedia retainer and you know you have
$300 in software costs for that socialmedia retainer, and then you also have
a contractor that works specificallywith that social media retainer.
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And you're only making, okay,let's say at the end of the day
you only make $200, that's 20%.
Is that something that you'resatisfied with or are you looking
for more profitability on that offer?
So we're really just trying to get downto the nitty gritty and understand like.
How we can utilize this data.
And then of course we have strategicplanning for launches, pricing, team
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growth, just making sure that everythingthat you're doing in your business
that requires some sort of financialtie in is backed by data because we
don't want you to have to do that.
Now, of course, there's alittle bit of a plugin, my.
Pinnacle Pie packages is the higherpa, highest package that I offer
offers that deep financial analysis,if that's something you're looking for.
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However, if you are just lookingfor a cashflow forecast or KPIs,
or you just want a profitabilityaudit or something like that.
I offer all of these services separately.
They're called a la carte services.
This is something that Ican do for you separately.
Now, I can't guarantee the accuracyof these reports if I don't do your
bookkeeping myself, but I want to beable to give you a cashflow forecast.
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I want to be able to do all of thesethings with you so that you can have
these CFO tools at any size of business.
Okay, so we've talked about what A CFOis, what they can do for you, all types
of things, but I wanna explain to youhow it can feel when you have someone
in your corner who understands thesenumbers on a deeper level than just
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looking at them and saying, Hey, like.
You made money last month.
First of all, you're gonnasleep a little better.
And I know that sounds likeweird to say it like how do you
know I'm gonna sleep better?
Because you're gonna knowwhat's coming next month.
So if you have a retainer and you have,you know, six clients and we know that
you have $10,000 coming in next month.
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We know that you're gonna have that.
We're gonna look at your fixedexpenses, everything like that.
We're gonna understand what's coming in.
Again, I don't wanna get into that.
We're gonna talk about thatin an episode really soon.
You're gonna stop secondguessing every money decision.
So similar to when you have goodbookkeeping with a CFO in your corner.
You're really not gonna second guess thatdamn thing because you're just gonna know
exactly what's going on in your business.
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You're gonna feel.
Like a leader, not justa freelancer anymore.
So this is that step where you'retaking it from freelance copywriter,
freelance social media manager,whatever it is, a freelancer into that
leadership role to become that CEO.
And I wanna make this clear.
This is not just for teams,it's not for anybody.
You can be a solopreneur andutilize these services and
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witness the power of them just.
Because you're solo, it doesn'tmean you have to have a team.
You don't have to have a teamto witness the power of A CFO.
And of course, like even if you're notplanning on hiring or something like that,
you could still benefit from a cashflowforecast, from a profitability audit.
And if you're hiring like contractors,like a website designer or someone who's
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helping you with your funnels or marketingsomeone who's gonna be consistent, that's
something that you want to have predictedso that you know what's gonna happen.
And then of course you stopwondering if you're doing it right
and move forward with confidence.
You want to be confident in yourbusiness, and that's all I ever want
for you is for you to walk away andfeel that confidence and like you're
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ready to just go ahead and run yourbusiness like the true CEO you are.
So, CFO strategy isn't about spreadsheets.
We're not looking at spreadsheets here.
We wanna look at.
Scaling with intention and looking at ournumbers and planning ahead for the future.
So if this is something you'reinterested, of course, feel free to book
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a discovery call with me and we can chatabout what kind of CFO services would
look like for you and your business.
Okay.
If you enjoyed this episode, pleaselike it, comment, share it with
someone you know, will love it.
And of course, get on socialmedia and share the podcast.
Let people know that we're hereso they can find out more of us.
If you have ideas for our topics forfuture episodes, leave a suggestion
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using the form in the comment box below.
As always, and like I've been sayingthe past couple episodes, we will not be
having any more guests as of next year.
So.
Whatever you guys wanna hearme talk about, let me know.
'cause I, I, I am realizing now that youguys really enjoy hearing from me and
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hearing about these fractional CFO andbookkeeper strategies and things like that
so that you guys can grow your businesses.
And I wanna know what you wanna hear fromme so that you can continue to do so.
As always, I wish you the best weekever and we'll see you next week.
Farewell fellow travelers.