933: CFO Minded Beyond the Numbers: Discovering the Importance of Purpose-Driven Growth with Josh Greenbaum

Are you solely focused on growing your revenue without considering the deeper purpose behind it? In this episode, our guest Josh Greenbaum challenges this conventional wisdom and urges us to examine why we are striving for growth in the first place. Join us as we question the meaning behind those numbers on your balance sheet and discover the importance of purpose-driven growth.

Josh Greenbaum is an advisory CFO, author, and the founder of CFO Minded, a website dedicated to educating business owners on taking financial control. He is the author of the book "Numbers Scare Me and Other Excuses: A Business Owner's Guide to Lead Like a CFO." Today, Josh talks about the importance of understanding your business numbers, the role of a CFO (both full-time and fractional), and common mistakes business owners make when it comes to their finances.

Quotes

"Without a CFO, if you're just getting a basic bookkeeper who is merely helping drive a budget and next year is going to be the same as last year, you're not really addressing the goals of the business and the business owner." - Josh Greenbaum

“Having your numbers nice and tidy does a couple of things for you. Most importantly, it helps you negotiate. It allows you to walk into those conversations knowing exactly where your revenue and expenses are.” - Josh Greenbaum

“Be mindful that for you to take what you want out of the business, you need to have a healthy top line and bottom line. It's more than just about you.” - Josh Greenbaum

Takeaways

02:45 Knowing your business numbers, including conversion rates and advertising spend, is crucial for making informed decisions and achieving your goals as an entrepreneur.

05:30 Hiring a CFO, even in a fractional capacity, can provide valuable strategic insights and expertise that go beyond basic bookkeeping and compliance.

08:35 Addressing the mindset of "I'm not big enough for a CFO" is one of the biggest mistakes business owners can make, as even a one-time consultation can provide immense value.

10:56 Having clear, well-organized financial records and understanding your true profit margins is essential when negotiating a business sale or exit.

17:24 The common mistake of pricing your services or products based solely on your desired income, without factoring in business expenses and a healthy profit margin, can lead to financial instability.

Resources

Podcast: Play in new window | Download (Duration: 19:32 — 27.1MB) | Embed

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Filed in: Archive 4: 2020-2023 • Interview • Podcast

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