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Andrea Jenson: How to Invest in Your Own Business.

business cfo finances Nov 29, 2020

Andrea Jenson is the Founder of The Cash Flow CFO - the entrepreneur’s solution to confidently running their business based on facts, not emotions, providing virtual CFO services, bookkeeping & tax support to small business owners.

Andrea has had an affinity for numbers from an early age, and prior to opening her firm ran the accounting departments for some of the largest companies in the world.

Today Andrea’s goal is simple: to empower business owners to confidently OWN their finances and their future.

Andrea and her team help their clients implement financial systems and processes that allow for empowered decision making, to help entrepreneurs scale their business to the next level. Their modern, boutique approach provides well thought-out, practical financial solutions, designed to help entrepreneurs run & scale their business faster & easier.

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.

https://thecashflowcfo.com/cashnow-molly

Show notes:

1:13 How Andrea got started being the Cash Flow CFO by finding an underserved niche and focusing on it.

3:56 How do you know when it is time to get a CFO? Andrea lays out her criteria for when businesses, usually around the million dollar mark, start showing signs of needing a CFO

5:03 What are some of the steps business owners should do to own their finances?

First Andrea lays out some of the roles you will have in your financial area of your business.  The first is the book keeper and your tax preparer.  The book keeper tells you what happened and the tax preparer tells you what you need to pay.  The CFO helps you plan out and gives you an anchor for where you can go and where to put your money to create the most opportunity in your business.

8:00 How does Andrea get her clients?  CFO's require a ton of trust!

Andrea's approach is first serving her existing clients in the best way possible to generate referrals.  Second she focuses on educating people about their finances, as most online businesses have been traditionally ignored by financial educators.

10:09: Andrea's top tips for your business finances.  The first tip is to take the time to "find lost cash".  Print out your expenses for the past 90 days and go through it with some highlighters.  Highlight the things you need in green.  The things you are unsure about in yellow, and the things you don't need at all in red.  Then get rid of as many of the red and yellow items as possible.  Most businesses can save a lot of money by doing this!

Her second tip is to build a basic budget every month based off of last month's sales.  She recommends building four buckets.  

  • Delivering your product.  This should be 40-50% of your expenses
  • Marketing 10%
  • General/admin expenses 20-30%
  • Profit - Everything else.

Then at the end of the month you can decide if you want to keep the profit, or put it back into the business for growth opportunities. 

Her last tip is to hire a bookkeeper.  It will save you money and time.

22:04 What is Andrea's "One Thing" that will make the most impact for most business owners?  It is understanding the different roles financial people have and using them for those roles.  Your bookkeeper can't advise you on taxes, and your tax preparer can't be your CFO.

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