Skip to main content

In this episode of the Scale Your Small Business podcast, host Jillian Flodstrom introduces Adam Rundle, the CEO of Clever Profits, a company that offers fractional CFO services to businesses of all sizes. The discussion focuses on the benefits of these services for small businesses and how they can drive growth and profitability.

Adam emphasizes the importance of understanding the financial aspect of running a business. While it’s essential to have a bigger vision and make an impact, profitability is crucial for sustainability. Without a clear understanding of whether a business is profitable and why, it won’t last long. Adam compares it to playing a basketball game without knowing how to score points. To ensure viability, sustainability, and long-term success, Clever Profits helps clients understand their finances and make informed decisions.

Adam highlights that business owners can start working with Clever Profits at any stage, not just when starting a business. Their services help develop financial models, projections, and evaluate the effectiveness of business activities. They emphasize the need for a financial system to organize and sort data, enabling objective evaluation of business performance. By using the same platform and format for both measurement and forecasting, clients can make better-informed decisions and improve their business outcomes.

Jillian and Adam discuss the importance of utilizing existing systems to their fullest potential rather than adding more tools. They mention the power of accounting software like QuickBooks or Xero, which can be leveraged effectively for financial management. Instead of viewing it as a burden, small business owners can optimize these tools to gain valuable insights.

Budgeting and forecasting are crucial aspects of financial management for small businesses. Adam suggests shifting the perspective from “budgets” to “forecasts and projections.” They introduce the concept of the Perfect P&L, a framework that helps construct an ideal profit and loss statement. By aligning the business owner’s goals, aspirations, and historical data with this framework, Clever Profits can create realistic projections and identify the gaps. Through ongoing analysis and measurement, they work with clients to close those gaps and continually improve business performance.

Jillian acknowledges that small business owners often struggle to find time to focus on financial management amidst their daily responsibilities. Clever Profits aims to help remove the noise and guide service-based businesses through specific financial challenges. While the discussion primarily focuses on service-based businesses, the principles discussed apply to other business types as well.

Overall, this episode emphasizes the importance of understanding and managing the financial aspect of a small business. Clever Profits provides fractional CFO services to help small business owners achieve profitability, make informed decisions, and drive growth. By utilizing existing systems effectively, implementing forecasting and measurement processes, and working towards closing performance gaps, small business owners can increase their chances of long-term success.

Show Notes