For those of you that have no idea what I do, this is it lol:
I’m a fractional CFO and I work with clients in the $1m-$50m million in annual revenue.
Here’s what I offer clients:
The
#1
reason why businesses fail is poor cash flow management (actual statistic).
“Bank balance accounting” is not going to cut it.
Here’s the 13 step guide of how you SHOULD manage your cash flow: (save this)👇
Buying businesses is the opportunity of a lifetime.
And Twitter is a goldmine for business buyers.
Here are 17 people who share valuable M&A info in the SMB space:
Buying businesses is the opportunity of a lifetime.
And the Twitter SMB community is a goldmine of expert knowledge.
Here are 7 incredible threads to get you started (from deal ideas, to diligence and step-by-step playbooks):
The most predictable way to build a net worth of $10M+:
Roll-ups.
Institutional investors try to keep this technique a secret.
So let me explain what they are (and how they work):
A roll up is when you buy two or more of the same type of business then “roll them up” into one
If you want to buy a business, Twitter is a goldmine of expert knowledge.
But most people don’t know where to look.
Here’re 20 accounts sharing incredible ideas in the SMB M&A space (for free):
After managing $300m in cash flows for over 45 clients, I’ve realized most small businesses make the SAME mistakes.
Here’re the top 5 business “killers” you need to avoid at all costs:
(A Small Business Finance 101 Thread)
I oversee $60+ million in annual revenue as a fractional CFO.
Whenever I take on a new client, there's almost always "low-hanging fruit" (to increase revenue & profit).
These are some of the most common: (mini 🧵)
In the next 5 years, over 50% of boomer businesses will SHUT DOWN instead of selling...
This creates a massive opportunity… if you’re ready to act on it.
Here're 7 ways you can get wealthy using this "problem":
(I'm doing
#4
)
The most predictable way to get wealthy is to marry rich.
The second most predictable way might be with roll-ups.
Here’s what they are (great for net worth goals of $10m+):
Business owners who don't understand basic accounting have a MAJOR disadvantage.
But thankfully, you don't need to know it all to avoid ruin.
Here're 5 accounting KPIs you need to know to get started:
I manage $500m in revenue as a Fractional CFO.
Whenever I take on a new client, they’re almost always making the SAME “big mistakes”.
Here’re the top 3 you need to avoid at all costs:
(A Small Business Finance 101 Thread)
The business finance order of operations:
1. Bookkeeper
2. CPA
3. Fractional CFO
4. FT controller
5. FT CFO
Here’s why I chose this order and how much each role should cost:
What industries can you roll up?
More than you can list in one tweet. But here’s some I’ve heard of:
• Dentist offices
• FBA
• Shopify stores
• Content sites
• Micro-SaaS sites
• Home-services companies
• Foundries
• Car washes
What are we reading today?
Picked this one out after listening to the
@lexfridman
podcast with
@BillAckman
50 pages in - really detailed but very helpful. Teaches you as you go.
The longer I work in finance, the more I realize…
Excel capabilities don’t matter.
Accounting rules don’t matter.
Even the financials don’t matter.
The only thing that truly matters is understanding what information people need.
And giving it to them in a clear and useful
The
#1
business killer:
Poor cash flow management.
82% of failed small businesses fail due to cash flow problems.
If you want your business to survive, avoid these 10 common mistakes:
One thing I've learned from managing the financials from 45+ companies...
You’re only as good as what you track.
Here are 7 cash KPIs every business owners needs to know:
I oversee $250+ million in cash flows as a Fractional CFO.
With every new client I take, there’s always “low hanging fruit” (to easily increase revenue and profit).
These 7 are the most common ones:
A surprising fact is that many business owners don't understand their numbers.
The best way to learn is with a few books.
But I've also curated some of the best finance threads.
Here's 7 finance threads to help you master the basics:
My CFO-services agency does mid 6 figures.
I’m the only employee.
And I choose when and how much I work (usually 20-30 hours per week).
Here’s a detailed guide on how I made that happen: (1/x)
Buying great businesses is the most predictable way to get wealthy.
But if you don't understand how to run due diligence, it can lead to disaster.
Here's my 5 question checklist to get you started:
What the heck do I actually do? 😂
I run a business called Scalable CFO. I work with 10-15 clients as a high-touch Fractional CFO that is a dedicated long-term partner.
🧵 Here is why, what and how:
⬇️
The most predictable way to kill your business is poor cash flow management.
If you want to avoid that fate, start tracking these 7 cash KPIs today (learned from helping 45+ SMB clients):
Revenue a company *should* be doing when they hire each financial role:
Bookkeeper: $0-$100k
CPA: $0-$100k
Fractional CFO: $1m-$2m
Controller: $2m-$10m
FT CFO: $10m-$50m
Here's the full break down: 🧵
Gross margin is CRITICAL for your business.
Increasing it is not easy.
But it's possible.
And a tiny change in gross margin will have a huge impact across your business.
Try these 8 strategies to increase gross margins:
I majored in finance.
But if I went back, I'd major in accounting.
If there's any college students who follow me and want to become a fractional CFO, that's what I'd recommend doing.
You have to understand how companies work before adjusting their direction.
I started Scalable CFO 2 years ago.
We now have 5 team members and over 25 clients.
And I'm thrilled to say that we’re expanding into two new service categories 🎉
I’ll be partnering with
@scalablerev
to make it happen.
Here’s the 2 categories & what they’ll look like: 🧵
Unpopular opinion:
The “Silver Tsunami” is a LIE…
Over 50% boomer businesses will shut down instead of sell.
But in this thread, I'll share 10 ways you can STILL capitalize on this problem:
It’s shocking how many business owners don’t understand their numbers…
The smartest way to learn?
From other expert’s experiences.
Here’re 7 incredible finance threads that’ll get you started on accounting, fin. statements, EBITDA, and more:
Multiple Increase
The bigger the revenue/profit, the better the multiple.
Ex. you can buy one company at a 3x EBITDA multiple but if you buy 5 companies of the same size, you’d have to pay 5x+ EBITDA.
Why? Institutions can play with bigger companies. And they're less risky.
My goal in life is to be this kind of CFO. There is something about this, that makes me intensely happy. I bet this guy can’t use excel but is a wizard in the boardroom.
(Not my pic unfortunately)
I manage $50m+ of cash flow across a dozen industries.
Every company I work with benefits from a few simple actions.
6 needle-moving actions to apply to your business:
How much finance roles cost:
• Bookkeeper: $200-$2k/mo
• CPA: $1k-$5k/yr
• Fractional CFO: $3k-$8k/mo
• FT Controller: $8k-$15k/mo
• FT CFO: $15k-$30k+/mo
Exceptions exist, but those represent the standard prices I’ve seen.
If you read & learn from 3-5 financial books, you'll be in the top 10% of business owners (which is good enough for 99% of businesses).
Here's my top 3 books:
1. Financial Intelligence
2. Measure What Matters
3. Simple Numbers, Straight Talk, Big Profits
82% of small businesses fail due to cash flow problems.
It’s the
#1
small business killer.
If you want your business to survive, make sure to avoid these 7 common cash flow mistakes:
(A Small Business Finance 101 Thread)
Why are rollups a reliable path to wealth?
If you are a good operator this is likely the most reliable way to get meaningfully wealthy.
You’re not inventing new technology.
You’re arbitraging multiples and operating companies better than other people do. That’s it.
Most $1m-$50m businesses can boost revenues and profits with some simple tweaks
I've talked about a lot of the "low-hanging fruits"
Here's 7 quick ones I wish more businesses would focus on:
33% of CEOs don't trust their CFOs to be able to do their jobs (recent KPMG survey).
I don't want you to be one of them.
So if you're new or struggling to find what to focus on...
Steal these 6 areas I focus on for the first 120 days with my new clients:
1) Invest Time To
Someone recently asked me:
"What're your top 3 books for biz owners looking to learn finance?"
I'll do you one better - here are my top 5 books (that’ll put you in the top 10% of biz owners on finance knowledge):
I bought my first business 18 months ago.
Buying a business is an opportunity to build generational wealth.
And Twitter is the best place to learn how.
Here are 21 accounts to learn from:
As a Fractional CFO, I’ve helped 45+ SMBs clean up their finances.
Most of them made this ONE obvious, but massive mistake…
Here’s what it is and how to avoid it (with my ‘Orders of Operation’ framework):
Revenue a company *should* be doing when they hire each financial role:
Bookkeeper: $0-$100k
CPA: $0-$100k
Fractional CFO: $1m-$2m
Controller: $2m-$5m
FT CFO: $10m-$50m
Lots of caveats, but this can serve as a guide.
Let me know if you want a full break down (why, etc.)
Using the previous example, for every $1 you add in EBITDA with a normal company you'd add $3 in enterprise value.
But with a rollup for every $1 you add, you're adding $5+ in enterprise value.
It's a double whammy.
How much finance roles cost:
• Bookkeeper: $1k-$2k/mo
• CPA: $1k-$5k/yr
• Fractional CFO: $3k-$8k/mo
• FT Controller: $8k-$15k/mo
• FT CFO: $15k-$30k+/mo
Exceptions exist, but those represent the standard prices I’ve seen.
In the next 3-7 years many businesses will trade hands as boomers retire.
Now's a great time to save capital, make investments, and learn how to buy a business.
Quick primer for people that want to get involved with acquisitions: (mini 🧵)
My top priorities as CFO when I start working with a new client:
1. Drive cost savings
2. Improve financial processes
3. Understand the business deeply
4. Optimize cash flow management
5. Develop a strategic financial plan
6. Communicate financial insights effectively
In 18 months, I’ve gone from managing $50M in revenue to $500M in revenue.
My one-person business is now a 9-person team.
Here’s how it all started for me:
I interned with an investment firm during my sophomore year of college.
During Christmas break the following year, I
If you want to accelerate your growth, here's my SMB finance "order of operations":
1. Bookkeeper
2. CPA
3. Fractional CFO
4. FT controller
5. FT CFO
Here’s why you NEED to hire in this order and how much each role costs:
Hire a Bookkeeper first.
Because you can’t do anything
As a Fractional CFO I get to see what works across industries.
After working with dozens of clients across 10+ industries (managing $200M+ in cash flows), here are 5 actions that can transform your business:
Why boomer businesses will shut down instead of selling:
• There’re no true “operations”
• Sales purely through owner relations
• They don’t know they can sell their biz
• No expertise other than grinding it out
But it doesn't mean you can't capitalize on this "problem".
🎉 Major life update 🎉
@StephenOlmon
and I have closed on our first company!
It’s been 2 years coming and we finally got it done.
Here’s what the company is and how the deal went down: 🧵👇
Buying businesses is the opportunity of a lifetime.
But it can be a disaster if you buy the wrong one.
Here’s my simple 5-step checklist to minimize buyer’s risk (before paying $$$ for consultants):
Operational Efficiencies
The traditional holdco model is buying good businesses. It’s industry agnostic.
Many people have done it well (Buffett as the prime example).
But if you only buy & operate one type of business, you’re going to dial in the operations.
My top 5 books to learn finances:
1. Financial Intelligence by Karen Berman and Joe Knight
2. Accounting Made Simple by Mike Piper
3. Simple Numbers, Straight Talk, Big Profits! by Greg Crabtree
4. Profit First by Mike Michalowicz
5. Measure What Matters by Katie Delahaye Paine
My top 5 finance book recommendations for business owners:
- Profit First
- Financial Intelligence
- Measure What Matters
- Accounting Made Simple
- Simple Numbers, Straight Talk, Big Profits!
Read these to get in the top 10% of owners with finance knowledge.
The
#1
reason why businesses fail is poor cash flow management...
“Bank balance accounting” is NOT going to cut it.
Instead, here's the 13-step guide of how I manage my client's cash flows:
(bookmark this one)
By 2030, billions of dollars will be made in the upcoming M&A wave.
If you want to take advantage, you MUST be able to evaluate deals.
Here’re 5 simple questions to ask the seller to learn if their business is the real deal:
🚨 Major Business Update 🚨
After endless requests, Scalable CFO now offers bookkeeping services!
@joshkiefercpa
and I have been cleaning books for 6 months in private. Now we're opening our shop to the public.
Here's what we do differently (and who this is for):
Small business owners, which is better:
Net Income or Free Cash Flows (FCF)?
If you're not sure, don't worry - you're not alone...
Most owners don't know the answer to this simple question.
So let me break it down for you (and what each metric is good for):
Accounting + finance both play crucial roles.
I work in strategic finance but good accounting has to be in place first.
Can’t tell you how many times I start to work with a company but can’t do much until they get bookkeeping in order.
As a CFO overseeing roughly $45m of annual revenue among clients one thing that is almost never discussed is PRICING.
I work with all of my clients on pricing because it is massively underutilized.
Here is how: (mini-🧵)
I’m super bullish on fractional executives.
3 reasons why:
1. Businesses get 80% of the benefit of a full-time role
2. They only pay 20% of the cost of a full-time role
3. The hire pays for itself quickly
Everybody wins.
3 shocking but common reasons why SMBs fail:
• They don't hire a bookkeeper
• They don't hire a bookkeeper early enough
• They don't hire a bookkeeper that actually keeps the books clean
Hire a bookkeeper.
Accounting is the language of business.
That's why I encourage every business owner to learn the basics.
Nothing crazy, just 30 days and 3-5 books to be in the top 10%.