56 | How to Identify and Solve Operational Issues: Kristen Deese the Virtual CFO for the trades

Show Information Episode Number: 56Date: October 14, 2024Duration: 26:36Host InformationHost: Justin DeeseWebsite: JustinDeese.com Contact: [email protected] Guest InfoGuest: Kristen DeeseGuest Company:Virtual CFO for the TradesGuest Contact: [email protected] Website: www.KristenDeese.comSummary In this episode of the Freedom Blueprint podcast, Justin Deese and his co-host Kristen discuss therole of a Virtual CFO in small businesses. They explore the importance of financial management, the common challenges faced by business owners, and how aVirtual CFO can help identify operational and sales issues through financial analysis. The conversation also delves into pricing strategies, budgeting for profit, and the significance of awareness in managing finances effectively.Kristen shares insights on how to improve gross profit margins and manage overhead expenses, emphasizing the need for business owners to understand theirnumbers to drive profitability.Takeaways●    A Virtual CFO provides high-level financial strategicmanagement without the cost of a full-time CFO.●    Many business owners lack accounting training, whichcan hinder their financial management.●    Understanding key financial concepts early cansignificantly impact business growth and profitability.●    Business owners often rely on bank balances, whichprovides a limited view of their financial health.●    Identifying gross profit margins can reveal areas forimprovement in operations and sales.●    Pricing strategies are crucial; many businessesunderprice their services, affecting profitability.●    Budgeting for expected profit can shift the mindset ofbusiness owners towards better financial management.●    Controlling overhead expenses is essential formaintaining profitability.●    Awareness of financial metrics helps business ownersmake informed decisions.●    It's important to prepare financials for tax time wellin advance. Chapters00:00 Introduction to Virtual CFO Services04:10 The Importance of Financial Management for SmallBusinesses07:44 Identifying Operational and Sales Issues throughFinancial Analysis12:57 Pricing Strategies and Gross Profit Margins16:22 Budgeting for Profit and Managing OverheadExpenses20:23 The Role of Awareness in Financial ManagementKeywords Virtual CFO, financial management, small business, accounting, budgeting, profit margins, operationalissues, sales strategies, pricing strategies, overhead expenses, Kristen Deese, Justin Deese, When Your Business Partner Is Your Spouse, Virtual CFO for the Trades