“I’ll spend a thousand dollars all day long if I know my profit from that client over their lifetime is going to be an exponential amount of that.
Well then that makes sense, right? You’re paying up upfront to bring them in, but you know that you’re going to deliver services to them that far exceed that acquisition costs.”
- Andrea Jenson
Welcome to a brand new episode of the Cash Flow CFO Podcast. Joining me today is our guest Giles Fabris, who is a scaling mentor for Pinnacle Global Network. Giles has been coaching for 34 years and has assisted hundreds of high-level CEOs in scaling their businesses to major sizes. One of the questions that we are going to discuss and I know that a lot of business owners are wondering about this as well is “When do I need a CFO in my business?” A difficult balance has always existed when deciding when to appoint a CFO. If you recruit too soon, you might not be able to afford them; if you hire too late, you might miss out on opportunities to propel the company forward.
In this episode, we talked about the cost of acquiring new clients, outgrowing your bookkeeper, and the clarity a CFO offers.
Join us to find out more!
“Who knows what’s in stock for 2023? The landscape can change in a heartbeat, right?
And if you understand your numbers, right? He or she understands their numbers, right? Stands a significantly better chance of prevailing and less stress too.”
- Giles Fabris
Managing Your Revenue Accordingly
One of the most crucial business decisions you make is the cost of your good or service. At best, setting a price that is too high or too little may restrict the expansion of your organization. At worst, it might significantly impact your sales and cash flow. Andrea advises that you should price your goods and services in line with what it actually costs you to provide them. If you don’t, then you won’t be able to afford all the additional expenses and you won’t have the proper margins in your firm. You must ensure that the price and sales levels you choose will enable your firm to be profitable when setting your prices.
“When you look at the hiring, it’s a competitive market out there.
The job market is super competitive, and if you don’t set your pricing according to what it costs you to truly deliver that product or service. You’re not going to have the right margins in your business and you’re not going to be able to afford all the other things besides delivering on the sale.”
- Andrea Jenson
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Pinnacle Global Network: https://pinnacleglobalnetwork.com/meet-the-team/