Run the Numbers

The podcast discusses building sales capacity, forecasting revenue for new products, targeting existing customers vs. net new, sales enablement, product offerings, risks of predicting revenue for new products, long-term forecasting, and avoiding an identity crisis. Insights on staffing ratios, setting sales quotas, optimizing sales capacity, maintaining key ratios, balancing developer and sales teams, and optimizing product team structure for business success are shared.

Matthew Newcomb, the CFO of Chime, joins host CJ Gustafson to delve into the complex world of the payments ecosystem. Matthew demystifies the business model of neobanks, different types of transactions, as well as how unit economics plays a key role in a neobank's business model and strategy. CJ's intro is about the controversy at Carta. Supercharge financial operations with Maxio. Request a demo at www.maxio.com/runthenumbers for 10% off your first year.---SPONSORS: Maxio | TropicMaxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line. By combining approval workflows, supplier management, and pricing benchmarks all in one place, Tropic makes savings opportunities easy to find and act on. 🌴 Visit www.tropicapp.io/metrics to learn how.---X / TWITTER:@matthewsnewcomb (Matthew)@cjgustafson222 (CJ)@TurpentineMedia (Turpentine)---TIMESTAMPS:(00:00) Intro(00:40) What happened at Carta?(12:59) Matt talks about the ways that FinTech companies monetize their business models(15:40) Making money off of free products(17:50) Chime and the bank partnership model(22:10) On user or engagement activity and acquiring banking relations(23:26) Sponsor: Maxio(24:50) Innovating to get things to go faster without breaking the rules and stepping on some toes(27:20) How have the competitive moats either for Chime or in the industry evolved over time?(33:00) Does fundraising for companies like Chime any different than fundraising for a typical SaaS company?(35:00) The differences in costs between an ACH, a wire and an instant transfer(37:35) B2C neobanks and B2B neobanks - are there any key distinctions between the two besides the customer?(38:24) The lifetime value of a Chime user(42:44) Chime's North star metric(45:00) On the qualities that separate a good CFOs from a great CFO(49:40) Matt's example of something he's screwed up on the job(51:00) What would Matt tell his younger self knowing what he knows today?(52:10) Rep Yo Stack sponsored by Tropic 🌴 This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjgustafson.substack.com

Your most pressing questions are answered today by CJ Gustafson and Kurtis Hanni. They tackle Q's such as how best to scale the finance department for startups, what keeps them up at night, and predictions for how the CFO role will change in the near future. They also offer advice about cold emailing, relating to money, and dunking. Kurtis Hanni is a SMB CFO and writer of Frameworks & Finance (https://www.kurtishanni.com/blog)🎧 Run The Numbers has a new Spotify and Apple show link. Follow the links to subscribe and ensure you'll never miss an episode. Give us 5 stars while you're at it! Apple: https://podcasts.apple.com/us/podcast/run-the-numbers/id1723787140Spotify: https://open.spotify.com/show/0zQCkklNnVgMD364kCW5SV---SPONSORS: Maxio | TropicMaxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.Maxio.com/runthenumbers for 10% off your first year. Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line. By combining approval workflows, supplier management, and pricing benchmarks all in one place, Tropic makes savings opportunities easy to find and act on. 🌴 Visit www.tropicapp.io/metrics to learn how.---X / TWITTER:@kurtishanni (Kurtis)@cjgustafson222 (CJ)@TurpentineMedia (Turpentine)---TIMESTAMPS:(00:00) Intro(00:41) Stupidest CFO moves(02:40) Most common pain points that are keeping CEOs up at night?(11:01) Sponsor - Maxio(12:10) What does scaling the finance department look like for startup companies?(18:39) Sponsor - Tropic(30:37) What's the number one thing you attribute your career success to?(41:30) What, if anything, do you think will change about the CFO role five to 10 years from now?(47:00) Do you have any tactics for getting important people to answer cold emails? This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjgustafson.substack.com

In this podcast, CJ demystifies annual planning and discusses the practical steps of strategic planning. They delve into financial forecasting in the startup ecosystem and offer valuable insights on balancing ambition with startup finance. They also explore topics like sales capacity planning, marketing planning and budgeting, and the importance of conservative planning and risk assessment. The podcast provides a blueprint for listeners navigating their own annual planning.

In this episode James Currier the founder and General Partner at venture capitalist firm NFX, guides CJ on the inner workings of marketplace businesses and network effects. He shares insights on the importance of finding a 'white hot center' when starting a marketplace, strategic ways to tackle the trademark chicken and egg problem, and the significance of retention as a metric. Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line, head to www.tropicapp.io/metrics---SPONSORS:Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line. By combining approval workflows, supplier management, and pricing benchmarks all in one place, Tropic makes savings opportunities easy to find and act on. 🌴 Visit www.tropicapp.io/metrics to learn how.---X / TWITTER:@jamescurrier (James)@cjgustafson222 (CJ)@TurpentineMedia (Turpentine)---LINKS:https://signal.nfx.com/NFX Content: https://www.nfx.com/library---TIMESTAMPS:(00:00) Intro(00:42) Discussing the Chicken or the Egg Problem(02:00)The Importance of Finding a Niche in Marketplaces(09:20) Understanding the Economics of Marketplaces(16:00) Sponsor: Tropic(20:50) Discussion on Marketplace, Platform, and Aggregator Classifications(25:25) Understanding Aggregation Theory and Network Effects(26:09) Defining Platforms(27:04) Exploring Substack as a Platform(28:15) The Importance of Network Effects(28:59) Discussing the App Store Fee Controversy(31:30) Understanding Liquidity Ratio in Business(32:50) Navigating Platform Risk in Startups(35:35) The LTV to CAC Trap in Business(38:40) Retention(43:30) The Qualities of a Great CFO According to James Currier This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjgustafson.substack.com

Writer Kyla Scanlon decodes the impact of economic policy on startups. They discuss the 'Vibecession' and the disconnect between consumer sentiment and economic data. They also talk about the Federal Reserve's communication strategies and understanding market reactions. Kyla shares her thoughts on crypto and offers advice for content creators.

In this episode, CJ Gustafson interviews Ryan Wash the Founder and CEO of RepVue whose mission is to help sales pros find the best companies to work for and ensure they're paid fairly. Ryan gives CJ a data-driven inside look into sales capacity, planning models, and sales rep commission plans. Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line, head to www.tropicapp.io/metrics---SPONSORS:Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line. By combining approval workflows, supplier management, and pricing benchmarks all in one place, Tropic makes savings opportunities easy to find and act on. 🌴 Visit www.tropicapp.io/metrics to learn how.---X / TWITTER:@ryan_c_walsh@cjgustafson222 (CJ)@TurpentineMedia (Turpentine)---TIMESTAMPS:(00:00) Intro(03:14) The Importance of Sales Rep Commission Plans(04:57) The Reality of Sales Quota Attainment(05:30) The Impact of Low Quota Attainment on Sales Organizations(07:36) Understanding Sales Rep Compensation Structures(12:52) Sponsor: Tropic (www.tropicapp.io/metrics)(14:05) The Cultural Impact of Sales Quota Attainment(19:10) Understanding Blue Ocean and Red Ocean in Sales(22:32) The Ratio of Quota to OTE in Sales(26:38) Comparing Compensation Plans in Different Business Models(27:27) Understanding the Structure of Compensation Plans(27:46) The Impact of Consumption-Based Models on Sales(29:02) The Frustration of Overpaying Commissions(30:31) The Role of Accelerators and Decelerators in Compensation(30:57) The Controversy and Effectiveness of Sales Spiffs(39:54) The Impact of Post-COVID Economic Conditions on Sales(42:42) The Reality of Sales Rep Attrition and Tenure(47:16) Tech Stack for Sales Reps This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjgustafson.substack.com

Alex Clayton of Meritech Capital discusses key SaaS metrics like ARR per employee, ACV, NDR, and valuation multiples. He also delves into market structure's impact on evaluating companies for IPO. The episode provides insights on company efficiency, strategic departmental placement, and navigating valuation multiples in today's market.

Andy Raskin, a prominent Strategic Narrative consultant, discusses the importance of strategic narrative in conveying a company's value to investors. Topics include naming the old game and the new game, interpreting market transitions as 'life and death' stakes, updating a company's strategic narrative, and examples of impactful sales decks.

On the 20th episode of Run The Numbers, CJ sits down with Rohit Divate, Head of Corporate Finance at Gusto. Rohit Divate has seen Gusto 10x in terms of revenue and headcount in his six years at the company. He and CJ discuss headcount planning, countermetrics, how to set up scalable decisionmaking in hyperscaling startups, and more. Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line, head to www.tropicapp.io/metrics.---SPONSORS:Planful empowers teams just like yours to drive peak financial performance in every corner of your business. Think purpose-built applications for every department, from FP&A to accounting, marketing to HR, all with built-in financial intelligence. ✍️ Go to https://planful.com/metrics to see how you can tackle unwanted surprises in real-time.Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line. By combining approval workflows, supplier management, and pricing benchmarks all in one place, Tropic makes savings opportunities easy to find and act on. 🌴 Visit www.tropicapp.io/metrics to learn how.---X / TWITTER:@rohitdv8 (Rohit)@cjgustafson222 (CJ)@TurpentineMedia (Turpentine)---TIMESTAMPS:(00:00) Intro(01:17) Mailbag questions - How does ARR, or Revenue Per Employee, scale over time as a company grows?(04:42) Introducing Rohit(05:40) How big was Gusto when Rohit started out and how big is it now?(08:00) How to get things done when a company grows big(11:10) How has Gusto's finance department change over time?(14:03) Tour of duty: handling change or roles and responsibilities in a finance team(15:21) Sponsor - Planful(16:20) A day in the life of Rohit: How much is spent on spreadsheets vs dealing with people(17:41) Risks and opportunities - knowing your financials(19:09) What are metrics that gets tracked daily and monthly?(21:50) What's the north star metric?(22:58) The metric that kept Rohit up at night(24:25) On using a non-standard calendar year for financials(25:25) Handling headcount forecasting for Gusto(27:46) Dollar base plans and having autonomy to build your team(29:46) Budgeting for contractors(30:56) The new headcount methodology and dollar-based planning(32:39) Rules of thumb for staffing ratio(34:32) What separates the great finance leaders from the good ones?(36:36) Qualities a CEO should test for in interviews(38:37) What's something Rohit has screwed up before on the job?(40:33) What's something you know now that you'd like to tell your younger self?(41:39) Sponsor - Tropic(42:15) Rohit's finance software stack(43:33) What's the craziest thing you've seen someone try to expense? This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjgustafson.substack.com