The Free to Grow CFO Podcast

Episode SummaryIn this episode of The Free to Grow CFO Podcast, host Jon Blair sits down with Lio Pinchevski, founder and CEO of Finaloop, to dive deep into the challenges of managing inventory and bookkeeping for e-commerce brands. They discuss the importance of accurate and timely financial reporting, the difference between cash and accrual accounting, and the complexities of inventory management in the e-commerce world. With a unique background as both an accountant and an e-commerce founder, Lio shares insights on the complexities of managing finances for consumer brands and introduces the innovative solutions Finaloop offers. Tune in to gain valuable insights on optimizing your financial infrastructure for growth in the e-commerce space.Key Takeaways:-Discover the financial blind spots DTC brands often face and the risks of using outdated accounting methods.-Learn how automated accounting solutions can provide real-time financial data to improve decision-making.-Understand why accurate inventory tracking and cost management are crucial for avoiding costly stockouts or overstocking.-Gain clarity on the different roles of accountants and CFOs, and when to bring in specialized financial expertise.Meet Lioran PinchevskiLioran Pinchevski is the Founder and CEO of Finaloop, the leading ecommerce accounting and inventory solution that combines software and expert services to deliver real-time financial data and insights for multi-channel DTC brands. And if you wonder how he ended up starting an accounting startup for DTC, it might be helpful to know that he is a tax lawyer and CPA who also founded his own DTC brand before—speaking of putting your hands together... A former lecturer at Tel Aviv University, Lioran, who acquired degrees in Accounting and Law from the universities of TLV and Michigan with top honors, left his position as Partner at PwC to start Finaloop. You can't make this shit up.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Lioran Pinchevski - https://www.linkedin.com/in/lioran-pinchevski-78807529/Free to Grow CFO - https://freetogrowcfo.com/Finaloop - https://www.finaloop.com/Transcript ~~~00:00:00 - Introduction and Background of Lioran Pinchevski00:03:03 - The Importance of Solid Bookkeeping00:08:56 - Developing Financial IQ and Vertical Expertise00:23:47 - Accrual Accounting for Measuring Margins00:30:35 - Separating Tax Accounting from Financial and Managerial Accounting00:32:26 - Accrual Accounting and Tax Books00:41:32 - Challenges of Sales Reconciliation 00:25:22 - Navigating Inventory Accounting00:38:06 - The Difference Between an Accountant and a CFO00:57:29 - Final Thoughts

Episode SummaryIn this week’s episode of the Free to Grow CFO Podcast, host Jon Blair dives deep into conversations with Tana Cofer, founder of RosieRai an Amazon growth agency. They discuss the challenges and strategies for scaling a D2C brand on marketplaces like Amazon, Walmart, and Target. Tana shares her expertise on launching products on Amazon, including the importance of strategic product selection, review generation, and understanding the costs associated with marketplace expansion. They also touch on the sequencing of channel expansion and the nuances of cross-channel marketing spend attribution. Overall, this episode is packed with actionable advice for brand founders looking to optimize their operations and achieve sustainable growth. Key Highlights:-Balancing Growth and Profitability: Tana outlines the dangers of pursuing growth at the expense of profitability and shares tactics for achieving both.-Leveraging Financial Data: Understanding your numbers is key. Tana breaks down how to use financial data to inform strategic decisions.-Customer Data Utilization: Learn how to harness customer data to improve retention rates and drive more repeat purchases.-Challenges of Scaling: Explore the operational and financial challenges DTC brands encounter during the scaling phase and how to overcome them.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Free to Grow CFO - https://freetogrowcfo.com/Tana Cofer - https://www.linkedin.com/in/tanacofer/RosieRai - https://rosierai.com/Glitter Faced - https://www.glitter-faced.com/Transcript ~~~00:00:00 - Introduction 00:05:30 - Tana's background and experience in e-commerce00:10:45 - Importance of sequencing in strategy00:18:05 - Strategies for getting initial reviews on Amazon00:25:28 - Discussion on different agency pricing models00:31:25 - The significance of sequencing in strategy00:36:47 - Common mistakes and misconceptions when launching on a marketplace00:41:43 - Considerations for upfront costs when launching on Amazon00:44:02 - Cross-channel marketing spend attribution and challenges00:50:47 - Final Thoughts

Episode SummaryIn this episode of the Free to Grow CFO Podcast, Jon Blair is joined in the studio once again by his co-founder, Jeff Lowenstein to tackle the essential strategies for scaling a Direct-to-Consumer (D2C) brand profitably. The conversation delves into the challenges of managing in-house manufacturing, the critical move into physical retail, the importance of embedding repeat purchases into product design, and how high gross margins can drive growth through paid advertising. With their vast experience in helping D2C brands scale, Jon and Jeff provide invaluable insights and practical advice for entrepreneurs aiming to grow their brands sustainably.Key Highlights:- Learn how integrating manufacturing and fulfillment processes can lower fixed overhead costs, positively impacting profit margins and cash flow- Discover why scaling beyond $50 to $75 million in D2C often necessitates moving into physical retail to tap into a larger consumer base- Grasp the critical balance between repeat purchase subsidies and first-order acquisition costs for profitable scaling- Explore how segmenting customer data and analyzing cohort behavior can provide valuable insights to refine your marketing strategies- Understand the importance of designing repeat purchases into your product development to drive sustainable revenue growth.Meet Jeff LowensteinJeff was previously leading M&A efforts at ecommerce aggregator Boosted Commerce where he was the 5th employee. He built processes across M&A, finance and operations to support rapid growth from 0 to 30 brands under management in 2.5 years.He previously co-founded and exited an app for Shopify merchants and spent time in the Strategic Finance departments of Etsy and Caesars Entertainment. Jeff holds a BA from the University of Pennsylvania and an MBA from Harvard Business School.He’s worked with hundreds of brands over his career and founded Free To Grow because of his passion for supporting entrepreneurs and helping them succeed. The analytical and financial tools he has developed over the years are specifically crafted for the modern consumer brand.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Jeff Lowenstein - https://www.linkedin.com/in/freetogrow-jeff/Free to Grow CFO - https://freetogrowcfo.com/Transcript ~~~00:00:00 - Welcome to the Free to Grow CFO Podcast00:00:30 - Introducing Jeff Lowenstein00:02:50 - D2C and Vertical Integration: Challenges and Considerations00:18:36 - The Role of Physical Retail in Scaling a D2C Brand00:29:11 - Strategic Approaches to Physical Retain and Pricing Strategies00:32:55 - In-House Manufacturing and Fulfillment00:35:25 - Expanding into Retail with Consultants00:37:08 - Repeat Purchase Strategy: Designing into Product Development00:45:09 - Segmentation and Analysis for Repeat Purchase Behavior00:47:45 - Importance of High Gross Margins for Profitable Scaling01:01:00 - Final Thoughts

Episode SummaryIn this episode of the Free to Grow CFO Podcast, Jon Blair is joined by Nate Littlewood, founder and fractional CFO at Future Ready, to share their e-commerce war stories, focusing on the challenges faced during the COVID-19 pandemic. They discuss the impact on their businesses, lessons learned, and strategies for navigating supply chain disruptions and financial challenges. Key Highlights:- A deep dive into Guardian Bikes' pivot from brakes to premium bikes- Importance of focusing on the long term in business decisions- Managing supply chain disruptions and increased demand during the COVID-19 pandemic- Financial modeling and strategic pivots for direct-to-consumer (DTC) brandsMeet Nate LittlewoodNate Littlewood helps early stage founders navigate their toughest business decisions by providing insights and financial analysis catered to their individual needs. He is the founder of Future Ready, a fractional CFO business, as well as a Lead Mentor with the Food Future Co startup accelerator program. What really sets Nate apart from other fCFOs is his past operating experience as the founder of a 7-figure eComm brand of his own, plus his decade-long global career working on Wall St.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Nate Littlewood - https://www.linkedin.com/in/nathanlittlewood/Free to Grow CFO - https://freetogrowcfo.com/Future Ready - https://www.getfutureready.co/Transcript ~~~00:00:41 - Introduction and Background of Nate Littlewood00:02:07 - Transition to Ecom War Stories00:02:23 - Nate's Background and Journey to Starting Future Ready00:07:35 - John's Background and Journey to Starting Guardian Bikes00:08:13 - Guardian Bikes' Pivot Story00:14:57 - Guardian Bikes' Experience During COVID00:20:19 - Urban Leaf's Experience During COVID00:25:22 - Lessons Learned from COVID Experiences00:38:06 - Negotiating and Leveraging Relationships00:43:37 - The Impact of Stocking Out vs Overstocking 00:46:08 - The Power of Differentiation00:56:16 - The Fabled COVID Santa Story01:01:39 - Final Thoughts

Episode SummaryIn this episode of The Free to Grow CFO Podcast, host Jon Blair sits down with Tony Runyan, Chief Client Officer at Red Stag Fulfillment, to discuss the intricacies of optimizing shipping and fulfillment costs to maximize profitability. Tony shares his unique journey into the logistics world and provides invaluable insights into how e-commerce brands can better manage their shipping strategies. From understanding dimensional weight to navigating peak surcharges, Tony breaks down the complexities of shipping in a way that's easy to understand. Tune in to learn how to turn shipping from a cost center into a competitive advantage.Key Topics:-Tony's background and path to Red Stag Fulfillment.-Breakdown of shipping rates: actual vs. dimensional weight, zones, and surcharges.-Practical tips for designing products with shipping efficiency in mind.-Red Stag's origin story and its unique approach to solving e-commerce fulfillment challenges.Meet Tony RunyanTony Runyan serves as the Chief Client Officer at Red Stag Fulfillment where he has been since 2017. Before working at Red Stag, Tony helped run a software company that primarily served major media brands including Disney, Fox Sports, and NBC Universal. Tony is married to his wife Read and they have three beautiful children: Jack, Ellie, and Silas.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Tony Runyan - https://www.linkedin.com/in/tonyrunyan/Free to Grow CFO - https://freetogrowcfo.com/Red Stag Fulfillment - https://redstagfulfillment.com/~~~[00:00:00] Welcome and Introduction to Tony Runyan[00:02:23] Tony Runyan's background and journey to Red Stag Fulfillment[00:06:52] The founding story of Red Stag Fulfillment[00:10:16] Basics of how shipping rates work[00:17:01] The impact of packaging on shipping costs[00:23:57] Tips on carrier selection[00:33:03] Strategic discount negotiation[00:35:31] Self-fulfillment vs. using a 3PL[00:43:39] Fulfillment network optimization[00:53:46] Final Thoughts

Episode SummaryThis week on the Free to Grow CFO Podcast, host Jon Blair, founder of Free to Grow CFO, welcomes Jared Ward, founder and CEO of Luminous. They dive into the complexities of inventory management, the importance of tracking COGS, and the pitfalls of traditional ERP systems. During their chat Jared shares his journey from launching e-commerce side hustles to leading a $20 million business, and now creating Luminous, a game-changing inventory management system (IMS) designed for modern DTC brands. Jared also shares his insights on the new wave of e-commerce brands, the limitations of traditional ERP systems, and how Luminous fills the gap for mid-market companies. This conversation covers practical advice for tracking landed COGS, integrating personal and professional life as a founder, and why effective inventory management is key to financial health and scalability.Key Topics:- Jared Ward's background and journey to founding Luminous- Challenges of inventory management in scaling DTC brands- Importance of precise inventory tracking and landed COGS-Comparing traditional ERP systems and modern IMS solutions-Integrating personal and professional life as an entrepreneurMeet Jared WardJared Ward started his first e-commerce company when he was 23. Back then, it was selling baby gates and barn door hardware across a couple Etsy shops and on Amazon. While continuing to grow his e-commerce business on the side he got a job as a sourcing manager at a distribution company to learn more about high level supply chain with major retailers (HSN, QVC, Walmart, etc.). Years later, after helping countless DTC brand optimize their supply chain through running Made-in-China's sourcing division, Jared noticed major issues in the way e-commerce companies used software in operations. He built and sold an RFQ management system that helped DTC brands optimize their purchasing. Then, he moved on and became a CEO of a DTC brand at 28. His experience running Qualtry showed even more the gap in the market of software solutions in e-commerce that address the entire supply chain.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Jared Ward - https://www.linkedin.com/in/jared-luminous/Free to Grow CFO - https://freetogrowcfo.com/Luminous - https://www.joinluminous.com/~~~00:00 Welcome and Introduction to Jared Ward02:29 Jared's Background and Experience03:34 Challenges in Inventory Management08:46 The Role of Inventory Management Systems (IMS)17:01 Modern E-commerce and Outsourced Operations21:35 Traditional ERP Systems vs. Modern Needs26:52 The Tech Gap in ERP Systems27:08 Challenges with Big ERP Systems30:01 Evaluating ERP Systems: A Personal Experience36:43 The Importance of Landed COGS47:33 Integrating Work and Personal Life52:20 Final Thoughts

Episode SummaryThis week on the Free to Grow CFO podcast, host Jon Blair is joined by Matt Ezyk, Director of eCommerce at Pet Supermarket. They delve into hybrid physical and digital retail strategies, focusing on AI integration to optimize profits for DTC brands. Matt shares insights from his extensive experience, including successful strategies like Buy Online Pick Up In-Store (BOPIS) and ship-from-store models. The conversation also explores valuable AI tools for smaller DTC brands, emphasizing the importance of personalization, ad optimization, and leveraging customer data. Tune in for an insightful conversation filled with practical tips and strategies to help you scale your DTC brand with a profit-focused mindset. Whether you’re just starting or looking to optimize your existing operations, this episode is packed with valuable takeaways.Meet Matt EzykMatt Ezyk has decades of experience building, scaling and leading digital commerce product, operations and strategy at some of the most innovative companies in the world. Prior to joining Pet Supermarket, he served as Director of Functional Architecture and Director of PMO at RafterOne (f/k/a PixelMedia) with operational oversight of teams working with iconic brands like Skechers and LL Bean. Matt also served in progressive leadership roles at Accenture, Merkle (f/k/a LiveArea) and several startups working with hundreds of global brands like Uniqlo, Disney, Revlon, Tapestry and many more. Matt brings to Pet Supermarket a deep expertise in developing and implementing diverse end-to-end commerce strategies.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Matt Ezyk - https://www.linkedin.com/in/mezyk/Free to Grow CFO - https://freetogrowcfo.com/Pet Supermarket - https://www.petsupermarket.com/~~~00:00 Welcome to the Free to Grow CFO Podcast00:28 Guest Introduction: Matt Ezyk’s Background and Role at Pet Supermarket04:22 Strategies for Hybrid Physical and Digital Retail05:06 Implementing BOPIS and Ship-from-Store Tactics07:03 Challenges and Solutions in Inventory Management16:51 Expanding Geographical Reach Through E-commerce19:29 Leveraging AI for DTC Brands26:33 Challenges in Implementing AI30:13 Overcoming AI Implementation Hurdles35:02 Generative AI: A Continuous Journey42:04 Balancing Personal and Professional Life47:12 Final Thoughts

Episode SummaryIn this episode of the Free to Grow CFO podcast, host Jon Blair dives into the intricate world of scaling DTC brands with a profit-focused mindset. Joining him is Will Holtz, VP of Strategy and Operations at Prescient AI, who also has experience as a co-founder of an aggregator. The discussion ventures into the complexities of data analytics, the impact of iOS 14 on attribution, and how the new tools and mindset in 2024 can significantly help in scaling brands. Will and Jon explore the effectiveness of marketing mix modeling, shifting from last-click attribution, and measuring the impact of top of funnel spending across e-commerce channels. They also discuss aligning KPIs with business outcomes to truly understand the efficiency of marketing efforts. The episode is loaded with insights on improving marketing efficiency, connecting ad spend to contribution margins, and leveraging data to drive better business decisions.Meet Will HoltzWill is the current VP of Strategy & Operations at Prescient AI, a next-gen marketing mix modeling platform to help omni-channel brands measure and optimize ad spend. Previously, Will held leadership roles in eCommerce, from running DTC at Recess and co-founding the Shopify aggregator Rightside Brands to working at the data infrastructure startup SourceMedium. He credits his current interests to a combination of his psychology undergraduate degree and his early roles in finance as an investor, where he honed his analytical skills.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Will Holtz - https://www.linkedin.com/in/williamholtz/Free to Grow CFO - https://freetogrowcfo.com/Prescient AI - https://www.prescient-ai.io/~~~00:00 Welcome to The Free to Grow CFO Podcast00:26 Introduction to Meet Will Holtz02:12 Today's Focus: Data Analytics and Attribution in E-commerce03:31 Will's Entrepreneurial Journey: From Finance to CPG Startups09:58 Challenges in Scaling DTC Brands: Supply Chain and Marketing Costs12:07 The Aggregator Model: Lessons Learned and Strategic Shifts15:58 The Role of Data in Business Decisions17:50 Attribution in E-commerce: Tools and Mindset Shifts25:27 Understanding Top of Funnel Impact26:36 Correlation Between Meta Spend and Amazon Sales28:03 The Importance of Omni-Channel Strategy29:03 Marketing Mix Modeling and Channel Connection34:51 Scaling and Budget Allocation48:19 Final Thoughts

Episode SummaryIn this episode of The Free to Grow CFO Podcast, host Jon Blair, founder of Free to Grow CFO, is joined by his co-founder and Amazon expert Jeff Lowenstein to discuss strategic insights on leveraging Amazon as a sales channel for Direct-to-Consumer (D2C) brands. Jeff shares his extensive experience with Amazon, from working on strategic finance at Etsy to leading M&A at Boosted Commerce. The conversation delves into the differences between Vendor Central and Seller Central, the pros and cons of Fulfillment by Amazon (FBA) versus Fulfillment by Merchant (FBM), and the strategic reasons for expanding into Amazon. They also discuss the financial nuances and cash flow considerations essential for making the transition successful. Tune in to learn how Amazon can be a part of your overall strategic growth, balancing both near-term sales and long-term brand equity.Meet Jeff LowensteinJeff was previously leading M&A efforts at ecommerce aggregator Boosted Commerce where he was the 5th employee. He built processes across M&A, finance and operations to support rapid growth from 0 to 30 brands under management in 2.5 years.He previously co-founded and exited an app for Shopify merchants and spent time in the Strategic Finance departments of Etsy and Caesars Entertainment. Jeff holds a BA from the University of Pennsylvania and an MBA from Harvard Business School.He’s worked with hundreds of brands over his career and founded Free To Grow because of his passion for supporting entrepreneurs and helping them succeed. The analytical and financial tools he has developed over the years are specifically crafted for the modern consumer brand.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Jeff Lowenstein - https://www.linkedin.com/in/freetogrow-jeff/Free to Grow CFO - https://freetogrowcfo.com/Outlive: The Science and Art of Longevity, by Bill Gifford and Peter Attia - https://peterattiamd.com/outlive/~~~00:00 Welcome to the Free to Grow CFO Podcast00:30 Introducing Jeff Lowenstein03:39 Jeff's Journey: From Etsy to Boosted Commerce07:07 The Birth of a Partnership: Jeff and Jon's Story13:29 Deep Dive into Amazon Strategy: Vendor vs. Seller Central18:30 The Realities of Selling on Amazon: Opportunities and Risks24:11 Building a Brand on Amazon: Strategy and Differentiation28:48 The Journey from D2C to Amazon with Guardian Bikes30:45 Navigating Vendor Central Challenges and Transitioning to Seller Central32:44 The Financial Nuances of Selling on Amazon35:39 Strategic Use of Amazon: FBA vs. FBM Explained53:08 Final Thoughts

Episode SummaryIn this episode of the Free to Grow CFO podcast, host Jon Blair, founder of Free to Grow CFO, engages in a deep dive into the world of retail expansion for direct-to-consumer (DTC) brands with a profit-focused mindset alongside guest Renee Hartmann, co-founder of CLA. Renee shares her entrepreneurial and consulting journey, offering insight into market expansion, particularly into China, and the significance of understanding consumer behavior and demand planning in retail. During their conversation, Jon and Renee explore the nuances of navigating the retail sector, offering insights into the challenges and strategies for DTC brands looking to grow beyond their online presence. From understanding the different aspects of retail contracts and payment terms to devising effective marketing strategies and the role of events, this episode provides a comprehensive overview of what brands need to consider for successful retail integration. It’s packed with actionable advice for brand founders considering an omni-channel approach and emphasizes the significance of maintaining a profit-focused mindset throughout the scaling process.~~~00:00 Introduction to the Free to Grow CFO Podcast00:28 The Importance of Retail for DTC Brands02:21 Renee Hartman's Entrepreneurial Journey and Retail Insights05:33 Expanding into the China Retail Market: Opportunities and Challenges07:46 Strategies for DTC Brands Considering Retail Expansion11:01 Navigating Retail Expansion: Inventory and Demand Planning25:01 Leveraging Retail for Brand Growth and the Challenges of Omni-Channel Pricing29:05 Navigating the Challenges of Retail Expansion29:59 The Complexities of Direct-to-Consumer vs. Retail Dynamics31:10 Setting Strategic Goals for Business Growth31:50 Exploring the Potential and Pitfalls of Scaling Beyond DTC38:44 Adapting Marketing Strategies for Retail Success45:28 The Importance of Understanding Retail Contracts and Financing50:29 Closing Thoughts