Ep. 019 Interview series: Andy Cristin on Building Successful Businesses as a part-time CFO

Business Breaks - All Things Business

Episode Summary

Our guest today is Andy Cristin, a Virtual Finance Director or Fractional CFO who has over a decade of experience working with owner-managed businesses. Andy shares how he became a Virtual FD / Fractional CFO after realizing he preferred making quick decisions and working closely with entrepreneurs to determine business goals and exit strategies.

As an author, finance director, and qualified accountant, Andy knows the ins and outs of running and building a successful small or medium-sized business.

We learn how Andy's successful exit from his own business taught him valuable lessons such as fine-tuning profitability, hiring people better than yourself, and relying on automation to reduce costs per unit. We also discuss the importance of cash flow management and how a fractional CFO can help small business owners develop a financial strategy by analyzing financial data and creating a plan that aligns with the business's overall goals.

Andy shares his expertise on industry trends, predicting revenue and costs, and the impact of changes in consumer behavior. He emphasizes the importance of getting financial specialists in early and sticking to a focused strategy to avoid common mistakes in small businesses. Finally, we delve into the complexities of preparing for an exit through a merger or acquisition and the need to make oneself redundant as the business owner.

Tune in for a fascinating conversation with Andy Cristin and gain valuable insights into financial strategy and planning for early stage businesses.

Key interview takeaways:

• Fractional CFOs are part-time financial directors who help small businesses with financial planning, direction, and strategy.
• Cash flow is the main reason businesses fail, so understanding and managing cash is crucial for business success.
• Hiring people who are better than yourself is important for business growth.
• Developing a financial strategy that aligns with the business's overall goals and objectives is essential for small business success.
• Taxation is not usually within the scope of a fractional CFO's services, since tax regulations are complex and require specialized knowledge.
• Compliance with overseas transactions and VAT authorities can be complicated and requires expertise that smaller businesses may not have.
• Predictable costs, such as salaries and rent, can be used to estimate revenue and create a simple profit and loss account.
• Understanding industry standards and trends can help predict revenue and costs in businesses with similar models.
• Changes in consumer behavior, such as the shift towards eating at home during COVID, can significantly impact businesses.
• To prepare for an exit through a merger or acquisition, the business owner needs to make themselves redundant and think about what they are going to do after the sale of their business.

Connect with Andy:

Andy’s LinkedIn profile:

https://hi.switchy.io/andy-linkedin

Andy’s Website:

https://hi.switchy.io/pareto-FD

Andy’s Scorecard:

https://www.pareto-fd.com/score-card/

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