In this episode of “What’s Working in E-commerce,” Eagan Heath interviews Matt Putra, a fractional CFO for e-commerce companies. They discuss the importance of financial planning and how it can impact the growth and success of an e-commerce business. Matt shares his experience of helping clients turn their businesses around by analyzing their financial data and creating a plan to mitigate risks and optimize profits.
They also go through a financial calculator to demonstrate how it works. Matt emphasizes the importance of financial forecasting and planning to reduce uncertainty and make optimal decisions. Overall, Matt stresses the importance of financial planning and making data-driven decisions to optimize profits and ensure the growth and success of an e-commerce business.
Episode topics:
– Matt Putra explains the role of a fractional CFO for e-commerce companies and how it differs from a full-time CFO.
– Matt discusses the importance of financial planning for e-commerce businesses and how it can impact growth and success.
– Matt shares a financial calculator and goes through the numbers to demonstrate how it works in analyzing a business’s financial data.
– The importance of blended ROAS as a core number for CFOs to manage cash flow and profit in e-commerce businesses.
– Explanation of a financial calculator that helps businesses understand the impact of marketing initiatives, efficiencies, and decision-making on net profit.
– Using the financial calculator to determine what it takes for a business to break even, including improving ROAS, cutting overhead, or reducing variable costs.
– Cost of Goods Sold and Variable Expenses. Matt Putra explains his method for calculating cost of goods sold and variable expenses, and why it’s important to closely monitor these metrics.
– Contribution Margin and Breakeven Sales. Matt Putra discusses the importance of contribution margin and how it can impact a company’s growth and success. He also explains how to calculate break-even sales.
– Importance of Being Conservative with Fixed Costs. Matt Putra emphasizes the importance of being conservative with fixed costs, especially during uncertain economic times. He shares an example of a client who raised a multi-million dollar venture round but was advised to wait on leasing an office space.
– Role of a Fractional CFO. Matt Putra explains how he helps clients analyze their financial data and create a plan to mitigate risks and optimize profits.
– Importance of Financial Planning. Matt and Igan discuss the importance of financial planning and how it can impact the growth and success of an e-commerce business.
– Who is a Good Fit for a Fractional CFO. Matt Putra explains that his services are best suited for e-commerce businesses with revenue between two and eighty million dollars.
