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How Virtual CFO Services are Like a Superhero + Crystal Ball Combined

“A shift is happening. The early CFO, version 1.0, was The Historian. Next came version 2.0, the Real-Time Analyst who caught issues based on real-time dashboards. It now appears that we are beginning to see a new version: CFO 3.0 – The Futurist.” (Source)

I talk about Excel being my crystal ball all the time. With the right numbers, used in the right way, we can literally see the future. Through financial modeling and forecasting, we can predict what will happen with our revenue, expenses, cash flow, and more. It’s not totally failsafe but it is the most educated guess around.

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I love The Futurist CFO 3.0 as described by Intacct, but I think the most successful CFO is a solid combination of all three: Historian, Real-Time Analyst, and Futurist. We can’t know where we’re going until we know where we’ve been. It’s incredibly difficult to make future predictions without any data on past performance.

Intacct says, “the low cost of storage and computing power, coupled with the internet of things revolution, makes available large portions of data for smarter solutions. In short, we can get to answers more quickly by comparing the previously incomparable to discover new trends and relationships that are otherwise beyond our line of sight.”

Yup! And that’s exactly what I do – discover new trends and relationships to help you make better decisions.

When we decide to work together, I have a tried and true process I use to analyze your numbers and make predictions for the future. Here it is:

  1. Do a cursory review of chart of accounts. What is missing or redundant?
  2. Run P&L and balance sheet by month and by year for the past 3-5 years. Review P&L vs budget and variances. Where are the biggest variances? Which revenue streams have grown or decreased the most over time? What are the biggest expense line items?
  3. Calculate a litany of ratios and financial measures to determine areas for opportunity.
  4. Review budget and cash flow. Many small businesses don’t have a budget and most organizations don’t have a cash flow, so we create one. This is the crystal ball that gives the most insight to see around corners. Because we’re projecting out 12 months (or more in detailed financial models), we can make educated and accurate predictions based on the historical review in step 2 above so we can change course NOW instead of later to maximize revenue and minimize risk. It sounds easy because it kind of is!

“Such becomes the case for CFO 3.0 – Master Jedi – seeing around corners and flying through walls as they guide their business to scale and profitability.”

Master Jedi, Crystal Ball Reader, Excel Guru, Business Superhero. Or maybe just Chief Financial Officer. 🙂

PS – Do you want to get this deep insight for your organization? I can apply my process above to your numbers to give you info about your business that you haven’t seen before. Grab a spot on my calendar today to start the conversation!

 

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A nonprofit trend that will influence 2018

Classy just posted an article about the 9 nonprofit trends that will influence 2018, but they left out one critical component of nonprofit management. Finance.

[Side rant: Why does everyone forget finance?! If I accomplish only one thing in my life, it will be to elevate the finance department of nonprofits everywhere! Our work is the foundation to programmatic, fundraising, and marketing success, but we are too often overlooked.]

Since Classy covered marketing, data, graphic design, and others, but left out finance, I thought I would round out their list of nonprofit trends that will influence 2018 and add one trend in for finance.

The question is: What did you notice in 2017 and how do you see it influencing the future?

My answer, when thinking about nonprofit finance, is TRANSPARENCY.

I’ve compiled a Transparency Tip Sheet to help you share your financials the RIGHT way. Download it here! >>

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Historically, the numbers have been left to the experts. The accountant enters the transactions, the CFO reviews them and presents to the CEO and Board, and that’s where it stops. The Program Manager who runs the programs on the ground has no clue what the income statement looks like or why they should care.

Transparency in the nonprofit world isn’t a new concept. A decade ago, the IRS released the revised 990 which included significant governance questions, and Guidestar, the charity watchdog that we all know and love, has already implemented greater standards for nonprofit reporting, including programmatic accomplishments so that we’re not judged on numbers alone.

But has this industry transparency trickled all the way down to the organizational level?

In my experience, it hasn’t. Non-finance staff still have no idea about their organization’s budgets or financial performance.

Why is this important? If they’re not on the finance team, why should they care how much cash is in the bank or how much we raised last month?

Because transparency leads to accountability which leads to ownership. The more transparent we are about our numbers to the entire team, the more accountable they will feel towards their own small budget. When making decisions on buying supplies for their program or talking about the organization at a donor visit, they’ll think about the big picture. They will feel greater ownership for the organization’s financial health if they know the basics of financial performance.

Transparency is one area we focus on and instill in each of my clients. We host training that breaks down the income statement and balance sheet into the most critical and relevant details so that everyone knows what the numbers mean to them. We boil the financial statements down into usable dashboards so even the most numbers-averse can understand their organization’s financial performance at a glance.

So as I look into 2018, I think more organizations will begin to instill transparency in their organizations and will reap the benefits of a more accountable and dedicated team, and as a result, a more sustainable, strong organization.

Industry-wide transparency from the very top all the way down to individual staff members can only reap good for the nonprofit world as a whole.

I’ve compiled a Transparency Tip Sheet to help you share your financials the RIGHT way. Download it here! >>

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The best investment I’ve made in my professional development

Last year I made the biggest investment in my business and my own professional development yet.

I joined a paid mastermind.

Don’t worry, I had no clue what that meant either.

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My mastermind is led by a successful entrepreneur who’s walked in our shoes, and I’m one of five like-minded business owners at similar stages in our businesses. We have “hot seat” phone calls once a week where we pose challenges and share ideas, one-on-one coaching with our leader, three in-person retreats throughout the year, and guest experts who share their entrepreneurial journey with our group.

It’s a year of intensive professional and business development, and it is well worth every penny.

A mastermind is not a one-and-done course where you forget everything you learned once you dive headfirst back into your busy work routine. If you’re thinking about joining a paid mastermind, here are the three best things I’ve taken away from mine:

1. A tight knit community. I now have a tribe that I can go to, no matter how challenging my day, and seek advice, support, or encouragement. Most of these colleagues have been there, done that, in a way that my team hasn’t. I’ve been given the confidence and clarity to make the toughest and most important decisions for my business and life with this tribe behind me.

2. Accountability. It’s so easy to toss ideas around in our heads while driving to the office or chatting with our spouse, then let the ideas disappear into the ether. A mastermind has helped me turn those ideas into reality. For example, I’d thought for months about adding to my team (I even found notes on my phone from a year ago stating that goal!) but my Type A, control freak nature held me back. Once I told my mastermind about this idea, they provided the push I needed to make it happen. And they were right there for the virtual high-fives when I reported back that my team had tripled.

3. Fresh perspective.  My mastermind leader has intentionally brought together a group of diverse people focused on a similar goal – to grow their business with intention. Each member has a unique skillset and network, and all is fair game to share with the others. We’ve made introductions to Facebook Ads strategists, web designers, accountants, and even clients because we all understand that competition is the devil!

So, you may ask, why can’t a group of people just get together, be accountability buddies, and slap a “mastermind” label on it?

You certainly can! BUT, there are two key reasons that structured masterminds are significantly more successful and impactful to your development.

  1. When people make a decision to invest their hard-earned resources into something, they will remain more committed to completing the program and “getting their money’s worth”. A free monthly coffee chat with other leaders at the local Starbucks is great but because you have no skin in the game, one missed session turns into another and another until you’ve completely dropped out. Talk about the total opposite of accountability! If you’ve invested in a paid group, you won’t miss a call unless it’s an absolute emergency. Trust me.
  2. Without a leader, a group of people gathering to “talk shop” veers quickly into a bitch session about a challenging board chair or unstable team dynamics or an annoying funder and it’s hard to come back from that. A mastermind leader ensures that everyone gets their time in the hot seat and often brings guest speakers to the group for enhanced learning.

If it wasn’t obvious, I’m a HUGE proponent of paid masterminds for professional and personal growth, knowledge gaining, and networking.

If you want to know more about masterminds, how you can benefit, my specific experience, or how much they usually cost, go to the bottom right hand corner of your screen and click the chat box. Your message will get to me instantly and I’ll drop you a note right back!

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What my workout taught me about business

I almost didn’t go to yoga this morning. I was awake and laying in bed looking at my phone, reviewing the class descriptions over and over again, convincing myself this particular class would be too hard.

The class I attended a couple days ago kicked my butt. As I am still working on regaining my pre-baby fitness, I found myself struggling with even the most basic flows and skipping every other chaturanga. So when I read that this morning’s class was a faster (more difficult) flow, I looked for easier classes on the schedule instead.

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I was wide awake though, and the rest of the family was sleeping, so I got up and went.

The teacher starts each class by reading a short story, quote, or poem and today was all about stepping out of our comfort zone to take little side trips throughout the road trip of life. She talked about changing the inner narrative that plays in our head telling us that something is too hard or too scary, and reframing that narrative into a more positive one.

Well then.

For someone who waxes poetic about stepping out of one’s comfort zone and trying new things, this was a little bit of a kick in the pants. Just because one class was hard, I was going to take the easy way out next time?

Nope. Not me.

I spent the rest of the class telling myself that I could hold the pose just a little longer, and you know what? It worked. My little side trip down this morning’s yoga practice journey left me feeling energized and ready to conquer the day.

A shift in my inner narrative and my mindset, something that costs literally nothing, changed the course of my entire day, maybe my entire week.

Now apply this to your business or organization. If you ask a potential donor for a $500k grant and they say no, you could tell yourself, Well, this type of donor doesn’t believe in this organization so I may as well only request $100k grants from now on. But if you change your mindset to, I believe in this mission and I know they will too, and you may land three $500k donors because they can sense your passion and dedication.

I know that all this mindset talk may be a bit woo-woo for some people, but it all boils down to this:

When things get tough in your business, what do you do? Scrap a good idea because one person said no? Decide never to hire someone again because you had one bad hire? NO WAY!I challenge you to do just one thing out of your comfort zone this week and practice resiliency to get through it.

I promise it will be worth it.

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Tea chat

One of my favorite things is to sit in a coffee shop with a cup of tea, either being highly productive and churning out work or chatting with a friend. If we were sitting together today, we’d probably chat about the unseasonable warmth this October, our excitement for the upcoming holiday season, and how you’ve had a couple major wins at work lately.

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As for me, currently I am…

Celebrating major business wins for a couple women in my mastermind group. Hiring a business coach and joining her mastermind was the best investment I’ve made in my business to date. The group is part advisory, part accountability, and part friendship and our time in Nashville a couple weeks ago was a celebration of our business growth. (Curious about working with a coach? Message me and I will give you the scoop!)

Planning for 2018. 100 Degrees Consulting has had two great years and we’re continuing to grow so we can serve more nonprofits and entrepreneurs. 2018 is going to be an important year as we streamline our processes and put systems in place to serve our current and potential clients even better. Asana, I am coming for you!

Reading lots of board books. Think, Llama Llama, Chicka Chicka Boom Boom, Madeleine, etc. Baby time takes precedence over reading time right now!

Listening to podcasts every time I hop in the car. My favorites include Pursuit with Purpose with Melyssa Griffin, The Good Journey Pod with Brady Josephson, and Profit, Power, Pursuit with Tara Gentile. What’s in your earbuds this week?

Working on board meeting prep for a couple clients, Q3 financial analyses for a couple clients, and 2018 budgeting for clients AND myself. Tell me your 2018 budget is underway…?

Thinking about nothing. In other words, I’m working on a mindfulness practice that is quite simple, but entails a brief yoga practice first thing in the morning. I’ve gotten accustomed to waking up, grabbing my phone, and immediately checking my email in bed and I think we all know that that is a terrible way to start your day. So instead, I’m hopping out of bed, breathing through a few sun salutations and waiting to check email and social media. So. Much. Better.

Enjoy your Tuesday morning coffee, my friends!

(Want to have a real/virtual coffee date? I love meeting people doing interesting things! Catch up with me here.)

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Why 100 Degrees is so much more than accounting

Empowerment.

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I’ve seen it criticized as a buzz word or jargon in the nonprofit world, but I disagree. Yes, everyone seems to be empowering someone or something but I happen to like the word.

When I think of empowerment, I see someone standing a little taller, speaking up a little more, and taking action with confidence. It’s that feeling that we can do something and make a difference in our own life and in the lives of others.

Empowerment to me is confidence in your skills and abilities to make the best decisions for you.

We often think about it in terms of empowering youth or empowering women but 100 Degrees Consulting does empowering work too.

We give CEOs and Executive Directors confidence in their numbers and their ability to lead their organization. We discuss the financial statements in a way that even the most non-numbers people can understand, and we help provide a clear vision into the future by developing customized forecasting tools.

For us, clarity leads to confidence which leads to empowerment.

We are helping CEOs more strongly lead their organizations through empowerment.

I am so ready to conquer this week and empower our nonprofit and small business leaders out there!

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How a sabbatical can make you more successful

Have you ever dreamed about leaving your 9-5 grind behind and embarking on an epic adventure? Where would you go?

I would head west to our national parks – Bryce Canyon and Zion and Yosemite and Yellowstone – then maybe pop over to Southeast Asia to explore the beaches of Thailand then Australia and Kilimanjaro and Morocco…and so on.

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It’s fun to dream, right?

But Tim Ferriss and his 4 Hour Workweek don’t think this has to be a dream. I’m halfway through this book and feeling incredibly inspired to streamline my business and stop wasting time, so that my time is freed up to enjoy elsewhere.

Have you read the book? What do you think of a 4 Hour Workweek? Impossible?

I will admit I’m skeptical.

I took the leap into business ownership and while I definitely see room to increase productivity, I’m not sure that I could get my working hours down to only four. And convincing my husband to leave corporate America with its cushy and more importantly reliable salary and health insurance and 401(k) is a serious long shot.

What about a sabbatical?

For those who like traveling but don’t want to be a nomad, a sabbatical is a perfect option. Think: a three-month break from work to decompress, experience the world, and focus on living life (not just through someone else’s Instagram feed).

And, as it turns out, sabbaticals can benefit both you AND your company. I think we can all point to the obvious benefits of reducing stress and refreshing your brain with creative ideas so you come back to work energized.

But a recent study called Creative Disruption showed that your organization benefits too.

“Organizational capacity is increased as the second tier of leadership takes on new responsibilities.” And “governance is strengthened as a result of the planning and learning that goes with a sabbatical process.” Talk about testing the limits of your org chart!

I’d say that’s a win-win.

I’ve seen the benefits of being away from my routine for three days – mind space is freed up for more creative thinking and relaxation – so I can only imagine what three months would do for my business.

What do you think? Is a four-hour workweek or a sabbatical in your future?

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How to survive the rollercoaster of entrepreneurship

You know that feeling of anticipation and nervousness as you’re climbing the first big hill in a roller coaster? You’re excited but holding onto the handles tightly because you know the big drop is coming soon, then you crest the hill, barreling down at over sixty miles an hour and your stomach drops. Once you fly down that gigantic hill though, you loosen your grip a bit because the scariest part is over, and your teeth unclench and you relax and scream and enjoy the ride and the upside down loops and ridiculous speeds. Then when it’s over and little car stops, you breathlessly look at your friend next to you, grins plastered to both of your faces, with a look in your eyes that says “let’s do it again!”

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That, my friends, is entrepreneurship.

This week marks one year of saying goodbye to the 9-5, working for myself, and seeing just what 100 Degrees Consulting could be.

To say the very least, it’s been better than expected. The highs are pretty darn high: no employee handbook dictating when I have to be in the office or what days I’m allowed to take vacation. Some days I’ve worked for a couple hours then spent the afternoon at Home Goods. The lows can be pretty trying too though: I am now my own payroll company and entirely responsible for making sure there’s money coming in. Some days I’ve worked until 2am to meet simultaneous client deadlines and I even took a client call at 6 days postpartum. With multiple clients, it’s almost like I have eight bosses instead of one.

While the past year hasn’t been perfect, I did have a pretty smooth transition from traditional employment to entrepreneurship so I’m going to share exactly how I made that happen.


I tested my idea in advance. About nine months prior to my departure from my job (October 2015), I created a website and started thinking about what it would look like to be a CFO consultant to nonprofits. I cold-emailed organizations I thought would be a good fit and they actually wrote back. (Check out my proven strategy for cold-emailing potential clients.) By February 2016 I had two active clients and another two by June 2016. Clearly, my idea had legs and I gained tons of confidence that this could work.

I saved money. I didn’t want to worry about paying the bills or making major sacrifices while I was building my business, so while I side-hustled and still worked my 9-5 I doubled down on paying off debt and socking away money in savings. I left my 9-5 with the equivalent of three months’ salary in the bank. (Full disclosure: I have a husband who covered health insurance!)

I hired a coach.  I’ve no shame in admitting that I’ve never built a business before and have no clue what I’m doing. Sure, some of it is intuition and just taking action but I wanted someone to help me get on the fast track – to have a full client roster and a full pipeline at all times. Enter: my coach. Working with her has been a huge investment that’s paid for itself time and again. Not only do I get practical, strategic advice on business stuff (should I hire more help?), but she helps me get past mental road blocks (I can’t let this client go because there are no more clients out there!)


A year in and I have no intention of going back to the 9-5 grind anytime soon. Now I just need to figure out how to celebrate my one year anniversary! Perhaps a daytime trip to the amusement park?

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The best afternoon routine for a better tomorrow

It feels like every other blog post in my Feedly reader is about some famous entrepreneur’s morning routine. I know now that Elon Musk eats his Cheerios with almond milk at exactly 6:17am every day and Richard Branson meditates on one leg for eight minutes while thinking about palm trees, and their success is SOLELY attributable to this incredible morning routine.

I’m joking. Mr. Musk eats his Cheerios at 7:05am like a normal person.

Okay, okay, all joking aside, I’ve been thinking about morning routines and wonder if this is something that the entrepreneur community has just latched onto and now talks about ad nauseum, or if there’s something to a routine.

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I’ll be the first to admit that I don’t have a solid morning routine. I wake up anywhere from 6:30 to 7:30am and sometimes check emails first thing and sometimes don’t. Sometimes I shower before getting the baby up, and sometimes I’m in my pajamas until the nanny comes at noon. The only constant in my morning routine is that I retrieve the baby from her room upon awakening and feed her and put her down for a nap at the right times, then typically start my work day at 12pm. The details change daily.

With a six month old in my sole care until midday, I’m pretty sure morning routines are not in the cards for at least another six months.

What I CAN get behind, though, is an afternoon routine. Unlike a morning wake-up routine which can be unpredictable with a baby, I know when exactly I will stop working every day and realized there are a few things I currently do without fail before I close out my day.

Do a final scan of the emails. File away what doesn’t require my attention and get the inbox as close to zero as possible.

Update my to-do list. I keep three running to-do lists:

1. My list for the next day in order of priority is Sharpie on paper because nothing is more satisfying than taking a big marker and crossing things off.

2. My list for that week is also on paper, a gigantic Post-It note that I keep stuck next to my computer to keep me focused on the week’s priorities.

3. My long term list is in a Word document that I have open at all times. This document includes strategic priorities for each client so I can always check-in to make sure the work I am doing is towards that greater purpose. It also includes my own business goals, blog post ideas, anything else that pops into my head for 100 Degrees Consulting.

Clean up my desk. Aside from my to-do lists, I’m not a paper person but occasionally I do print out bank statement or other document and I always make sure they’re filed or shredded before the end of the day. Starting the next work day in the midst of a sea of papers would give me major anxiety.

I found a few more great afternoon routine items in this infographic:

  • Sign out of your work email
  • Perform a brain dump
  • Reflect on your day

What does your routine look like? Do you slam the laptop screen shut at 5pm and beeline to the nearest bar? Or do you linger around and chat with colleagues until everyone else leaves? Or maybe you don’t have a stop time and pop in on your laptop until bedtime?

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Small Business Owner vs. Entrepreneur

I recently came across an article that touted the entrepreneur and shamed anyone else who dare bestow that title upon themselves unless they were a tech startup guru.

Now don’t get me wrong – anyone that can come up with a unique idea, understand the technology to make it happen, secure money to bring the product to the masses, and keep that company rolling as it grows at a rapid pace is a special unicorn. I mean, I am still taking notes in a notebook with a pen, so what do I know?

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But because that is now the understood “definition” of an entrepreneur, some people have declared that no one else may claim that title.

I beg to differ.

If you Google “small business owner vs. entrepreneur”, you’ll find hundreds of articles laying out arbitrary definitions of each, most of them painting a picture of the small business owner as a hometown, older guy, smiling in front of his washing machine shop on Main Street, and the entrepreneur as a sleek, young guy in an urban area. In fact, some even use stock photos that are exactly as I just described.

One article says that a small business owner’s company demands “more manual talents” where an entrepreneur’s work demands more “analytical reasoning, creativity, and complex interpersonal communications.”

Unless you count picking up the phone and typing on my laptop, I’m spending a lot more time analyzing and communicating than manually schlepping stuff around. So does that mean I’m allowed to be called an entrepreneur?

If you couldn’t tell, I took a bit of offense to this differentiation between the two and the shaming of small business owners as the lesser of the two, as I believe my business venture to be highly entrepreneurial. According to an Entrepreneur.com article, here are some differences:

Small-business owners have a great idea. Entrepreneurs have big ideas.

What’s your definition of big? Big doesn’t necessarily mean more. My time in the nonprofit world has taught me that impact is the best measure of success and greatness. If my business can help a handful of nonprofits increase their impact tenfold, or help a small business double their revenue, or a startup obtain investor funding, because they understand their numbers better, I think that’s pretty big, even though I may never have offices in 12 countries and a hundred employees.

Small-business owners hold steady. Entrepreneurs love risk.

Leaving anything comfortable is always a risk. It doesn’t have to be millions of dollars risky; it just involves a leap of faith outside of your comfort zone which I love and practice as much as I can.

Small-business owners think about the things they need to finish this week. Entrepreneurs are thinking ahead six months.

I don’t think any small business owner is a good business owner without thinking ahead six months. Of course, we all have our weekly to-do lists (I’m sure that even the savviest entrepreneurs would agree) but I have a big vision for my company that spans not only six months but six years and beyond. The question that swims around in my brain daily: how can we support the most nonprofits, small businesses, and startups in the most impactful way possible?

Small-businesses owners are sentimental with their businesses. Entrepreneurs focus on scaling.

I bet you’d be hard-pressed to find an entrepreneur who wasn’t also emotionally attached to their business in some way. Isn’t that why we work ridiculous hours and read emails in bed and take calls during a beach vacation?

A Silicon Valley pundit may disagree, but one thing we do have in common is:

Passion

We love what we do and are lucky enough to spend our days pursuing something we enjoy. I am proud to be both a small business owner and entrepreneur. Where do you fall in the spectrum?

PS – Nonprofits can be entrepreneurial too!