Navigating Financial Strategies and Cultural Dynamics

This chapter explores the complex financial dynamics of businesses, focusing on profit and loss strategies, and the need for accountability in investment decisions. It also highlights the significance of maintaining a global mindset for Australian startups and the cultural challenges they face, including tall poppy syndrome. The conversation emphasizes the importance of cultivating open communication and rapport among leadership to navigate growth strategies effectively.

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In this episode, CJ sits down with Rob Paterson, CFO of Employment Hero, to talk about smart growth, why not all revenue is good revenue, and Australia's startup scene. They start by discussing when to turn down growth opportunities and which financial metrics are more distracting than helpful. Rob explains the challenges of holding people accountable when you are a growth CFO and how to be a Chief Reality Officer instead of a “CF-No”. He offers a view into the Australian startup ecosystem, highlighting what sets it apart, the challenges local founders face, and why global expansion from day one is a must. Rob also outlines his approach to forecasting and cost control, including how he applies the 80/20 rule to revenue, before sharing a wild fraud story from his auditing days.

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@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(02:18) Sponsor – Vanta | Tropic | NetSuite

(07:06) Not All Revenue Is Good Revenue

(14:09) Metrics: Overrated and Underrated

(16:14) Sponsor – Planful | Subscript | Rippling Spend

(20:18) Lifetime Value (LTV)

(20:11) Vertical and Horizontal P&L

(21:27) Chief Reality Officer: Holding People Accountable