Navigating Financial Success in Startups and Beyond

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Inside the "Triangle of Doom”: How Great CFOs Navigate CEO and Board Dynamics

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CHAPTER

Navigating Financial Success in Startups and Beyond

This chapter explores the financial challenges companies face and when to shift from stable roles to supporting startups. It discusses the rise of fractional CFOs and provides practical tips for founders to prepare for their financial futures.

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Rick Smith, multi-time CFO, founder of Bonfire Advisory, and author, joins CJ to discuss the complexities and nuances of the CFO role in venture-backed companies. They delve into the dynamics of the CEO-CFO relationship and examine the qualities CEOs think they want in a CFO versus what they need. Rick introduces the concept of “The triangle of doom” that exists between the CEO, the CFO, and the board, and how to navigate situations when forced to pick sides. Having been a CFO of five different organizations across industries and stages, Rick then explains how he categorizes company stages relating to CFO needs. As the founder of Bonfire Advisory, Rick talks about how founders can set themselves up for financial success before they need a full-time CFO and breaks down some of the most common mistakes early-stage companies make.

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@cjgustafson222 (CJ)

LINKS:

Demystifying the Role of the CFO in Venture and Growth Stage Companies - https://www.amazon.com/Demystifying-Role-CFO-Venture-Companies/dp/B0DS9KF2C8

Rick Smith on LinkedIn - https://www.linkedin.com/in/rick-smith-906939/

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TIMESTAMPS:

(00:00) Preview and Intro

(02:13) Sponsor – Tropic | NetSuite | Planful

(06:49) The Challenges of the CFO-CEO Relationship

(12:59) What CEOs Think They Want in a CFO Versus What They Need

(17:46) Sponsor – Subscript | Rippling Spend | Vanta