Ep. 214 – The Fundamentals of Financing for Food Companies for the Future with Christine Rico, Consulting CFO at CFO on the Go

Today we have Christine Rico, the consulting CFO for CFO on Speed Dial equips business owners and entrepreneurs with the accounting and financial strategies needed to maximize both profit and social impact.

We dive into what loans are good and what loans are bad and how to really think about it. You’ll learn some cool resources like the Small Business Development Centers, or KIVA, or what a bridge loan is.

We also talk a lot about Business Plans and current events. How did Christine spend time with her clients during the great shutdown in New York? Though this episode was recorded a week ago, I’ve asked Christine to give me an update today. So if you’re a small business struggling in this environment, stay toward the end.

We frontload this episode with the strategies first, and then learn a bit more about Christine!

About Christine

Christine Rico is a financial consultant, business growth expert and social entrepreneur who got her start in financial management while keeping the books for Cooperative Home Care Associates in the Bronx, NY more than 20 years ago. (Cooperative was then a startup and is now the country’s largest worker-owned business)

At CFO on Speeddial, Christine & her team help business owners set and reach financial goals and build companies that are making a positive social impact on their communities with a focus on healthy, local and sustainable food products.

To address the sudden shift in business due to the Corona Virus, CFO on Speeddial is focused on business resilience:  the pivot points, cash needs and overall strategies business owners can use to adapt, survive and thrive in 2020 and beyond.  Christine is also co-Chair of the board of Slow Money NYC and a mentor in the Food Future Co accelerator.

Show Notes

#OMGCPG Facebook Group When someone asks what you do, what do you tell them in a sentence or less?: I help the finances of many food companies What is the million dollar mark?: It’s an arbitrary number but with the margins of the industry, it’s hard to afford a deep level of financial support earlier than that My pricing should be around 2% or less of your revenue How does a CFO help a business?: We see Profit First professionals group Mike McCallowitz What are the most common pitfalls for a balance sheet?: Usually excessive debt (credit card, accounts payable, bank debt) Some debt is good debt An example is a loan versus a salesperson Bridge Loan Stimulus Bill Bad loans are generally NOT transparent Good Loan Sources: KIVA a nonprofit social enterprise lender SBA Loans can take a long time (Small Business Development Centers help a lot) Before you think about finance, work on your business model 5 financial fundamentals Figure out your business plan first then match the money to the model Timeframe, scope, and what you’re building is very important No Business Plan Survives First Contact Business Canvas How many people get Forecasting wrong?: Everyone. For us, we have to take 6-8weeks to make a model fit for you SLOW Money Biggest thing to cut in a recession: salaries and rent payments Figure out February and March weekly expenses and go from there Communicate with your loan people Look at the biggest number you got and make it smaller Four and Twenty Black Birds Carlitos Cocina (Vending Machine) Bodegas are still running because they still have food Korean Markets (Corner Vegetable Stores) are also stocked Bodega tech company gets ousted My Food Job Rocks: I love the diversity of clients Where can we find you? CFOonSpeedDial.com

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