Independence by Design™ #409: Where is the Money? From Services to E-Commerce: Tracy Bech’s Playbook for Understanding Cash Flow
In this episode of Independence by Design™, I sit down with Tracy Bech, a seasoned entrepreneur who has successfully navigated running multiple companies with vastly different business models. From her first services-based business with high margins to her second venture, an inventory-based e-commerce company with a completely different cash flow model, Tracy shares her journey and the hard-earned lessons about understanding the numbers behind the business.
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Her experience in these contrasting industries inspired her to create 60-Minute CFO, a tool designed to help business owners truly grasp their financials, which is crucial for valuation, cash flow predictability, and ownership success. Tracy’s passion for connecting operations, numbers, and long-term ownership goals makes this episode a must-listen for entrepreneurs wanting to move from day-to-day management to designing a scalable, financially stable business. We dove into how Tracy’s deep understanding of cash flow and metrics allowed her to build systems supporting operational and ownership independence.
We dive into the key steps Matt took to delegate operations, build systems, and free himself from the daily grind, ultimately allowing him to focus on long-term strategy and investing in multiple companies through his holding company, Eidolon Capital. This episode provides a clear path for business owners ready to make the transition from operator to owner, focusing on how to unlock sustainable cash flow, build equity, and design real independence—what I call the Independence by Design™ ownership mindset.
Tracy Bech is a serial entrepreneur, having started, run, and sold 2 successful businesses. She is passionate about lowering the business failure rate by educating business owners and leaders about best practices and business strategy. She is also CEO at Starboard Collectives, where she facilitates groups of CEOs in niche industries. The groups share financial analyses, best practices and focus on business development. Tracy is a nationally recognized speaker on the topic of small business finance, and also conducts a women in business group in Hood River, Oregon, where she calls home. When not analyzing business ratios, Tracy is likely found on or near the water, dirt or snow, enjoying the great outdoors on boats, bikes or skis.
Chapters:
- (00:00) – Tracy Bech’s Entrepreneurial Journey Across Multiple Industries - Skiing, windsurfing, Nike, SwissArmy, and more
- (11:00) – Creating And Maintaining Websites Early On, Transitioning To An E-Commerce Business With An Inventory-Based Model
- (29:00) – Cash Flow Challenges and Differences Between Business Models
- (32:38) – E-commerce Business challenges, Selling the Web Company- Tracy’s First Exit
- (39:00) – Agency Implosion, Changing the Game
- (42:37) – Why Understanding Cash Flow is Critical for Business Valuation and Ownership, Advice for Entrepreneurs on Navigating Multiple Business Models, Creating a Business That Aligns With Personal and Ownership Goals
- (49:00) – Peer Groups, Connecting Operations to Financial Goals: Tracy’s Formula for Success
- (53:36) – Selling Jewelry Online, Competing with Amazon, Nordstrom, and DTC sales, Metroric Rise of Alex & Ani, Preparing for a Super-Bowl Ad Airing
- (59:37) – E-commerce and the Constant Pressure to Sell
- (1:02:50) – Helping Business Owners Understand Their Numbers, Selling for 50% Value, A Company That Died on the Vine
- (1:12:00) – Meyers - Briggs Personalities, Dad Writing a Draft of 60 Minute CFO
- (1:19:00) – Looking Back, Different Directions Tracy Could Have Gone
- (1:25:14) – 60 Minute CFO Teaches You “How to Fish” By Yourself
- (1:28:00) – Final Thoughts: Mastering Cash Flow, Profits, and Ownership Independence
- Share with the owner/operators you know!
Ryan Tansom is a seasoned entrepreneur, speaker, and the founder of Independence by Design™, a transformative ownership framework for growth-oriented business owners. After turning around and selling his family business in an eight-figure exit, Ryan spent over a decade dissecting the lessons learned from his journey. His mission is to help other business owners avoid the pitfalls he encountered by providing them with the tools and knowledge to align their business operations with their personal and financial goals.
With a deep understanding of the challenges faced by owner-operators, Ryan developed Independence by Design™ to empower owner-operators to create sustainable cash flow, grow their company’s equity value, and achieve true independence. He has shared his insights on hundreds of stages, including Vistage, EO, and industry associations, and has reached over 500,000 listeners through his podcast.
Ryan is passionate about helping business owners get unstuck from the day-to-day grind and design a business that serves their life, not the other way around.
Resources:
Website - https://www.60minutecfo.com/
60-Minute CFO Book - https://www.amazon.com/dp/B073R1DKKJ
LinkedIn - https://www.linkedin.com/in/tracybech/
Book - The E-Myth Revisited by Michael E. Gerber – A guide to understanding the systems needed to scale a small business.
Book - Profit First by Mike Michalowicz – A practical approach to managing cash flow and ensuring profitability.
Book - The 4-Hour Workweek by Tim Ferriss – Insight into building automated, systemized businesses.
Independence by Design™ Owner’s Workshop https://ryantansom.com/independence-by-design-workshop
Independence by Design™ Ownership Coaching: Ryan Tansom’s Ownership Accelerator programs and coaching https://ryantansom.com/coaching
Ryan Tansom Website https://ryantansom.com/
Ryan Tansom LinkedIn https://www.linkedin.com/in/ryantansom/
Ryan Tansom Twitter https://twitter.com/RyanTansom
Ryan Tansom YouTube https://www.youtube.com/@ryantansom
Ryan Tansom 30-Minute Ownership Strategy Call https://calendar.app.google/tsKk7z6ohugDchWq8
Sound Bites:
"When you run multiple businesses with different models, you quickly realize how crucial it is to truly understand your numbers." – Tracy Bech
"Tracy’s experience with both service-based and inventory-based businesses shows just how much cash flow models can vary—and how vital it is for owners to get it right." – Ryan Tansom
"60-Minute CFO was born from the need to help business owners stop guessing and start understanding the metrics that drive their company’s success." – Tracy Bech
"The predictability of cash flow and knowing your numbers is key to valuing your business and unlocking true ownership freedom." – Ryan Tansom