How CJ Gustafson is building the playbook for CFOs
Aug 15, 2023
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CJ Gustafson, CFO who uses memes and a conversational style, discusses the challenges of being a CFO, the drivers of a sustainable media business, the advantages of SaaS businesses, evaluating financial health, changing dynamics of the ad ecosystem, and building a community.
CFOs value peer recommendations from individuals with hands-on experience when making technology decisions, highlighting the importance of finding reliable sources of information in the business world.
Creating and maintaining expert-driven micro media brands requires consistent effort and skill in conveying information accessibly to those outside the field of expertise.
Deep dives
CFOs seek advice from peers for technology decisions
CFOs often look for recommendations from their peers when making technology decisions, as they value the insights of individuals who have hands-on experience using certain technologies. They want to hear from someone who isn't biased and has a deep understanding of how the technology works in practice. This reflects the importance of finding reliable sources of information in the business world and the value of peer recommendations in decision-making.
Expert-driven micro media brands are promising
The podcast discusses a growing trend of expert-driven micro media brands, which are media companies led by individuals with deep operational knowledge in a specific field. These experts not only possess in-depth understanding of their domain, but also possess the ability to effectively communicate their expertise to others. Creating and maintaining such brands require consistent effort and skill in conveying information in a way that is accessible to others outside the specific field of expertise.
Understanding financial aspects is critical in media business
The conversation highlights the importance of understanding the financial side of the media business. While many people in the industry may lack expertise in finance, having a good CFO can make a significant difference in the trajectory and sustainability of a business. The CFO's role involves making crucial capital allocation decisions, managing costs, and driving financial performance. It is recognized that a solid understanding of financial metrics and business models is essential for sustainable growth.
Different business models in media and their attractiveness
The episode discusses different business models in media and identifies their varying levels of attractiveness. Subscription revenue is considered the most attractive due to its recurring nature. Usage-based revenue, transactional revenue, and advertising revenue follow. On the other hand, one-off revenue from services is considered less attractive due to the limited leverage and need for constant effort. It is noted that multiple revenue streams and leveraging existing customer base are important factors in driving sustainable growth in media businesses.
CJ Gustafson is one of the rare people who is both immersed in his field but does not suffer from the tyranny of knowledge. CJ uses memes and a conversational style with Mostly Metrics to address what those outside corporate finance would consider dry topics. But most importantly, he completely understands the challenges of being a CFO because he’s a CFO. In this episode, we discuss how he built Mostly Metrics, as well as getting into the weeds of why media is often a terrible business and what are the drivers of a sustainable media business.
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