Don’t Fall Victim to These DTC Finance Myths

Episode Summary

In this episode of the Free to Grow CFO podcast, Jon Blair and Jeff Lowenstein discuss common finance myths in the DTC (Direct-to-Consumer) world. They focus on three main myths: the necessity of a 13-week cash forecast, the need for overly granular financial projections, and the advantages of working with e-commerce specific firms over horizontal firms. The conversation emphasizes the importance of understanding the purpose behind financial models and forecasts, advocating for a more strategic and less rigid approach to financial planning in the e-commerce space.

Key Takeaways

-You Don’t Always Need a 13-Week Cash Forecast

-Granularity in Financial Models Should Serve Decision-Making, Not Complexity

-Ecom-Specific Finance Firms Deliver More Value Than Generalist Firms

Episode Links

Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/

Jeff Lowenstein- https://www.linkedin.com/in/freetogrow-jeff/

Free to Grow CFO - https://freetogrowcfo.com/

Meet Jeff Lowenstein

Jeff was previously leading M&A efforts at ecommerce aggregator Boosted Commerce where he was the 5th employee. He built processes across M&A, finance and operations to support rapid growth from 0 to 30 brands under management in 2.5 years.

He previously co-founded and exited an app for Shopify merchants and spent time in the Strategic Finance departments of Etsy and Caesars Entertainment. Jeff holds a BA from the University of Pennsylvania and an MBA from Harvard Business School.

He’s worked with hundreds of brands over his career and founded Free To Grow because of his passion for supporting entrepreneurs and helping them succeed. The analytical and financial tools he has developed over the years are specifically crafted for the modern consumer brand.

Transcript

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00:00 Introduction to DTC Finance Myths

01:29 Myth 1: The 13-Week Cash Forecast

12:38 Myth 2: Need for Granular Financial Projections

26:49 The Importance of Financial Modeling

30:06 Myths in Financial Forecasting

31:05 E-commerce vs. Horizontal Firms

39:15 The Value of E-commerce Expertise

44:57 Leveraging Network and Experience

48:00 Closing Thoughts