Independence by Design™

Joining the chat is Patrick Donohue, an investor and author known for simplifying financial decision-making for entrepreneurs. He emphasizes the crucial difference between cash flow and traditional metrics, arguing that managing free cash flow is key to real wealth. Patrick reveals the pitfalls of relying on confusing financial jargon and shares insights on structuring finances to support ownership goals. He also warns against the risky nature of fintech funding and encourages networking for informed decision-making. Truly a must-listen for business owners!

Most business owners go through a pivotal moment—their first real look behind the curtain at how buyers value companies. For Rens Hayes, that moment came when he went through a sale and due diligence process for his father’s structural steel business. What he learned from that experience completely changed how he approached building and scaling his own company, H&O Structural Engineering. Watch on YouTube In this episode of Independence by Design™, Rens and I break down how he engineered his business for value creation, using Ken Sanginario’s Engineer’s Value Opportunity Profile (VOP) as his roadmap. Instead of scaling haphazardly, Rens built his company by systematically improving the eight functional areas that drive business valuation—the same areas buyers care about most.   Rens and his partner have taken a deliberate approach to aligning cash flow, valuation timelines, and growth goals, ensuring that every dollar reinvested moves them closer to financial independence. Whether you are preparing for an eventual exit or simply want to build a business that works for you instead of the other way around, this conversation is packed with insights that will change the way you think about scaling, hiring executives, and managing risk.Rens Hayes is a structural engineer and entrepreneur who transformed H&O Structural Engineering by applying enterprise value principles to modernize the traditional engineering industry. After experiencing due diligence firsthand, he shifted from operator to owner mindset, implementing Ken Sanginario's Value Opportunity Profile to align business growth with long-term value creation. Hayes helps real estate developers maximize returns through strategic design and cost-efficient engineering, while sharing insights on scaling, capital allocation, and executive hiring—expertise valuable for business owners seeking to build wealth-generating enterprises rather than just larger companies.Chapters:   (00:00) Ryan and Rens reconnect after several years and discuss their shared experience in Ken Sanginario's CVGA training program  (02:16) Rens’ journey with H&O Structural Engineering and his decision to not take over his family's steel business  (04:07) The importance of organized financial data and M&A understanding  (07:10) Ken's eight business functions framework and how small business owners often excel in only a few areas  (11:24) Risk assessment and the strategic approach to capital deployment in business growth  (15:19) Personal drive, potential, and the relationship between noble goals and motivation  (21:47) Rens' relationship with co-founder Jeremiah  (34:23) Marketing strategy in professional services, development of compelling offers  (43:13) Data-driven decision-making in marketing and sales efforts  (49:51) Transitioning from founder-led to executive team leadership  (56:47) Open book management and team-wide bonus structures tied to company performance  (1:31:47) Developing a predictable revenue engine as a foundation for strategic executive hiring  Rate, comment and 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: H&O Structural Engineering  LinkedIn: Rens Hayes  Podcast: The H&O Podcast  Independence by Design™ 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:  "Scaling a business isn’t just about revenue—it’s about building an asset buyers actually want." – Rens Hayes  "The biggest mistake founders make? Hiring executives before they know what success looks like." – Ryan Tansom  "If you don’t know how to allocate capital inside your own business, you’re just hoping for growth—not engineering it." – Rens Hayes  "There’s a difference between working in the business and working on the business. The sooner you figure that out, the sooner you get your time back." – Ryan Tansom   

In a world full of business jargon and complicated metrics, free cash flow stands out as the foundation of value creation for both owner-operators and investors. kXVm3nQBij8  Watch on YouTube Ken Sanginario returns to focus on this core principle, unpacking the noise around financial metrics and zeroing in on sustainable free cash flow—cash available after debt, taxes, and working capital. Together, we demystify the jargon that often confuses owner-operators and show how prioritizing free cash flow is the key to growing value over time. We explore how Ken’s VOP system helps business owners identify where to place their time and reinvestment to maximize value while freeing themselves from the grind of day-to-day operations. By understanding how to measure and optimize free cash flow, owner-operators can shift from being laborers in their businesses to being true owners of a valuable asset. This episode builds on everything we’ve discussed in recent episodes—valuations, owner-operator goals, buyer goals, deal structures—and ties it to a core principle: sustainable free cash flow is the outcome of a well-run business that creates value with its time, resources, and strategy. If you’re ready to simplify the noise, focus on what matters, and start building a business that works for you, this episode is your guide. Ken Sanginario is the founder of Corporate Value Metrics and the creator of the Value Opportunity Profile (VOP), a tool that helps business owners identify where to focus their time and resources to grow sustainable value. Ken specializes in simplifying complex financial and operational concepts, empowering owners to take control of their business’s future. Chapters:  (00:00) Introduction, free cash flow and business value (05:41) Misleading business valuations and multiples in the marketplace (08:25) Deal structures and the reality of business transactions (12:00) Weighted average cost of capital and business financing concepts, the relationship between debt, equity, and optimal capital structure (16:00) How opportunity cost and investment returns inform business decisions (24:17) Return on equity versus cash flow metrics, valuing business cash flows and taxation (34:32) Analyzing financial metrics and opportunity costs, using IRR (41:08) Balancing owner distributions with business reinvestment needs (49:40) Connecting financial projections with operational constraints, sustainable cash flow in building business value (1:06:28) How business owners navigate expert advice and competing priorities, owner vs. operators (1:13:00) Creating sustainable growth through business balance (1:15:27) Closing thoughts on improving business owner outcomes and education Rate, comment and 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.corporatevalue.net/ Ken Sanginario LinkedInVOP Value Growth Software Episode 425: “Unlocking Business Value: Practical Tools for Growth and Ownership Goals with Ken Sanginario & John Lawlor” Episode 426: “Understanding Buyers: How Ownership Structures Shape M&A Goals with Jeff Buettner” Episode 427: “Navigating Deal Structures: The Hidden Factors That Impact Your Proceeds with Dave Diehl” Independence by Design™ 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 “All the jargon boils down to one thing: free cash flow. It’s what every owner and every investor cares about.” – Ryan Tansom “Free cash flow isn’t just a metric—it’s the ultimate outcome of a well-run business that uses time and resources effectively.” – Ken Sanginario “Money is stored time, and time is your most valuable resource. Focus your energy where it creates the highest value.” – Ryan Tansom

Most business owners focus on the offer price when selling their business—but the deal structure is what ultimately determines how much you walk away with, when you get it, and how much risk you take on.   Watch on YouTube In this episode of Independence by Design™, I sit down with Dave Diehl, CEO of Prairie Capital Advisors, to demystify the complex world of deal structures. Dave walks us through the key components of a transaction—working capital adjustments, earnouts, equity rollovers, seller financing—and how these elements impact the final proceeds for a seller.  We also explore how deal structures reflect both buyer and seller goals, and why aligning these goals is critical to a successful transaction. If you’ve ever been confused by the fine print in a deal or wondered why buyers push for certain terms, this conversation will give you clarity and confidence to navigate your own transition.   This episode builds on the foundations from previous episodes, diving into the practical details of how deals are structured and the hidden factors that can significantly impact your outcome. Whether you’re preparing to sell, thinking ahead, or just trying to understand what a good deal looks like, this conversation is packed with insights and actionable advice.   Dave Diehl is the CEO of Prairie Capital Advisors, specializing in helping business owners navigate the complexities of M&A transactions and ESOPs. With decades of experience in deal structuring, Dave has guided countless owners through successful transitions, ensuring their goals are front and center. Chapters:   (00:00) Introduction, discussing deal structures, understanding working capital    (04:11) Impact of working capital on business sales, optimizing cash flow and working capital    (13:30) Transitioning to deal structures, Prairie Capital Advisors' approach    (19:15) Balancing ownership and operations    (27:14) Earnouts and their implications    (38:32) Valuation and fair value, seller notes in acquisitions, private equity buyers and capital challenges, the role of equity in private equity deals    (44:08) Risks and realities of private equity investments, including the impact of debt on company growth, challenges with private equity and debt structures, and the importance of evaluating assumptions in private equity deals. Additionally, we'll explore due diligence, partner selection, and the different types of buyers and their expectations    (53:36) The ESOP option: Benefits and considerations, structuring ESOPs for optimal outcomes, ESOPs vs. private equity sales    (1:06:44) Estate planning and warrants in ESOPs, operational strategies and value growth    (1:16:05) Prairie Capital Advisors: Client profiles and services    (1:20:04) Conclusion and final thoughts  Rate, comment and 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:  Dave Diehl LinkedIn  Prairie Capital Advisors  Episode 425: "Unlocking Business Value: Practical Tools for Growth and Ownership Goals with Ken Sanginario & John Lawlor"  Episode 426: "Understanding Buyers: How Ownership Structures Shape M&A Goals with Jeff Buettner"  Independence by Design™ 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  “The deal structure is where the rubber meets the road. It’s not just about the offer price—it’s about what you actually walk away with.” – Dave Diehl  “Earnouts, equity rollovers, and working capital adjustments can make or break a deal. Understanding them puts you in control.” – Ryan Tansom  “The right deal structure aligns with both the buyer’s and the seller’s goals—it’s a balancing act.” – Dave Diehl 

Most business owners think a high offer price is the ultimate goal in selling their business—but the truth is, every buyer has their own game plan, and not all offers are created equal. Watch on YouTube In this episode of Independence by Design™, I sit down with Jeff Buettner from ButcherJoseph to explore how private equity firms, strategic buyers, and family offices approach acquisitions and structure deals to meet their goals. We break down the nuances of each buyer type, their timelines, and their financial structures so you can better understand what they value and how their goals might align (or conflict) with yours.  We also discuss how to position your business for the right buyer, evaluate offers beyond the headline number, and ensure the deal you choose fits with your long-term ownership goals. If you’ve ever wondered what drives buyers’ decisions or how their priorities impact your transaction, this conversation will demystify the process.  Jeff Buettner is a seasoned advisor at ButcherJoseph, specializing in helping business owners navigate the complexities of M&A transactions. With deep experience in private equity, strategic acquisitions, and family office deals, Jeff has guided countless owners through the sale process, aligning transactions with their financial and personal goals. Chapters:   (00:00) Introduction and guest overview with Jeff Buettner from ButcherJoseph, why understanding buyers’ goals is critical for owner-operators, ESOPs, Private Equity, and Third-Party Buyers  (12:00) Financial and strategic buyer motivations: hurdle rates and cost of capital   (25:10) Navigating buyer-seller assumptions in acquisitions, aligning buyer and seller goals: how mismatched timelines and objectives can lead to deal tension  (30:45) Preparing your business for sale: practical steps to make your company attractive to different types of buyers  (44:00) Evaluating acquisition transaction structures: ESOPs, tax savings, and deal challenges, what large corporations look for in acquisitions and how they drive shareholder value, private equity transaction structuring: leveraged buyouts and growth CapEx    (48:37) Analyzing ESOP vs. third-party sale- pros, cons, and strategic considerations    (56:00) Maximizing free cash flow and transition ownership: management buyouts and ESOP planning   (1:01:40) Navigating business value and capitalization: market dynamics, financial engineering, and operational improvements   (1:11:00) Closing thoughts - macro environment, the new administration, current lending and investment landscape  Rate, comment and 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:  ButcherJoseph & Co.   Jeff Buettner LinkedIn  Independence by Design™ 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  “Each buyer plays their own game of capitalism, driven by their unique goals and ownership structure. Understanding their playbook helps you align the deal with your goals.” – Ryan Tansom  “Private equity firms focus on maximizing value within a timeline, while family offices prioritize long-term cash flow. The right fit depends on your goals as a seller.” – Jeff Buettner  “The deal isn’t just about the offer price—it’s about finding a buyer whose goals align with yours.” – Ryan Tansom 

As a business owner, you’ve likely heard terms like EBITDA, working capital, and Weighted Average Cost of Capital (WACC)—but do they feel relevant to your day-to-day decisions? In this episode, I sit down with Ken Sanginario and John Lawlor to demystify these concepts and show how they directly impact your ability to grow, scale, and transition your business. Watch on YouTube We’ll explore how to measure and grow your business’s value using actionable tools, like Ken’s Value Opportunity Profile (VOP), that connect financial performance to your ownership goals. Whether you’re thinking about selling in the next few years, stepping back from day-to-day operations, or just getting a clearer picture of your business, this conversation will help you build a roadmap for sustainable growth.   This episode is packed with practical advice and relatable insights that will bridge the gap between high-level financial concepts and the operational realities you face as an owner-operator. Let’s make the numbers work for you, not the other way around.  What You’ll Learn in This Episode:  Why valuation is more than just a multiple of EBITDA—and how it reflects how well your business operates without you.  The connection between operational efficiency, financial metrics, and long-term business value.  How the Value Opportunity Profile helps you identify areas to improve your business.  What buyers look for in a business—and how to position yours for maximum value.  How to connect financial metrics to your personal ownership goals, whether it’s scaling, selling, or stepping back. Ken Sanginario is the founder of Corporate Value Metrics and the creator of the Value Opportunity Profile (VOP), a system designed to assess and enhance the eight functional areas of a business. With over 30 years of experience as a CPA, business advisor, and valuation expert, Ken has worked with countless owner-operators to help them unlock sustainable growth, increase equity value, and achieve their ownership goals. His practical, results-driven approach ties financial fundamentals to strategic decision-making, making him a trusted partner for business owners looking to maximize their independence.John Lawlor is a seasoned business advisor, leadership coach, and expert in organizational development. With over two decades of experience helping businesses scale effectively, John specializes in aligning leadership, culture, and operations to create high-performing organizations. A key collaborator in the development and application of the VOP, John brings a deep understanding of how behavior and strategic planning drive business success. His focus on fostering communication and engagement across all levels of a company has made him a sought-after resource for owner-operators aiming to build businesses that work without them. Chapters:   (00:00) Introduction of guests John and Ken: Why understanding your business’s value matters for owner-operators  (06:00) Intro to guests, John's background and his focus on helping businesses improve, how John and Ken began working together  (10:00) Ryan's journey of understanding weighted average cost of capital and return on equity, explanation of inconsistent accounting measures, valuation demystified: beyond EBITDA—what buyers really care about  (19:00) Exploring the concept of return on equity and its relationship to free cash flow and investor expectations  (25:00) Highlighting the importance of understanding free cash flow in business decisions, using an example of a client with high EBITDA but low free cash flow  (35:15) Explaining IRR, risk-adjust cost of capital, cash-on-cash returns and the time horizon of investments, aligning financials with ownership goals: connecting the numbers to your vision for the future  (43:00) Businesses need to think like investors and focus on maximizing cash flow and value, not just accounting metrics, how to position your business for buyers, investors, or scaling.  (51:00) John weighs in, what motivates the owner-operator? The decision to sell a business versus continuing to operate it, considering factors like CEO salaries and lifestyle needs  (1:00:00) Value Opportunity Profile (VOP): A tool for assessing and improving business performance, the role of cash flow and operational efficiency in creating value, pushing strategic planning, projections and financials  (1:30:00) The multi-layered filter system, John departs, Ken continues, what value does the business need for the future? Strategic planning and VOP use for future planning  (1:45:00) Asking clients to take a step back, using the three-statement model, closing thoughts, steps to take today to increase value and gain clarity.  Rate, comment and 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:Ken Sanginario LinkedIn  John Lawlor LinkedIn  Corporate Value Metrics  Independence by Design™ 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:  “Valuation isn’t just a number—it’s a reflection of how well your business can run without you.” – Ken Sanginario  “Simplifying metrics like WACC and working capital helps you make better decisions about growth and cash flow.” – Ryan Tansom  “The Value Opportunity Profile turns a messy business reality into a clear roadmap for creating value.” – John Lawlor 

Running a business often feels like juggling flaming torches—especially when cash flow, growth, and operations clash with your personal goals. Today, I sit down with Jimmy Fritz, a good friend and second-generation business owner of The Wedding Shoppe and Kennedy Blue, to unpack his journey from being entrenched in daily operations to becoming a true owner-operator. Jimmy’s experience of taking over his family’s wedding business and e-commerce brand is packed with lessons on managing growth, aligning operations with ownership goals, and achieving financial independence. Watch on YouTube Jimmy’s journey reflects what so many of us face: balancing family business dynamics, operational challenges, and the ultimate question—what's the point of all this? From chasing vanity metrics and enduring financial chaos to implementing EOS and redefining ownership, Jimmy shares the frameworks and lessons that enabled him to align his business operations with his time, cash flow, and wealth goals.   You’ll hear how he weathered the pandemic, leveraged EOS, and integrated a financial roadmap to simplify decisions and drive sustainable success. Whether you’re struggling with delegation, financial forecasting, or just trying to step out of daily operations, this episode is packed with actionable insights to help you design a business—and a life—that works for you.   Jimmy Fritz is a second-generation entrepreneur and owner of a family-run wedding retail business and an e-commerce brand. With a passion for strategic planning and financial clarity, Jimmy has transformed his companies to align with his personal goals of time freedom and wealth creation. Through his journey, he’s mastered the art of balancing operational efficiency and long-term ownership success.   Chapters:   (00:00) Introduction: Jimmy Fritz, evolution of second-generation business ownership  (04:30) The family business transition: Navigating second-generation challenges, the revenue vs. profit myth, breaking free of vanity metrics  (12:40) Implementing EOS: The good, the bad, and the ugly  (18:20) Pandemic resets: How COVID forced clarity on cash flow  (23:10) Redefining success: From scaling chaos to sustainable profits, navigating growth and delegation in business  (37:14) Strategies for entrepreneurial growth, aligning goals with operations, the time-cashflow-wealth framework, managing business growth and financial accountability  (45:15) Financial forecasting and business responsibilities  (55:00) Financial visibility, the power of a three-statement model  (1:06:00) CEO responsibilities and future planning, competing with cheaper dresses  (1:12:31) Business ownership and financial planning, delegating and hiring, building a team to scale  (1:23:00) Final takeaways, the reality of entrepreneurial growth, Jimmy’s goals, business as a tool, not a trap, financial education and empowerment  Rate, comment and 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:  Wedding Shoppe Inc.  Jimmy Fritz LinkedIn  Jimmy Fritz’s previous appearance on Independence by Design™  "How to Create a Strategic Financial Roadmap"   Independence by Design™ 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  "If you’re stuck in the day-to-day grind, you’re not truly an owner—you’re an operator." – Jimmy Fritz  "Growth without profitability is a time bomb, not a success story." – Jimmy Fritz  "The financial statement doesn’t lie. It’s the ultimate source of truth, and it can either guide you to clarity or chaos." – Jimmy Fritz   "The ultimate freedom is having your business provide the time and cash flow you need without consuming your life." – Ryan Tansom  "Ownership independence isn’t just about making money—it’s about making decisions that align with your personal goals." – Ryan Tansom 

Many business owners struggle to connect their financials to actionable insights and ownership goals. In this episode of Independence by Design™, I sit down with Tracy Bech—founder of the 60-Minute CFO and creator of a financial forecasting system that simplifies the three-statement model—to break down the 14 Ownership KPIs that every owner-operator needs to master. Together, we explore how understanding these metrics can transform decision-making, align operations with ownership goals, and empower business owners to scale sustainably while maintaining control over their financial destiny.Watch on YouTube Tracy explains why free cash flow is the ultimate metric for any business and how tying income, balance sheet, and cash flow statements into a unified model creates a clear roadmap for growth. We dive into real-world examples, practical strategies, and the mindset shifts needed to move from financial confusion to clarity, providing listeners with the tools they need to transition confidently into a true ownership role. This conversation highlights the importance of tying financial metrics to ownership goals while maintaining simplicity, offering owner-operators a clear path to operational and financial excellence. By focusing on the 14 Ownership KPIs, owners can make informed decisions, delegate effectively, and achieve long-term success. Tracy Bech is the founder of the 60-Minute CFO, a financial expert, and a business owner who has transitioned from services-based entrepreneurship to mastering the complexities of inventory-driven e-commerce. Her experience inspired her to create tools and systems that simplify financial management for owner-operators. Tracy’s approach is rooted in the belief that clarity and simplicity empower business owners to align their financial decisions with their long-term goals. Her methodologies are practical, accessible, and transformative for anyone seeking to connect financial insights to ownership success. Chapters: (00:00) Introduction: simplifying financials for owner-operators   (06:00) The three-statement model: income, balance sheet, and cash flow   (12:00) Why free cash flow matters more than revenue, balancing receivables and payables  (18:30) Breaking down the 14 ownership KPIs   (25:00) Real-world applications: aligning metrics with decisions   (28:23) Operational cash flow strategies (33:00) Tracy’s framework: the 60-minute CFO process (48:30) Key financial metrics to monitor, scaling growth while maintaining financial control, understanding profit margins (55:00) Terms, tools and resources for financial clarity   (1:07:15) Key metrics and KPIs  (1:18:43) Optimizing cash flow and inventory (1:24:10) Navigating entrepreneurial challenges, bankruptcy, understanding KPIs (1:31:12) Mastering cash flow management strategies (1:50:29) Strategic forecasting and future planning Rate, comment, and share with the owner/operators you know! Rate, comment and share with the owner/operators you know! Resources:60MinuteCFO.com Tracy Bech LinkedIn 60-Minute CFO Book  Tracy Bech on X   Previous Episode #409: Where Is the Money? From Services to E-Commerce: Tracy Bech’s Playbook for Understanding Cash Flow Independence by Design™ 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: “The only thing that matters is free cash flow, and understanding it is the key to making better decisions.” – Ryan Tansom “The 14 Ownership KPIs are like the dashboard for your business. They’re not just numbers; they’re the compass guiding your strategy.” – Tracy Bech “If you’re lying on your balance sheet, you’re lying to yourself. Transparency is everything.” – Tracy Bech

Many business owners wrestle with understanding the CEO’s role and its connection to ownership. In this episode of Independence by Design™, I sit down with Joel Trammell—a seasoned entrepreneur who has grown and sold two companies to nine-figure exits—to break down what a CEO truly does, how the role aligns with ownership, and how owners can transition out of day-to-day operations. We explore the strategies and frameworks that enable owner-operators to scale their businesses, delegate effectively, and step fully into their ownership role by managing a CEO with confidence.Watch on YouTube Joel explains how most businesses grow to the point where almost every decision flows upward to them (the CEO), creating bottlenecks and inefficiency. He shares how to flip this dynamic by pushing decision-making downward through clear ownership goals and operational alignment. This conversation highlights how critical it is for owner-operators to shift into an ownership role where they can effectively manage the CEO and delegate responsibilities. By clarifying the CEO’s job and implementing a framework for accountability, owners can step out of operations without their business falling apart, reducing anxiety while setting up their organization for sustainable growth. Joel Trammell is a seasoned CEO, entrepreneur, and educator with a passion for helping business leaders master the art and science of the CEO role. Having built two companies to nine-figure exits, Joel now dedicates his time to coaching, writing, and teaching through his CEO Bootcamp and his platform, Managing the Future. His approach combines practical systems with first-principle thinking, empowering leaders to align their teams, set strategic objectives, and achieve long-term success. Joel’s work is a must for any owner looking to step back or scale their business sustainably. Chapters:  (00:00) Intro - Check out Independence by Design™ videos, now on Spotify in addition to YouTube (2:00) Revisiting Joel’s framework: A CEO’s job is managing the future, avoiding daily tasks for effective future planning, transitioning from owner-operator to strategic CEO is crucial (10:20) Aligning ownership goals and CEO expectations (14:00) Balancing stakeholders: consistent value for customers, employees, and shareholders, case study on Boeing (17:25) Aligning company mission and strategic objectives is essential. Financial metrics should not overshadow employee and customer satisfaction, building clarity in vision and accountability (28:56) Adopting future-focused strategy monitoring techniques, clear goal-setting and expectations, setting quarterly and strategic goals, teams other than just sales should provide future-oriented insights using simple assessment scales (33:00) Hiring the right CEO, success in previous roles doesn't guarantee effective CEO leadership, CEO failure rates, curiosity and broad interest over industry expertise (41:11) CEO psychology: delegating without guilt, traditional hiring process often overlooks necessary CEO traits (46:50) Understanding product and customer is key for CEOs, bootcamps focus on developing essential leadership skills, training for future-focused leadership, the mental model (53:50) Role of chief of staff in supporting CEOs, supporting the CEO in project management. CEO peer groups provide necessary support and camaraderie, building CEO confidence and competence (59:00) Joel’s goals and lifestyle, final thoughts, getting in touch with Joel Rate, comment and 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: Managing the FutureJoel Trammell LinkedInTwitter: @TheAmericanCEOEp. #251 - What Does it Take to Be a Good CEO? with Joel TrammellChief Executive Operating System by Joel TrammellThe CEO Tightrope by Joel TrammellIndependence by Design™ Workshop: https://ryantansom.com/independence-by-design-workshop Independence by Design™ Ownership Coaching: Ryan Tansom’s Ownership Accelerator programs and coaching https://ryantansom.com/coachingRyan Tansom Website https://ryantansom.com/Ryan Tansom LinkedIn https://www.linkedin.com/in/ryantansom/Ryan Tansom Twitter https://twitter.com/RyanTansomRyan Tansom YouTube https://www.youtube.com/@ryantansomRyan Tansom 30-Minute Ownership Strategy Call https://calendar.app.google/tsKk7z6ohugDchWq8Sound Bites: “The CEO’s job is not to know everything—it’s to manage the future.” – Joel Trammell “At scale, the CEO’s role shifts from being the expert to empowering others to make decisions that align with your vision and values.” – Ryan Tansom “If you’re not clear on your ownership goals, how can you expect your CEO or leadership team to be?” – Ryan Tansom

If you’ve ever read Profit First or The Pumpkin Plan, you know Mike Michalowicz delivers game-changing ideas for entrepreneurs. In this episode, we dive into his newest book, All In, and talk about the systems, frameworks, and mindset shifts you need to build a business that thrives—with or without you in the room. Watch on YouTube Mike and I tackle the biggest concerns owner-operators face:  Cash flow chaos: Why Profit First still works and how to implement it to create financial discipline.  Hiring the right people: How to find and develop A-players by focusing on potential over experience.  Feeling stuck as the operator: The key steps to embed your culture, systems, and vision so your team can execute and scale without you micromanaging. Mike’s insights, rooted in behavioral psychology, provide a clear path to solving these challenges, showing you how small, consistent wins add up to big results. By tying these ideas into the Independence by Design™ framework, this episode will help you:  Regain control of your finances with tools like Profit First.  Build a team that thrives—so you don’t have to micromanage.  Systematize your business so you can focus on strategy and freedom.   If you’re ready to stop running on the hamster wheel and go all in on building a business that delivers cash flow, equity growth, and independence, this conversation will show you the way.  Mike Michalowicz is the creator of Profit First, Clockwork, and the author of 9 books, including his latest, All In. By age 35, he built and sold two multi-million-dollar companies, only to lose his fortune and start over. Now, Mike is devoted to helping entrepreneurs build healthy, strong companies through practical strategies. A keynote speaker and former Wall Street Journal columnist, Mike’s work has helped hundreds of thousands of businesses worldwide thrive.  Chapters:   (00:00) Intro - Mike Michalowicz introduces the Dumbo model for business success  (08:51) Curiosity transforms weaknesses into strengths through education  (14:15) Innovative hiring beyond traditional resumes and interviews, Home Depot's practical assessments redefine talent evaluation criteria, events as tools to attract top talent    (20:09) Personal operating manuals for workplace dynamics, role of AI in identifying hidden talent in recruitment  (32:42) Resurgence of human connection in business practices, valuing people over profits with conscious capitalism   (41:15) Leaders that ‘care gently’ for their team’s personal issues benefits business productivity, importance of regular communication in leadership    (51:34) Overcoming entrepreneurial struggles and finding purpose, eradicating poverty,  engaging with diverse audiences through speaking events  Rate, comment and 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: Connect with Mike Michalowicz:  Website: mikemichalowicz.com  LinkedIn: Mike Michalowicz  YouTube: Mike Michalowicz  Twitter: @MikeMichalowicz  All In by Mike Michalowicz – How to recruit, retain, and empower a high-performing team.  Profit First by Mike Michalowicz – The foundational system for managing cash flow and profitability.  The Coaching Habit by Michael Bungay Stanier – Tools to lead through better questions and conversations.  PI.AI  Episode #158 w Mike Michalowicz Independence by Design™ 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:  “If you want a team to go ‘all in’ on your business, you have to set them up to thrive without you.” – Mike Michalowicz  “Profit First isn’t just about money—it’s about creating clarity and control over your business.” – Ryan Tansom  “True freedom comes when you stop operating the business and start building it for the future.” – Mike Michalowicz