The Free to Grow CFO Podcast

Welcome to the Ecom Scaling Show, brought to you by Free To Grow CFO and Aplo Group! Join hosts Jon Blair (Founder, Free to Grow CFO) and Dylan Byers (Co-founder, Aplo Group) as we dive into the crucial—yet often missing—link between marketing and finance in DTC e-commerce.In this conversation, Jon Blair and Dylan Byers discuss the essential components of building a financially resilient e-commerce business. They explore the importance of understanding key financial metrics such as gross margin, average order value (AOV), and customer lifetime value (LTV). The discussion emphasizes the need for brands to assess their financial health, manage operating expenses, and develop strategies for customer acquisition while maintaining profitability. The conversation provides insights into how e-commerce businesses can navigate challenges and ensure long-term success. Key Takeaways-Financial resilience isn't about high revenue—it's about having the flexibility to weather volatility.-If your return customer margin can't cover your fixed OpEx, you're building on shaky ground.-The most resilient brands keep fixed costs lean, manage inventory tightly, and avoid overleveraging.00:00 Building Financial Resilience in E-Commerce02:49 Understanding Key Financial Metrics06:05 The Importance of Gross Margin09:05 Strategies for Increasing Average Order Value (AOV)11:57 Leveraging Customer Lifetime Value (LTV)14:57 Managing Risks in Customer Acquisition18:13 The Role of Operating Expenses (OPEX)22:23 Understanding Financial Resilience in E-commerce32:18 Navigating Inventory Management Challenges43:11 Key Takeaways for Building Financial ResilienceFree To Grow CFO: https://freetogrowcfo.com/Aplo Group: https://www.aplogroup.com/Jon Blair on Linkedin: / jonathon-albert-blair Dylan Byers on Linkedin: / dylan-byers-046010149

Episode SummaryIn this mini episode of the Free To Grow CFO podcast, Jon Blair discusses how to effectively organize your Profit and Loss (P&L) statement to maximize insights for Direct-to-Consumer (DTC) brands. He emphasizes the importance of understanding the difference between fixed and variable expenses and how to calculate profit using contribution margin. By reorienting the P&L to focus on contribution margin before and after advertising, businesses can better assess the impact of their advertising spend on profitability. This approach allows for clearer insights into financial performance and helps identify areas for improvement.Key Takeaways:-Not all expenses are made equal; understand fixed vs. variable expenses.-DTC brands need to isolate fixed overhead in their P&L.-Reorient your P&L to focus on contribution margin.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Free to Grow CFO - https://freetogrowcfo.com/

Episode SummaryIn this episode of the Free to Grow CFO podcast, Jon Blair and Kyle Rector discuss the intricacies of debt financing for direct-to-consumer (DTC) brands. They explore how to choose the right debt at the right time, emphasizing the importance of understanding risk boxes, cash flow management, and the evolution of debt products as brands grow. The conversation also highlights the significance of selecting the right lender and the potential economic impacts on lending criteria. Overall, the episode provides valuable insights for founders looking to navigate the complex world of debt financing.Key Takeaways-Understanding risk boxes is crucial for securing appropriate financing.-Maintaining a healthy balance sheet is essential for long-term success.-Lenders bucket your brand based on risk. Knowing which box you're in can help set realistic expectations about terms and availability.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Kyle Rector- https://www.linkedin.com/in/krector/Free to Grow CFO - https://freetogrowcfo.com/BoundlessAI - https://www.getboundless.ai/Transcript ~~~00:00 Introduction to Debt Financing for DTC Brands01:15 Understanding Boundless AI and Its Role02:26 Common Misconceptions About Debt06:09 The Evolution of Debt Products for Growing Brands10:39 Navigating the Transition from MCAs to ABLs13:56 The Importance of Choosing the Right Lender16:54 Planning for Future Debt Needs22:19 The Risks of Over-Leveraging27:07 Understanding Debt Ratios and Financial Health32:19 The Impact of Tariffs on Lending39:06 Conclusion and Resources for Founders

Welcome to the Ecom Scaling Show, brought to you by Free To Grow CFO and Aplo Group! Join hosts Jon Blair (Founder, Free to Grow CFO) and Dylan Byers (Co-founder, Aplo Group) as we dive into the crucial—yet often missing—link between marketing and finance in DTC e-commerce.Key Takeaways-Marketing and finance must collaborate for success.-Understanding financial inputs is crucial for growth marketing.-Data validation helps reduce risks in decision-making.In today's episode:00:00 Introduction to the Podcast and Hosts03:20 The Importance of Marketing and Finance Collaboration06:12 Understanding Contribution Margin and Financial Metrics08:51 Aligning Marketing KPIs with Financial Goals11:26 The Debate on Contribution Margin as a KPI14:11 Exploring ROAS as a North Star Metric17:03 Cash Flow Management in DTC Brands19:43 Strategies for Managing Overstocked Inventory22:27 Final Thoughts and Future TopicsFree To Grow CFO: https://freetogrowcfo.com/Aplo Group: https://www.aplogroup.com/Jon Blair on Linkedin:   / jonathon-albert-blair  Dylan Byers on Linkedin:   / dylan-byers-046010149  

Episode SummaryIn this episode of the Free to Grow CFO podcast, Jon Blair interviews Sean Busch, founder of DadMode and former founder of Puracy. They discuss Sean's entrepreneurial journey, the challenges and successes of scaling bootstrapped brands, and the importance of customer engagement and financial reporting. Sean shares insights on driving repeat purchases, building strong relationships with customers, and the operational challenges faced when scaling a brand. The conversation also touches on the birth of DadMode, a brand focused on household cleaning products for dads, and the value of creating relatable content for their audience.Key Takeaways-Creating uncomfortably close relationships with customers can turn buyers into loyal brand evangelists.-Valuable customer insights often come from doing the unscalable.-Scaling a business without outside capital requires strategic supplier partnerships.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Sean Busch- https://www.linkedin.com/in/seantbusch/Free to Grow CFO - https://freetogrowcfo.com/DadMode - https://godadmode.com/Transcript ~~~00:00 Introduction 01:16 Sean's Early Entrepreneurial Influences04:40 Scaling PureCity: Key Factors for Success10:08 Customer-Centric Strategies for Repeat Purchases13:31 Leveraging Amazon for Brand Growth17:41 Building Uncomfortably Close Customer Relationships23:18 The Soul of Business and Its Impact25:04 Optimizing Product Packaging and Manufacturing Costs29:19 The Birth of Dad Mode: A New Brand for Dads33:57 Creating Engaging Content for Dads37:14 The Importance of Financial Discipline in Scaling41:04 Personal Insights and Future Directions

Episode SummaryIn this episode of the Free to Grow CFO podcast, Jon Blair and Arjun Aggarwal discuss the challenges faced by DTC brands in managing inventory and landed costs amidst current market fluctuations. Arjun shares his journey from finance to founding Mandrel, an AI-powered inventory automation platform. The conversation delves into the importance of accurate inventory valuation, the interdependence of finance and operations, and the differences between ERP and IMS systems. They highlight how Mandrel aims to automate inventory workflows, providing real-time tracking and reporting capabilities to help brands save time and improve their financial health.Key Takeaways-The connection between finance and operations is crucial for accurate inventory management.-Many brands struggle with tracking inventory valuation due to fragmented data sources.-Real-time tracking of inventory helps brands respond to market changes quickly.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Arjun Aggarwal- https://www.linkedin.com/in/arjun-aggarwal-18049436/ Free to Grow CFO - https://freetogrowcfo.com/Mandrel - https://www.mandrel.tech/Transcript ~~~00:00 Introduction 02:52 Arjun's Journey and the Birth of Mandrel06:12 Understanding Landed Costs and Their Importance08:54 The Interdependence of Finance and Operations12:12 Challenges in Inventory Valuation14:55 ERP vs. IMS: Understanding the Differences17:55 The Role of Mandrel in Inventory Automation23:50 The Importance of User Compliance in Inventory Management26:01 Automating Inventory Tracking and Cost Management29:11 Integrating Email and Document Management for Inventory32:38 Building a Comprehensive Inventory Ledger35:59 Understanding Costs and Inventory Movement38:00 Maximizing Efficiency with Mandrel

Episode SummaryROAS and MER might dominate DTC marketing conversations, but they’re not the metrics that actually tell you if your new customers are profitable. In this short, high-impact episode of The Free to Grow CFO Podcast, Jon Blair breaks down the two numbers that matter most for evaluating your acquisition strategy: gross margin dollars per order and CAC (customer acquisition cost)—both expressed in dollars.Learn how to calculate them, why they matter more than ROAS or MER, and how reframing your analysis around these two metrics can drive better decision-making and long-term profitability.Key Takeaways:-ROAS and MER don’t tell you if your new customers are actually profitable.-Reframing acquisition in dollars forces better decisions than just tracking percentage-based metrics.-Profitability comes from improving margin per order or lowering CAC—not just increasing revenue.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Free to Grow CFO - https://freetogrowcfo.com/

Episode SummaryIn this episode of the Free to Grow CFO podcast, Jon Blair and Melissa Cafagna discuss the critical aspects of scaling a DTC brand with a focus on bookkeeping, accounts payable, and inventory management. They explore the challenges brands face in financial management, the importance of accurate financials for capital acquisition, and the common pitfalls in bookkeeping practices. The conversation also delves into the significance of understanding landed costs, the integration of AP with inventory management systems, and the impact of tariffs on DTC brands. A case study highlights how effective profitability analysis can lead to smarter business decisions.Key Takeaways-Integrating AP with inventory management systems improves accuracy.-Accurate financials are crucial for capital acquisition.-Effective financial management can alleviate stress for brand founders.-Landed costs must be tracked accurately to understand true profitability.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Melissa Cafagna- https://www.linkedin.com/in/melissacafagna/ Free to Grow CFO - https://freetogrowcfo.com/Settle - https://www.settle.com/Meet Melissa CafagnaMelissa Cafagna is a passionate advocate for mission-driven brands, known for her customer-focused approach and her role as a 'financing fairy godmother.' With extensive experience in the financial industry, she is dedicated to helping small businesses grow through innovative and personalized financing solutions. While living in Europe for three years, Melissa transitioned from finance and accounting to sales, gaining cultural insights and developing a dynamic empathy that shapes her approach to building relationships. In her free time, she enjoys spending time with her family, exploring Chicago’s beautiful parks and city centers, and immersing herself in hip-hop and R&B music. About Settle Settle is the best way to power up your brand’s cash flow and operations—designed specifically for consumer brands ready to grow. With a unified platform tailored for 'finventory' management, you can seamlessly plan, purchase, manage, and pay for inventory, all in one place. Automate payments, 3-way match purchase orders, and real time accurate landed costs. For businesses that qualify, Settle Working Capital offers founder-friendly financing, so you can Settle now, pay later, and scale confidently. Join brands like Thread Wallets, Truvani, and Olipop to confidently scale for what's next. Learn more about Settle today.Transcript ~~~00:00 Introduction to the Free to Grow CFO Podcast02:03 The Importance of Bookkeeping in Scaling Brands07:58 Challenges in Financial Management for Emerging Brands13:59 Common Bookkeeping Issues Found in Brands19:56 Integrating Inventory Management with Financial Processes26:00 Streamlining Accounts Payable for Better Control27:20 Segregation of Duties in Accounting28:31 Understanding Landed Costs and Inventory Management Systems33:30 The Importance of Accurate Profitability Analysis39:29 Integrating AP with Inventory Management for Better Insights44:00 Navigating Tariffs and Their Impact on DTC Brands48:01 Case Study: Improving Profitability Through Data Analysis

Episode SummaryIn this mini-episode of The Free to Grow CFO Podcast, Jon Blair challenges a common misconception among DTC brand founders: that a profitable, cash-rich brand doesn’t need a CFO. Jon breaks down why these types of brands often need even more strategic financial support—especially if the goal is to build long-term wealth. It’s not just about managing ad spend and inventory. It’s about turning profits into smart capital allocation and sustainable wealth creation—both inside and outside the business.Key Takeaways:-Just because your brand is profitable and sitting on cash doesn’t mean you’re set. It may actually mean you’re flying blind without strategic guidance.-Wealth doesn’t just come from exits. It’s about using your brand’s cash to buy assets—stocks, real estate, maybe even other brands.-Profit is only powerful when it’s used well. A CFO helps you determine how much to reinvest in the business vs. how much to pull out to diversify your wealth.Episode LinksJon Blair - https://www.linkedin.com/in/jonathon-albert-blair/Free to Grow CFO - https://freetogrowcfo.com/

In this engaging discussion, Izzy Rosenzweig, Founder and CEO of Portless, shares insights on the evolving landscape of cross-border e-commerce. He highlights the significance of the Section 321 exemption and the challenges brands face with new import tax regulations. Izzy discusses strategies for maintaining cash flow and optimizing operations amidst changing tariffs, emphasizing the importance of adapting to global markets. He also delves into the role of trade lawyers and regulatory compliance, offering practical advice for brands looking to thrive in a competitive environment.