In the present business market, finances and creativity come hand-in-hand, especially when it comes to remote financial management. CFOs need to apply original methods of managing financial teams or getting investment for the company. If you struggle with this, today's guest got you covered.
Ken Kaufman is the Chief Financial Officer at Community Dental Partners, led by a mixed team of dental and business veterans working together to solve the needs of today’s modern dental professionals. CDP was designed for dentists by dentists who recognized the need to partner with responsible business experts.
In this episode, we discuss opportunities in high-growing companies, how to efficiently manage a remote finance team, tips on finding the best financial talent, and maintenance versus growth OPEX amongst other interesting topics.
Opportunities in High-Growing Companies
Ken states that in a high-growth company, opportunities abound. You get this exhilarating momentum from knowing that you're discovering and learning something new. Furthermore, there's this ongoing cause of constantly trying to figure out how to maximize the value you can bring to the customers.
''There's something about growth. When you're in high-growth companies and when you're growth-minded. Those new opportunities, the opportunity to maybe jump to a different industry or jump to a different set of challenges. That's always motivated me in what I've chosen to do with my career.''
Dealing With Struggles in Finding Talent - Remote Financial Management
Anticipating the new company's challenges, Ken realized that his FP&A team was underdeveloped and understaffed. The company needed to make several hires and find great talent. So they came with something unique and offered a $3000 referral signing bonus to his circle within LinkedIn.
To make sure you find the best talent, you first need to set up clear expectations of the role. Even so, organizations may struggle with failures. That's the moment when you need to learn from mistakes and adapt to the challenges.
''Great hiring always starts with being massively clear about what you need from the position.''
Running a Remote Finance Team
As a CFO, Ken mainly works remotely. Though it's challenging, the company started hiring offshore, and now it has finance teams covering three continents.
''Borders don't have to be boundaries anymore for us. Why wouldn't we look and consider just finding the best talent wherever they're at and allowing them to work remotely?''
Managing EBITDA and Investing in Growth - All You Need to Know About Remote Finance Management
Growth investments are critical for high-growth companies. But when you're making those investments, they're driving down your EBITDA. To convince lenders to give credit for growth investments and add that back to EBITDA, Ken suggests breaking your company's OPEX into two buckets. One bucket is the maintenance, and the purpose of the maintenance bucket is to put all employee costs, vendor costs, and everything that it would take to run the business. Understanding the difference between maintenance and growth OPEX allows focusing on growth investment and business sustainment.
''We always go through their maintenance versus growth OPEX. And that allows them to continue to update us, and the opportunity for us to continue to understand is that cost used to sustain or maintain the existing business, or is it directed toward growth activities and growth initiatives?''