Hey {{first_name|there}},
This is email 4 of 6 in a series. New here? Start from the beginning:
1. Everyone's talking about AI. Few are using it.
2. My AI disagreed with my EBITDA. It wasn't wrong.
3. The CFO skill nobody admits they're bad at
Back in my banking days, one of my clients doubled his revenue in three years.
From $20 million to $40 million.
He was proud of it. He had every reason to be.
Except he made more money at $20 million than at $40 million.
Three things were happening underneath:
He was buying his growth. New clients signed at much lower rates than the old ones. Gross margin was sinking before anything else hit.
His costing team couldn't price the work. Projects came in with costs nobody had accounted for, and he was locked into them through long-term contracts.
Growth ate his cash. Supporting the new business meant carrying more inventory. He used his operating line far more than planned, and paid interest on all of it.
I told him to slow down and fix profitability first.
He told me I was insane. "There's nothing revenue can't cure."
It's one of the most expensive beliefs in business.
Revenue doesn't cure a margin problem. It scales it.
And it never starts with a decline. It starts with one month that looks good.
Fictional numbers:
Last month: $10M at a 40% contribution margin. $4.0M.
This month: $11M at 34%. $3.74M.
$1 million more in sales. $260,000 less to cover fixed costs.
Was it pricing? Delivery costs? Product mix? Each answer leads to a different decision. Get it wrong, and you approve more spending to grow straight into the problem.
My client didn't see it for three years. A dashboard would have shown him in month one.
Mine connects accounting actuals with operating data, compares them against forecast and flags what doesn't add up.
Each month used to take me at least 15 hours: building the dashboard, working out what happened, writing the action plan and turning it into a presentation for management.
Now it takes 1 to 2 hours, depending on the month.
Every business is different, so your number will be too. But the hours I got back weren't the judgment. They were the preparation.
My time now goes to the part that matters: is the explanation right, and what do we do about it?
That's how you scale finance without adding headcount, and walk into the board meeting with the answer instead of a follow-up.
On Wednesday, November 11, at noon Eastern, I'm hosting a free 45-minute live webinar. I'll show you the dashboard I built with AI: what it produces, and how much time it gives back. I'll also explain how AI is billed, and how to keep that bill from surprising you.
P.S. Curious: if AI could take one part of your monthly dashboard off your plate tomorrow, which part would you hand over first? Hit reply. I read every answer.
Disclaimer:
This content is for informational and educational purposes only and should not be construed as financial, legal, or professional advice. Always consult with a qualified advisor before making any business or financial decisions. The author and publisher disclaim any liability for actions taken based on this content.
Talk soon,
