From Numbers to Strategy: How Finance Shapes Business Success

As the President of Impact CFO and a fractional CFO for family-owned businesses, I had the privilege of joining Brandon Bartneck on the Building Better podcast. During our discussion, we explored the evolving role of finance as a strategic driver, particularly for family-owned businesses. This conversation highlighted actionable steps businesses can take to ensure long-term sustainability and growth.

I wanted to share key takeaways and insights from that conversation, but I encourage you to check out the podcast here –  it’s packed with strategies to help your business thrive.

The Shift: Finance as a Strategic Partner

Gone are the days when finance was just about balancing the books. Today, finance plays a pivotal role in business strategy, helping companies adapt, grow, and prepare for the future. On the podcast, we discussed how finance leaders can provide clarity and direction through:

• Cash Flow Forecasting: A 13-week cash flow plan is essential for understanding financial health and planning for challenges. Want help creating one for free? Click HERE for a free spreadsheet and tutorial.
• Business Valuation: Knowing your business's true worth not only prepares you for a potential sale but also highlights areas for improvement.
• Operational Insights: Regularly analyzing margins and profitability across products or services ensures that resources are allocated effectively. 

These tools transform finance from a reactive function into a proactive force for growth.

Challenges Unique to Family-Owned Businesses

You’ll often hear me share that nearly 50% of family-owned businesses fail within two years of the founder’s death—a statistic that underscores the need for proper planning. The common thread? Over-reliance on one person and a lack of strategic foresight.

To address this, we explored several actionable strategies:

• Diversify Your Revenue Streams: Relying on one major client or revenue source makes a business vulnerable. Expanding your client base mitigates this risk.
• Succession Planning: Preparing for leadership transitions—whether within the family or externally—requires years of financial transparency and leadership development. If you’re interested, I offer a free legacy plan, you can learn more here.
• Financial Expertise: Fractional CFOs like myself can provide the strategic oversight needed to navigate growth, transitions, or unexpected challenges.

Preparing for Business Transitions

We also touched on the complexities of transitioning or selling a business. These transitions often require creative solutions and meticulous planning to protect the legacy and value of the business. Key steps include:

1. Clean Financial Records: Buyers need clear and accurate records to assess value and risks.
2. Operational Independence: Your business should be able to thrive without you, making it more attractive to potential buyers or successors.
3. Long-Term Vision: Preparing for a successful transition often requires a roadmap of 5-10 years to optimize performance and groom the next generation of leaders.

Building Better Businesses, One Decision at a Time

It’s important to integrate financial strategy with leadership and vision. Businesses thrive when finance is treated as the backbone of their strategy, but their success ultimately depends on how they adapt and plan for the future.

Finance isn’t just about numbers—it’s about securing your legacy and creating a sustainable foundation for the generations to come.

If you’re a business owner wondering how to future-proof your business, prepare for transitions, or align your financial strategy with your goals, this episode is a must-listen. Check out the full episode of the Building Better podcast here.

Together, we can ensure your business doesn’t just survive but thrives—today, tomorrow, and for years to come.