EP 235: How a CFO Helps You Meet Your Big Vision Goals with Kristi Thiel

Finances are the ultimate two-sided coin of business — on one side, it’s the lifeblood that can lead to quite a bit of entrepreneurial pressure. 

And on the other side, having a financially successful business is one of the keys to relieving all the pressure and unlocking true freedom, both in time and ability to do what we want not just with our business trajectory, but our lives. 

And it’s this aspect of business finances that my guest, Kristi Thiel, and I are discussing in this episode of Spa Marketing Made Easy. 

With more than 15 years and a unique blend of accounting and financial advisory experience under her belt, Kristi’s role as an Outsourced CFO is to help companies implement a strategy that ensures growth and profitability on track to achieving the long-term financial success they envision in both business and life. 

Tune in as we talk about Kristi’s approach to finances and how a CFO can function as a collaborative partner in your business to ensure that all your financial bases are covered. 

In this episode, we discuss: 

•  How a CFO differs from a bookkeeper and CPA, and what they uniquely can do for a business in regards to finances 
• What CFOs do and how they work to help you achieve your goals 
• How to know when it’s the right time to consider bringing on a CFO and what pieces you need to have in place to onboard one effectively 
• Kristi’s unique approach and on boarding process that helps her client get a grasp of how their financials look today where they’ll move in the future to support both personal and professional goals

References Mentioned in Episode #235: How a CFO Helps You Meet Your Big Vision Goals with Kristi Thiel

• Learn more about Kristi and her work as an Outsourced CFO via her website ktcpallc.com
• Connect with Kristi on Instagram, Facebook and LinkedIn 
• To keep the conversation going, ask questions, and connect with other like-minded aestheticians building thriving careers, click here to join the free Spa Marketing Made Easy Podcast community.  

As a thank you for being a loyal listener to the Spa Marketing Made Easy podcast and for helping us to reach more aestheticians working on growing their businesses and creating a life they love, we have created a free resource portal just for you! 

It’s totally free to join, and for every 25 reviews we get on iTunes, we’ll add a new training video, PDF, tracker, or other high-value resource to help you grow your aesthetic business!

If you have yet to leave a review, click here to leave one on iTunes, and click here to access the free resources already unlocked! 

Episode Transcript

00:00

You're listening to the Spa Marketing Made Easy Podcast where we share simple, proven strategies just for spa industry professionals to help you get more clients in the door so that you can create a life you love. I'm your host, Daniela Woerner licensed aesthetician and spa marketing strategist.

00:22

Hello My dears, Daniela here and welcome to another episode of the Spa Marketing Made Easy Podcast. Now when I ask our students to create an org chart for the vision of their company in the next year, I'm always surprised at how many leave off the finance department. Now, I know that you may not have a finance team on site at your spa. But they are an incredibly important piece of your business structure, a division of your company that can really make or break you. That's why I was really excited to talk to Kristi Thiel about the role of your financial team. What should they be doing? What should you be talking to them about?

01:03

So we got into the difference between a bookkeeper a CPA and a CFO. So a CPA is a certified public accountant. A CFO is a chief financial officer. So really interesting to look at what each of these roles do and how they can help and support your business. Now, remember that in creating your business, you need to begin with the end in mind. What is it that you're wanting to create for yourself? So if you're wanting to create a multi six, seven, or even an eight figure company, you've got to start acting like a multi six, seven or eight figure business owner today. And how do they act? Well, I can tell you for sure that they have a financial team that they are consulting with that they're being guided by, that's helping them make the right decisions as they grow into the next level. 

01:59

Now, I'm going to go ahead and do a quick read of Kristi's bio and then we can jump right in to the good stuff. With more than 15 years and a unique blend of accounting and financial advisory experience. Kristi's role as an outsourced CFO is to create and help companies implement a strategy that ensures growth and profitability on track to achieving the long term financial success they envision. She becomes a collaborative partner in your business to ensure that your financial bases are covered. So go ahead and listen and take some notes and start to think about what your financial team looks like in your company. Alright, let's go ahead and play that interview. 

02:42

All right, Kristi, welcome to the Spa Marketing Made Easy Podcast, I am so excited to have you on to have this conversation we met online. I always think that that's funny, we met on LinkedIn reached out you sent a really, really nice post a lot of times like on LinkedIn, they have those spammy messages and yours was really something about it just caught my attention. And and we had a great conversation about what is a topic that I think is so important in spa, and that's for those spa owners that are at that like 200 - 300k and revenue. And they're wanting to get to a million. There's this missing piece that nobody really talks about. And that is the relationship that you have with your CPA, your CFO, your your finance team in general. And that's what you do. That's what you are, that is your world. And so I felt like bringing you on to really shine some light on that topic was going to be just so so valuable. 

03:53

Thank you. Thanks for having me. 

03:55

Yeah. So you know, we did your bio in the intro, but can you just give like the in a nutshell version of how you got to where what you're doing today?

04:07

Yeah, so I have over 15 years of experience, not just an accounting, but also, I'm a former financial statement, auditor, I've done tax, I've done consulting, and I've also been on the private side. And I took what I really liked about all of those things, and decided that I wanted to serve companies in a greater way. And in order to do that I needed to provide services in a different way. We frequently see companies that interact with their CPA once a year or on a quarterly basis when they feel that they need something but CPAs have the power by having the exposure to all of those numbers and that information and exposure to a greater number of companies to see what works well. And so in this role, I have The ability to jump in and help was so much more than just producing financial statements or filing tax returns. So really, the purpose of it is to help provide some clarity, and align financial goals with the strategic plan and the vision of the company, and really help find a path forward so that business owners can get where they want to go.

05:25

So for listeners who are not clear on what these different roles in the financial piece are, can you explain the difference between a bookkeeper, a CPA and a CFO?

05:41

Okay, so a bookkeeper is making sure that the books and records are in order, everything that has happened in the past is recorded, it's reported, and you have that information to use a CPA can help with anything from audits to tax preparation. CPAs also do consulting. But a CFO really is responsible for the financial management and the strategy of the company. So they are more involved in the company and the operations, financing and investing decisions going forward.

06:19

Yeah, and this is something that that we learned, you know, as we were growing as a company, it's like, so often as the business owner, like the first goal is just getting to 100,000. Right? It's like everyone wants to get there. And then you get into those multi six figures. And you're like, Okay, yes. And then the next hurdle is a million. But there's so many, like, Are you an LLC? Are you filing as an S corp? Right, like structure changes that can that's a question you would talk with a CFO or CPA about, right? 

06:53

Yes. 

06:54

How? What is your strategy bringing on employees? What is your strategy and investing? What is your strategy, like? All of these types of things that are kind of like, you know, you're no longer running a hobby business like this is really being developed into a company that you are creating, rather than just creating a job for yourself? And how do you structure that? And I feel like so often in the world of business, we talk about the marketing and the social and all the like, sexy parts of it, right? But the, the part that's really going to save you thousands of dollars or push you over that hurdle is understanding and having a clear strategy for taxes for paying yourself or under for understanding long term growth of the company, because no one wants to get hit with a huge tax bill without being prepared for it, right? 

07:53

Yes, definitely. So in a spa, you have a multitude of things that you're doing as a business owner or managing operations. And there's so there's a combination of so many different things that can bring you to the right place. But getting all of those pieces in order. There are so many details involved in that. And so what a CFO can do is really take a step back from those tiny details, and get it to the high level and help guide you in that direction.

08:27

I know for us over the pandemic, and our like whole finance team. They were the ones that were like, okay, here's what the ideal is, here's what the PPP is, here's what you know, they were giving us all the information and digesting, like, okay, the Cares Act came out. And this is what this means, right? Like, if you don't have a CPA or a CFO that's helping guide you through those pieces. That can be so challenging, because you're just trying to like, how am I going to keep my business afloat with all of this that's going on, right? So it allows you to, okay, I don't have to figure that piece out. My finance team can tell me how you qualify for this, or here's your options. Here's what we suggest or don't suggest, here's the pros and cons, right? Like looking at all of those pieces, which I think especially in the past year and a half, right, it's just been so incredibly important, important to understand what all of that is.

09:35

Yes, and CPAs, and especially CFOs. They have exposure and they have the resources at their fingertips, to know what's going on and what's available to be used and how to get there. There's so much in the laws, regulations and the rules for obtaining different sources for funding and so to look into that you really need someone who understands the lingo and Instead of trying to read the whole thing yourself and get to that point.

10:05

So, at what point in business, does it make financial sense to bring someone on that is a CFO?

10:15

So I think you've reached the point where you know, what you want your company to look like, and you've started operating. And you've already got your accounting is in order, and you're able to analyze your financial performance. But you really need that strategic step forward, on the financial side.

10:37

So you know, what you want your business to look like, like, you have your 5, 10, 20, you have your exit strategy, right? You know, like, when the business is fully realized? What is it going to look like? Am I going to sell? Am I going to create a, a company where I just truly become an owner and not an operator. You know, all of these pieces we need to think about? And so often I see spa owners, especially if they're solo, there is no, they're just going day to day, right? They're not thinking about what is the long term growth of the company. But yeah, to hire a CFO, and give them the direction of the goals that you want them to achieve? You've got to know like, what you're going for? When do you want to retire? When do you want to? You know, are you going to hire a team? Are you going to sell, right? Because I imagine your financial statements should be done with all of that in mind.

11:40

Yes, definitely. And it also depends on do you have a plan for succession? Do you have a plan to sell. But also, I think a lot of owners, they have that dream and vision in mind before they start. And then they get into operations. And some of that gets forgotten because they get in the routine. And it's tough to break that mold or start hiring staff when you're not quite sure how to go about doing it. So there's definitely some guidance that's needed there. But it's really that next step, once you've reached multiple, six figures, and you're wanting to scale and grow, and you have different services in mind that you've considered offering that you think would complement everything else you do. So well. And so you need that guidance financially on how to get there.

12:36

Does the CFO, you know, one of the questions that has been asked regularly with our Growth Factor clients now who are doing kind of what is my exit strategy? What does that look like? And, and so much of it, especially as a small business owner, you know, a lot of these businesses are single member LLCs, or, you know, LLC filing as an S Corp. And your personal finances are very much involved in that. So does the CFO of your company, you know, if you hire a CFO, are they looking at your entire financial health and well being including? You know, like the finances of your spouse, when you are wanting to retire? If you have children? If you're saving for college? Is that a CFO? Or is that financial advisor? Like how do you piece all of those things together to set the goals for your company based on what you're wanting to create for yourself?

13:41

Right, so a CFO in a traditional sense, working directly for a company, they're focused on that company, some outsource CFOs, myself, in particular, we have a big discussion upfront about personal goals, and where they are and where they want to be personally, because it all flows into the business. And what you decide to do financially affects your personal side as well. And so there's an element of Yes, it's easy to make a decision based on immediate bottom line impact. But you also have to consider what that means for your life and does it fit with everything that you want. So I definitely include that as part of the process.

14:28

So walk me through what your onboarding process is like when you bring on a small business.

14:36

Yes, so I like to have an initial consultation. I like to make sure that we're a good fit. You need someone that you can work with and trust to help you in that strategic direction. And you need to be fully aligned on where things are going to go and how you're going to commit to the process to make things happen and reach those goals. Maybe adjust as needed as time goes by the last year and a half has taught us how to adapt to change quickly. So, you know, it's, for me, it's about finding a good fit to, and you want someone who's going to meet all of the needs that you have in mind for this type of service. And so what I do is first consultation, make sure we're a good fit. And I also make sure that, you know, the spa owner is fully committed to the process, open to making changes to make things happen, open to potential investments in technology. And just being part of that process, and committing to meeting every month, so that we can work through things and know where things are going and where we stand and what we've done well, and what needs to improve. And then we read me on a regular basis. But there's also ongoing support in between, they can pick up the phone or send me an email. So we can talk through things. Some clients prefer like a Google Sheet with objectives and tasks so that we can update each other regularly, without having to interrupt the day to day. So what I love about what I do is that is truly different for every client, I like to really customize based on the needs of my client. So usually, in that initial consultation, I can identify three to four key areas that we can really work on that would help reach those financial goals. So that's kind of what drives how we set up what we're doing.

16:46

That's great. And this is, as I'm listening to you talk, I'm just thinking like, this is the definition of working on your business, you know, when everyone talks about like working on your business, rather than in it, this is like one of the key pieces, you've got marketing, PR fulfillment, and finance as really like the core areas of any company. And finance is something that, you know, it's not uncommon for me to be talking with an aesthetician and then to have no idea what they're even what their revenue is in October. And it's like they're pulling their stuff together for taxes. And it's just one of those things that, you know, numbers can be scary for a lot of people. But it is it gives you so much power and so much peace of mind to really understand and own that part of your business. And shift the shift the the story or block or whatever it is around money that I'm not good with money, or I don't like numbers or whatever it is like when you pay attention to it and learn and grow. It shifts that story. And that shifts so many other things in just your day to day operations of how you're running and operating your business.

18:08

Yes, definitely. And, you know, part of the process is reverse engineering what you're doing. So with business owners, I often get them to shift their thinking on expenses. What's the benefit of that? Are you making a return on that? And so, you know, you talk about wanting to have a certain amount of profit, well, how do we get there, we have an idea where our sales are going to go based on history and trends, and you know, seasonality during the year. And so you have that, and you know how much you want your profit to be. And so then expenses, it really becomes going through those big expenses. And is this benefiting me? Or is it something I can live without?

18:56

Right isn't an investment that you're actually getting an ROI on? or... 

19:01

Yes.

19:02

Yeah, that's huge. That's for sure. 

19:05

Yeah. 

19:06

Okay. So any, what advice in wrapping up? What would you What advice would you give to an aesthetician who's kind of on the fence and saying, Is this an expense to hire a CFO? Right? Is that an expense? Am I in that space? What benefit Am I going to get? Like? What would you say to that person?

19:29

Yes. So the intent of my process is to get a significant return and help give you that clarity so that you know where to go forward. And so, you know, if if we're not getting a return, there's a problem that needs to be fixed right away. And usually, if there's a little hiccup in the process, it's because there hasn't been the full commitment to tracking and meeting those goals. Anytime you skip a monthly meeting or you know you're not tracking your goals, you're kind of letting things slide a little bit. So the point is when we have set meetings every month, there's accountability there. When there's tracking of goals, there's accountability, to make sure that things are happening.

20:20

Love that. Perfect. So where can people find you follow you stay in touch with you? 

20:25

Yes. So I have my own website. I'm listed as Katie CPA LLC. And I'm also on LinkedIn, Facebook, and Instagram.

20:37

Perfect. Well, we will include all of those links. I encourage you spa owners to check Kristi out, do some research, you know, look into your finances, ask yourself, Am I giving my finances the attention that they need that they deserve? to really take me to the next level, because that is such an important piece in your company. So if you want to keep this conversation going, please head on over to the Spa Marketing Made Easy Facebook group we're going to we talked about all kinds of good stuff in there, around structure, around finance, around sales, all of these cases, head on over in the group tag us if you have any questions and we'll catch you on the next episode. 

21:25

As always, if you want to keep the conversation going, I want you to head on over to the Spa Marketing Made Easy Facebook group. The number one free resource out there for aestheticians focused on business building. We've got weekly marketing tips, a monthly goal setting and planning session, monthly aesthetician business book club, plus a community of thousands of aestheticians committed to business building in the spa industry. I'll see you there.