“At the end of the day, if you’re running a business, it’s about being efficient at making money...and making more money than you spend, or your business won’t survive.”

Adam Rundle (3:17-3:25)

Accounting is a cornerstone in any successful business. But entrepreneurs get caught up in implementing systems that don’t take into account their financial impacts. When you understand the three key leadership roles your business needs, you achieve the four outcomes that help you make high-level decisions.

3 Primary Leadership Roles in Business

Every business must fulfill three roles to make decisions that consistently move them forward. This is true for solopreneurs, small and large businesses, and everything in between.

1. Chief Executive Officer (CEO)
2. Chief Operating Officer (COO)
3. Chief Financial Officer (CFO)

“The middle point where the roles of the CEO, COO, and CFO intersect is where you  have the highest level of clarity of what’s actually happening in your business.” - Adam Rundle (6:55-7:03)

The CEO is the person at the front of the business directing its vision and strategy. They determine the direction you’ll take moving forward.

The COO focuses on day-to-day operations such as managing all moving parts and making sure that whatever is needed to achieve the vision is being done.

The CFO is in charge of the money. They combine strategy and operations to create a financial picture of past, present, and future business growth.

Where You Should Make Your High-Level Decisions

There’s a middle point where the roles of the CEO, COO, and CFO intersect. This is where you need to make decisions around marketing campaigns, pricing, labor, and other high-level decisions that filter down to more nuanced areas of your organization.

The middle point is where you have the most clarity about what’s actually happening, and you can create a vision that meets operational requirements and makes financial sense.

“The CEO, COO, and CFO are the three primary leadership roles in any business. Whether you’re a solopreneur or have people in these roles, every business needs to fulfill these functions to move forward.”

- Adam Rundle (1:33-1:56)

Accounting is a Fundamental Part of All Business Decisions

As the CEO, it’s your job to identify the role your CFO plays and how it supports your business. Create the space in your organization where you can sit down with your COO and CFO to focus on the decisions that take your business where it needs to go.

If you’re a solopreneur, consider all three functions in every decision you make. There are four specific outcomes you want to achieve with this process:

1. How are you doing right now?

The CFO’s role gives you a clear and accurate picture of what’s happening financially in your business. Are you in line with your financial projections? Do you have statements and balance sheets that let you see how you’re performing?

1. What can you learn?

Is what you’re doing working? What lessons can you learn from your failures and successes? A detailed analysis of the financial aspects of your business identifies your advertising, labor, and other costs. The more detailed your analysis is, the better you’ll understand what it all means.

1. What new goals do you need to set?

What do you want to accomplish moving forward? Should you cut labor costs or increase revenue? The CFO takes your business goals and creates financial models of future performance. This gives you a clear projection of what you can accomplish while establishing a new course to follow.

1. What decisions do you need to make today?

Do you need to modify your ad spending or put new budgets in place? These decisions help you reach the goals you’ve set for your business. Once you’ve gone through this process and achieved these four outcomes, commit to sitting down the following week to assess your performance. Did you make the necessary changes? What results did you accomplish?

Go through the same process each week to establish new goals and action steps to take. Moving your business forward requires the three leadership roles of the CEO, COO, and CFO. Although there are other areas of your business you’ll need to manage, these three fundamental elements are the key to long-term growth and success in your industry.

How to get involved
If you would like more information about ABR, and the success businesses have gained through their work with the firm, visit their website.

If you liked this episode, be sure to subscribe and leave a quick review on iTunes. It would mean the world to hear your feedback and we’d love for you to help us spread the word.