In this episode of
What's Working in Ecommerce, you'll learn to project and improve the actual profit your marketing spend earns for you. Fractional CFO Matt Putra from EightX shares his financial expertise as well as the Net Income calculator he uses with his actual e-commerce clients to increase their profits. In one case, the work Matt did increased net profit by $300,000 in just three weeks, so you're going to want to listen up, for sure! You can find the extremely helpful calculator Matt shows here. We strongly recommend you watch the video on YouTube here for this one. https://www.youtube.com/watch?v=n8muqTneOPI&list=PLNu4cumRdqFX4DNHy7lYhal_q8eIV7p-n&index=62 You can find Matt Putra at: https://www.eightx.co/ https://www.linkedin.com/in/mattputra/
[email protected] For help with paid social, paid search, or email automation, check out our agency here: https://www.caravandigital.com/ Time Stamps 00:00 Intro 00:00:14 Fractional CFO 00:01:45 Financial Planning 00:08:12 Financial Calculator 00:09:23 Blended ROAS 00:10:07 Financial Calculator 00:16:21 Breaking Even 00:19:01 Cost of Goods Sold and Variable Expenses 00:23:07 Contribution Margin and Breakeven Sales 00:27:24 Importance of Being Conservative with Fixed Costs 00:28:06 Role of a Fractional CFO 00:28:55 Importance of Financial Planning 00:30:33 Who is a Good Fit for a Fractional CFO
Fractional CFO [00:00:14] Matt Putra explains the role of a fractional CFO for e-commerce companies and how it differs from a full-time CFO.
Financial Planning [00:01:45] Matt discusses the importance of financial planning for e-commerce businesses and how it can impact growth and success.
Financial Calculator [00:08:12] Matt shares a financial calculator and goes through the numbers to demonstrate how it works in analyzing a business's financial data.
Blended ROAS [00:09:23] The importance of blended ROAS as a core number for CFOs to manage cash flow and profit in e-commerce businesses.
Financial Calculator [00:10:07] Explanation of a financial calculator that helps businesses understand the impact of marketing initiatives, efficiencies, and decision-making on net profit.
Breaking Even [00:16:21] Using the financial calculator to determine what it takes for a business to break even, including improving ROAS, cutting overhead, or reducing variable costs.
Cost of Goods Sold and Variable Expenses [00:19:01] Matt Putra explains his method for calculating cost of goods sold and variable expenses, and why it's important to closely monitor these metrics.
Contribution Margin and Breakeven Sales [00:23:07] Matt Putra discusses the importance of contribution margin and how it can impact a company's growth and success. He also explains how to calculate break-even sales.
Importance of Being Conservative with Fixed Costs [00:27:24] Matt Putra emphasizes the importance of being conservative with fixed costs, especially during uncertain economic times. He shares an example of a client who raised a multi-million dollar venture round but was advised to wait on leasing an office space.
Role of a Fractional CFO [00:28:06] Matt Putra explains how he helps clients analyze their financial data and create a plan to mitigate risks and optimize profits.
Importance of Financial Planning [00:28:55] Matt and Igan discuss the importance of financial planning and how it can impact the growth and success of an e-commerce business.
Who is a Good Fit for a Fractional CFO [00:30:33] Matt Putra explains that his services are best suited for e-commerce businesses with revenue between two and eighty million dollars.
