In this episode of Mastering eCommerce Marketing, host Eitan Koter talks with Matt Putra, a Fractional CFO and founder of Eightx.

Matt helps eCommerce and CPG businesses making between $5 and $100 million scale profitably and sustainably. His main focus is helping companies simplify finances and manage their cash flow clearly.

Matt explains the critical difference between profit and cash flow, noting why having money in the bank is often more important than simply showing profits on paper.

He highlights common mistakes businesses make, especially holding onto too much inventory. Matt points out how excess inventory quietly drains cash, limiting opportunities for growth.

Matt also shares easy-to-follow advice on cash flow forecasting, emphasizing the value of regular financial check-ins. He believes staying financially healthy comes down to asking simple questions consistently, paying attention to key numbers, and adjusting quickly.

Eitan and Matt discuss the importance of operational efficiency. Matt stresses that in today’s market, being great at the basics is essential. He suggests businesses start experimenting with top-of-funnel marketing activities to reduce customer acquisition costs, even if results aren't instantly measurable.

Throughout the conversation, Matt offers practical tips that any business owner can immediately implement. His approach makes finances straightforward and manageable, even if numbers aren't your strongest suit.

This episode is perfect for founders who want a clear understanding of their company's financial health without complicated jargon or stress.

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Guest: Matt Putra, Fractional CFO at Eightx

Matt Putra’s LinkedIn | Eightx

Watch the full Youtube video here:

https://youtu.be/4k03m3Mg0gM

Takeaways:

• Cash flow is crucial for business survival, not just profit.
• Understanding the difference between cash flow and profit is essential.
• E-commerce and CPG companies face unique cash flow challenges.
• Effective cash flow forecasting involves understanding budget drivers.
• A fractional CFO can provide invaluable support for growing businesses.
• Common financial mistakes include poor bookkeeping and over-inventorying.
• Operational excellence is key in a tightening financial environment.
• Top-of-funnel marketing can significantly impact customer acquisition costs.
• Regularly reviewing financials can uncover opportunities for improvement.
• Don't be emotionally attached to underperforming products.

Chapters:

00:00 Introduction to Financial Clarity

03:30 Understanding Cash Flow vs. Profit

06:02 Cash Flow Challenges in E-commerce and CPG

08:47 Best Practices for Cash Flow Forecasting

11:56 The Role of a Fractional CFO

13:22 Common Financial Mistakes in Business

15:10 The Dangers of Over-Inventorying

17:59 Preparing for Growth Amidst Chaos

21:48 Navigating Financial Crises

25:36 When to Hire a Fractional CFO

27:53 Final Thoughts on Marketing and Growth