SaaS Expert Voices presented by Maxio

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Chris Heaslip, a four-time Founder and Executive Chairman. Randy and Chris talk the importance of unlocking team potential and the critical competencies required for leadership success. Chris shares insights on personal development, emphasizing that taking jobs for learning rather than just for money can significantly shape one's career trajectory. Chris also discusses the unique role of an executive chair, and the necessity of adaptability in leadership, particularly during times of transition, to foster a culture of growth and development. Expert TakeawaysThe importance of learning and developing competencies at every stage of your career.Transitioning from a comfortable career in accounting to a chaotic startup environment requires courage and adaptability.The role of an executive chair is not just oversight but also mentorship and guidance for the CEO.Companies should focus on developing internal talent to align with their unique culture and values.Reading books and sharing insights can significantly impact personal and professional growth.Creating a culture that prioritizes continuous learning leads to better employee retention and satisfaction.Timestamps(00:00) Intro(00:14) Meet Chris: A Journey from CPA to Entrepreneur(00:57) The Transition from Accounting to Tech Entrepreneurship(02:14) Discovering the Challenges of Scaling in Accounting(05:30) Learning and Growing: Chris' Mindset(09:46) The Importance of Competencies in Career Development(26:29) Investing in Your Team: Unlocking Potential(32:13) Understanding the Role of an Executive Chair(41:22) Navigating the Relationship Between CEO and Executive ChairLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Chris Heaslip LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Pete Kazanjy, entrepreneur, author, and early stage GTM expert. Exploring the evolving dynamics of sales in the tech industry, Pete and Randy discuss the current sales landscape and the challenges faced by organizations in adapting to rapid changes. They also discuss the 'Sales Performance Gap,' a phenomenon that refers to the disparity between sales expectations and actual outcomes, and why sales leaders need to recalibrate their strategies for the current market environment. Pete emphasizes the importance of proactive sales management and accountability and argues that the era of unrestrained growth is behind us, with organizations now needing to focus on efficient growth and sustainable practices. Expert Takeaways In today's evolving market, understanding the sales performance gap has become crucial for CEOs and sales leaders.The shift from growth at all costs to efficient growth requires a reevaluation of expectations across the sales organization.Sales management is not just about encouragement; accountability and structured performance management are essential.Establishing clear expectations for customer-facing activities can significantly enhance sales performance outcomes.Social media's influence on sales professionals can create unrealistic expectations, necessitating proactive management.Effective sales management training is key to developing high-performing sales teams in today's market.Timestamps(00:04) Introduction to SaaS Expert Voices(00:12) Meet Pete Kazanjy: Sales Expert and Author(01:19) The Sales Performance Gap Presentation(05:14) Understanding the Current Go-To-Market Reality(12:22) Navigating Changing Assumptions in Sales(37:10) The Importance of Customer-Facing Meetings(36:54) Favorite Metrics and Influencers in SalesLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Pete Kazanjy LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Roee Hartuv, Head of Revenue Architect Practice at Winning by Design. Roee sheds a light on the drastic drop in IPOs from 98 in 2021 to just a handful in the subsequent years, underscoring a trend that has left many private companies in a precarious position. This bottleneck has forced SaaS leaders to reassess their strategies, focusing on sustainability rather than growth at all costs. Hartuv articulates that many companies are now faced with the challenge of maintaining operations amidst declining investment and a tightening market, emphasizing the importance of customer retention and the need for a solid go-to-market strategy.Expert TakeawaysThe SaaS industry is experiencing a significant recession, impacting growth and investment opportunities.Current market conditions have led to a drastic decline in IPOs compared to previous years.SaaS companies must focus on retention and efficiency instead of just new customer acquisition.The transition from startup to scale-up requires a shift from chaos to process and efficiency.Investors are now prioritizing profitability and growth efficiency over rapid growth at all costs.Understanding product-market fit versus go-to-market fit is crucial for scaling successfully.Timestamps(00:00) Introduction to SaaS Trends(00:20) Meet Roee Hartuv: Revenue Architect(01:17) Understanding the SaaS Recession(01:51) Current Market Insights and IPO Trends(09:05) Growth Rates in Today's Market(17:42) Focusing on Retention and Customer Success(29:16) Transitioning from Startup to Scale Up(42:59) Key TakeawaysLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Roee Hartuv LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Dave Woolliscroft, Finance Leader and Big 4 Managing Director. Randy and Dave discuss the key differences between venture capital and private equity, particularly focusing on what it means for companies preparing for a sale to a PE firm. The conversation highlights the importance of understanding the operational changes that occur under PE ownership, emphasizing that companies often experience increased scrutiny and a more rigorous reporting structure. Dave shares insights on what makes a great PE firm and how their approach to growth can differ significantly from that of VCs, especially regarding profitability and operational discipline. Expert Takeaways Understanding the differences between VC and PE is crucial for founders and CEOs.Preparing for a sale to a PE firm requires clear financial data and predictability.Effective go-to-market execution is essential for attracting PE interest and valuation.CFOs must adapt to a more rigorous financial environment under PE ownership.Regular communication with the board helps alleviate concerns and ensures alignment.Pricing strategy plays a significant role in maximizing profitability and growth potential.Timestamps(00:00) Intro(00:15) Meet Dave Wooliscroft(01:24) Understanding VC vs PE(13:26) Preparing for a Sale to PE(24:58) Life Under Private Equity(36:37) Key Advice for CFOs in PE Transactions(40:47) Speed Round: Metrics, Books, and InfluencersLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Dave Woolliscroft LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Tami Reiss, Founder and CEO of The Product Leader Coach. Tami shares how understanding customer needs and creating a compelling vision that aligns with the company's goals, leads to successful product management. Randy and Tami talk about the value of coaching for product leaders and the necessity of collaboration across departments to drive growth and innovation. Her upcoming children's book, 'What Do Product Managers Do?', showcases her passion for demystifying the role of product managers, particularly for aspiring young professionals. QuotesSo first of all, the promise of SaaS is that your product is always going to get better, right? Right. It's why someone's paying for a subscription. So you always have to keep that in mind. So there has to be something you're doing to enhance your product for your current market. Your current users are paying you on a monthly or annual basis, because theoretically you're going to serve them more, and solve more of their problems. -Tami Reiss [24:42]“The product leader has to coach their employees and say ‘You need to set up listening posts with the onboarding team. You need to set up listening posts with the platform team, or whatever else, and emphasize to them that they are also building trust and confidence in the entire product team and the product way of working." -Tami Reiss[33:21]Expert Takeaways Establishing a clear vision and strategy is crucial for product leaders to drive successful outcomes in their organizations.The importance of aligning product management with sales and customer service to meet market demands effectively.Product leaders need to focus on building trust and confidence in their relationships with stakeholders for long-term success.The distinction between product management and project management is essential for effective product strategy execution in a company.Coaching can help product leaders navigate complex organizational dynamics and enhance their decision-making skills.Timestamps(00:00) Meet Tami Reiss: Product Expert(00:56) The Inspiration Behind Tami's Book(02:12) The Importance of Product Management Education(09:09) Establishing a Winning Strategy(09:15) The Role of a Product Leader Coach(19:07) Understanding Product-Market Fit(18:43) Defining Your Kingdom: Market Strategy(21:44) The Need for a North Star Metric(28:39)The Value of Coaching for Product Leaders(35:21) Speed Round: Metrics, Books, and InfluencersLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Tammi Reiss LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Drew Neisser, Founder and CEO of Renegade Marketing. Drew shares his extensive experience and key insights into the dynamic relationship between CEOs and CMOs, especially for early-stage founders. Randy and Drew explore crucial aspects such as hiring strategies for the first CMO, balancing roles between C-suite executives, and how to set up CMOs for success in the evolving SaaS landscape. Drew illustrates how innovative marketing strategies can significantly affect business outcomes and common pitfalls that can lead to CMO failures. Quotes“You need something called a reverse migration strategy. Normally you would take two years to migrate a brand from one place to another. Think about a trade show. You go to a trade show booth and I see a brand, oh look, there's the Microsoft Windows booth, just in case you happen to be a customer. If you're a customer of theirs, you're going to stop. But if they suddenly changed their name to White Wall, you're not going to stop. Those aren't your people. You're not a customer. So you need to be thinking about your customers and their ability to find you at a trade show.” -Drew Neisser [17:45]“There is a real misunderstanding, and this is the mistake I think CMOs make. They go in, new job, and they say, "Oh, it's a brand problem. We need a new website, we need a new logo, we need a new color," and that's all they change. To me, if you understand strategy, if you're changing your strategy, you're changing your product. And say we're doing a brand refresh and we're not changing something about the product, why are you bothering?” -Drew Neisser [37:46]Expert Takeaways Strategic Alignment: Define clear roles and set expectations between CEOs and CMOs to ensure a unified approach toward growth and marketing strategies.Courageous Strategy: Emphasize daring and distinctive strategies in marketing, focusing on differentiation and simplicity.Artful Ideation: Engage employees and cultivate creativity within the marketing efforts to create compelling narratives and pithy brand stories.Execution and Measurement: Implement a scientific method to measure the impact of marketing activities, ensuring actions align with broader business goals.Avoiding Pitfalls: Recognize the top reasons CMOs fail, such as mismatched expectations and not having a cohesive operating system, to navigate and correct these issues proactively.Timestamps(00:00) Building Effective CEO and CMO Relationships(06:01) The Importance of Taking Time for Personal Growth(07:40) The Relationship Between CEOs and CMOs in Business Strategy(13:25) Building Brand Reputation and Navigating Rebranding Challenges(21:22) Renegade Marketing: Courageous, Artful, Thoughtful, Scientific Strategies(25:41) The Power of a One Word Strategy in Branding(27:41) Engaging Employees and Customers to Build a Strong Brand(36:13) Top Reasons CMOs Fail and How to Avoid ThemLinksMaxioUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Matt Tresidder, Co-founder and CEO of Leadr, a software company dedicated to enhancing personal and professional development. He is also the author of the thought-provoking book, "Management is Dead: There's a Better Way." Randy and Matt discuss the evolving landscape of management, exploring why traditional management methods are becoming obsolete in today's hybrid and generationally diverse workplace. Matt also sheds light on the various shifts affecting today's workplace—particularly the challenges of leading hybrid teams and the differing needs of Gen X, Millennials, and Gen Z employees. Quotes"I like the sales analogy of moving from an IC to a manager because I think it's quite binary. People understand the act of selling, the act of managing, but it's apples and oranges. It literally is apples and oranges to say that someone's really good at selling and then say that they're just magically going to be able to teach someone else how to do it. It's not the same thing” -Matt Tresidder [04:08]“NPS is a very quantitative example. So, we have a pulse survey tool built within our platform called Leadr Insights, and it's literally doing what you just did. So, it's sending out a pulse survey anonymously to all your employees every single month. That allows me to stack rank the health of my managers based on what the employees would rate their experience at the company being.” -Matt Tresidder [27:59]Expert Takeaways Management Evolution: The shift from autocratic, top-down leadership to more empowering, developmental approaches.Hybrid Workforce Challenges: Balancing autonomy, freedom, and access to maintain an engaging work environment for both in-office and remote employees.Generational Differences: Understanding and adapting to the varying management styles preferred by Gen X, Millennials, and Gen Z.Importance of Regular One-on-Ones: The critical role of effective one-on-ones in fostering employee engagement and mitigating misunderstandings.Integration of Tech and Services: How Leader's software, paired with tailored services, helps managers develop their teams and drive organizational health.Timestamps(00:15) From Sales to CEO: Matt Tresidder's Journey and Insights(03:03) The Crucial Difference Between Knowledge and Experience in Management(06:09) Challenges of Managing Hybrid Teams and Generational Differences(11:54) Balancing Autonomy and Community in Hybrid Work Environments(17:48) Clarity in Communication Prevents Workplace Misunderstandings(19:45) Transforming Managers into Coaches for Better Employee Development(29:24) Innovative SaaS Models: Integrating Services to Drive Adoption(35:30) Balancing Efficient Growth and Visionary Leadership in Tech Startups(39:41) Understanding Team Dynamics Through Working Genius and InsightsLinksMaxioUpcoming EventsMaxio Institute...

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Sahil Patel, CEO of Spiralyze, a firm specializing in optimizing website conversions through data-driven A/B testing. The conversation kicks off with an exploration of Spiralyze's mission to make websites the most efficient and productive sales tools for B2B SaaS businesses. Patel elaborates on common pitfalls companies encounter when A/B testing, such as relying on anecdotes, running meek tests, and facing operational bottlenecks. Sahil and Randy discuss the importance of utilizing comprehensive data analytics to inform testing processes, mentioning Spiralyze's approach of crawling thousands of web pages to identify effective strategies. Quotes"A/B testing is the best way to continually get your website to perform better, to turn it into that high performing salesperson because if you don't A/B test, you're just doing ideas, hunches. Someone goes, “I heard that if you put the CEO's dog on the home page, you get more people to click." By the way, don't do that. A/B testing as a process is the best way to do it. But what most companies do is they test meek ideas. They do things like button color changes, or they test hunches and impulses." -Sahil Patel [06:52]“Sometimes my clients ask me, "Well, we have three products. Should we show a different product depending on what someone's interested in?" What I tell them is, "You're overthinking it. You actually don't want your audience thinking about what page that is." First of all, I don't actually think they care or remember. Number two, if they're thinking about the image, they're probably not going to convert. What you're looking for is an instinctive emotional response that you're trying to evoke for them. I call it the tinted window effect.” -Sahil Patel [34:00]Expert Takeaways Website as Sales Tool: Understand your website as the most expensive but crucial sales tool, crucial for driving leads and conversions.Show the Product: Highlighting the actual product prominently on the website boosts visitor engagement and conversions significantly.Effective Copywriting: Use short, bold headlines along with the rule of three to convey key messages succinctly.Bold Claims: Make clear, quantifiable, and positive claims to captivate the user's interest immediately.Optimize for Intent: Tailor landing pages and forms to align with user intent, simplifying navigation for high-intent users and minimizing distractions.Timestamps(02:35) The Importance of A/B Testing for Websites(05:52) Common Mistakes in A/B Testing(09:43) Operational Challenges in A/B Testing(12:47) Best Practices: Show Your Product(14:40) The Role of Copywriting(18:00) Bold Claims and Their Impact(20:48) Live Teardown: Maxio Homepage Review(27:16) Demo Request Page Insights(33:12) Asset Download Page RecommendationsLinksMaxioUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, welcomes back Michelle Valentine, Co-founder and CEO of Anrok and a prominent figure in the SaaS industry known for her innovative strategies and effective leadership. Randy and Michelle explore the "Seven Secrets of Success," focusing on delivering results, building winning strategies, and shaping company values. Michelle shares her unique experiences and methodologies, including the concept of "murphyjitsu," a strategic approach to anticipate and mitigate potential failures in business projects. She also shares how creating culture holds people accountable and fosters growth, elaborating on the power of intuition and making space for reflection. QuotesPeople want to work on winning teams, and so results matter. Rallying the team and seeing what you're doing together is really important. Creating a culture that holds people accountable and stretches people for those goals is absolutely the number one thing that a CEO needs to keep their eye on." -Michelle Valentine [02:40]“The best CEOs tend to be right a lot, and the only way to do that is to invest in building your intuition. In our last conversation, you and I talked about how to quantify how confident you are about something. This could be like, "I have low epistemic confidence, I'm medium, I have high epistemic confidence." Then you could even start prescribing a percentage on that. It really is so subjective.” -Michelle Valentine [26:57]Expert Takeaways Outcome-Driven Culture: Driving results and creating a culture that holds people accountable are paramount for a CEO's success.Murphy Jitsu Framework: An innovative approach borrowed from the Center for Applied Rationality, focusing on anticipating and mitigating what could go wrong in strategic plans.Shaping Values and Standards: Building a company's values and standards through a mix of aspirational and actual values, ensuring they evolve as the company grows.Building Intuition: The path to being 'right a lot' as a CEO involves honing one's intuition through curiosity, pattern matching, and continuous learning.Effective Team Dynamics: The importance of transparent communication within executive teams, balancing one-on-one interactions with group problem-solving to enhance decision-making.Timestamps(00:05) Seven Secrets of Success for CEOs(03:35) Applying Murphyjitsu for Effective Risk Management in Business(12:58) Shaping Company Values and Standards for Long-Term Success(21:58) Balancing One-on-Ones and Group Discussions for Effective Leadership(32:51) The Importance of Reflection and Meditation for Problem Solving(35:28) Diagnose Before Deploying Resources for Efficient Strategy and OperationsLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Ray Rike, CEO of Benchmark IT, a company specializing in providing the SaaS industry with comprehensive and contextualized benchmarking data. Randy and Ray discuss the growth trends seen among private B2B SaaS companies, emphasizing how certain market dynamics are influencing growth rates. They further break down the distinction between small companies under $1 million in revenue and their larger counterparts, elucidating intriguing growth patterns and the impact of pricing models on these dynamics. Listen as Randy and Ray examine infrastructure industries, pointing out how investment behaviors and market conditions are shaping which sectors thrive. Quotes“CAC ratio measures your sales and marketing expenses divided by your new ARR, which is new name customer and expansion customer ARR. But then be more granular, and look at your sales and marketing investment expenses allocated to the pursuit of new logos in the ARR. And divide that by the new logo, ARR. What I do with a lot of our customers is I actually build a matrix. " -Ray Rike [13:40]“One of the most illuminating things from the Maxio Institute report was you segmented by fixed rate pricing, that is, traditional subscription pricing and usage based pricing. Now, you did that for small companies, below a million and then above. So below a million, the fixed rate pricing companies were growing. They hit 44% in Q1 and 41% in Q2 of 24. Compare that to usage based pricing companies.” -Ray Rike [23:02]Expert Takeaways Private B2B SaaS Growth: Private B2B SaaS companies are currently experiencing an average annual growth rate of 17%, a significant yet stable rate compared to prior exuberant expectations.Small Business Resurgence: Companies with less than $1 million in annual revenue are seeing robust growth rates of 26% in Q1 and 21% in Q2 of 2024, suggesting a revival in the small business sector.Impact of Pricing Models: Fixed rate pricing is benefiting smaller companies with rapid growth, whereas usage-based pricing drives substantial growth for larger enterprises.Industry Investment Trends: Infrastructure-related industries like cybersecurity, transportation, and healthcare are thriving, in contrast to the slower growth in entertainment and e-commerce sectors.AI Evolution: Investment in AI, particularly foundational models, has increased dramatically, with the trend continuing to shape the SaaS landscape. Timestamps(00:04) Benchmarking SaaS Growth with Data-Driven Insights(05:24) Key Insights from Q2 Maxio Growth Report(11:43) Balancing Growth and Efficiency in Sales and Marketing Investments(19:33) Small Companies See Significant Growth Amid AI Investments(23:02) Usage Based Pricing Versus Fixed Rate Pricing in SaaS Growth(29:54) Impact of Inflation and Funding on B2B Tech Companies(33:45) Investment Trends and Business Models in AI Companies(38:52) Strategies for Scaling Companies and Optimizing Customer Profiles(46:35) Ray Reich on SaaS Wisdom and Learning from Industry ExpertsLinksMaxio

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Paul Barnhurst, an expert in Financial Planning & Analysis (FP&A). Known as the "FP&A Guy," Paul explores the evolution of FP&A over the past two decades, highlighting shifts from back-office reporting functions to becoming strategic partners within organizations. Randy and Paul discuss essential modeling principles and tools that today's FP&A professionals should master, including modern Excel capabilities and the strategic use of AI in forecasting and planning processes. Quotes“FP&A is a lot more than just the reporting and the analysis. That is what I see as FP&A today. I think it's been a gradual shift and it's really accelerated the last few years.” -Paul Barnhurst [09:07]“I think the most mature thing and where we're pricing the most benefit and planning is with machine learning, predictive modeling. Now, when we talk generative AI, I think there are a few areas that are going to be really helpful, where we're seeing the most use right now. I think the number one area is helping with emails, content, brainstorming, writing.” -Paul Barnhurst [31:34]Expert Takeaways Career Shifts and Entrepreneurship: Paul Barnhurst's journey from government procurement to a leading FP&A influencer showcases the importance of being open to opportunities and continuous learning.Evolution of FP&A: The transition from back-office reporting to strategic business partnering has made FP&A a critical function in navigating today's rapidly changing business environment.Technological Advancements: Advances in cloud-based SaaS technologies and the expanded capacity of modern tools like Excel have revolutionized data management and analysis in FP&A.Financial Modeling Best Practices: Effective model design is paramount. Principles such as color coding, structured inputs and outputs, and avoiding hard-coded values ensure reliability and scalability.AI Integration: The role of AI in finance, particularly generative AI and machine learning, is set to make FP&A both more strategic and technically involved, allowing for more sophisticated decision-making processes.Timestamps(00:04) Navigating Career Shifts and Embracing Opportunities in FP&A(06:54) The Evolution of FP and A from Reporting to Strategic Partner(10:30) The Evolution of Data Analysis and AI in Finance(17:08) Top Financial Modeling Practices and Common Pitfalls(19:04) Challenges and Trust in Building Financial Models for Tech Startups(27:13) The Role of AI and Machine Learning in Finance(36:15) Key Metrics and Influences in SaaS Business Growth(38:23) Influential Figures in Finance, AI, and Financial ModelingLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton...

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Clayton Whitfield, Co-founder of SaaSOptics, a company that revolutionized financial operations for SaaS businesses by addressing critical gaps in their finance and operational systems. Clayton discusses the evolving roles within the office of the CFO, particularly focusing on critical SaaS metrics like revenue recognition, customer churn, and the composition of revenues. Randy and Clayton also underscore the importance of a finely-tuned work environment that facilitates a balance between front-office growth and back-office efficiency. Quotes“When you're trying to run a SaaS business to get your revenues right, get your metrics right and all that kind of stuff, especially a growing SaaS business, if you use all those disconnected tools, it puts a lot of pressure on the finance team and all those disconnected tools as you grow." -Clayton Whitfield [01:03]“The big thing for SaaS in particular is revenue recognition. The revenue recognition rules are just different, right? If you go and mow somebody's lawn and give them an invoice or let them or run their credit card, you basically can take all the revenue right away because you've satisfied all the rules for recognizing that revenue.” -Clayton Whitfield [14:10]Expert Takeaways Foundational Insights on SaaSOptics: Clayton Whitfield elaborates on the journey and challenges that led to the creation of SaaSOptics, providing a historical perspective on solving pressing financial issues for SaaS companies.Critical SaaS Metrics: The episode emphasizes the importance of metrics like revenue recognition, customer churn, LTV to CAC, and the nuances in defining these metrics to accurately manage and scale a SaaS business.Evolution in the Office of the CFO: Clayton discusses how the role of CFOs has evolved with the advent of SaaS-specific financial challenges, and how businesses must balance their investment between front-office growth and back-office efficiency. Strategic Leadership in SaaS: Both guests offer insights into what makes a great CEO, focusing on building effective teams, cultivating a strong culture, and the importance of allocating capital strategically.Timestamps(00:04) The Journey and Success of SaaSOptics(07:13) Transforming SaaS Business with Daily Invoicing Integration(09:28) Navigating SaaS Growth and Financial Maturity(14:10) Key Metrics for Running a Successful SaaS Business(20:42) Understanding and Utilizing Key Business Metrics for Growth(22:55) Understanding Metrics and Segmentation in SaaS Businesses(30:01) Building a High-Integrity, Hardworking Team for Success(34:40) Critical Skills for CEOs: Capital Allocation and Detailed Involvement(38:29) Key Metrics, Essential Reads, and Influential Voices for CEOsLinksMaxioUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Chris Morgan, CEO of LBMC. Randy and Chris highlight the evolving intricacies in financial operations within B2B SaaS companies. They discuss the necessity for moving beyond simple cash accounting to sophisticated systems capable of managing accrual accounting and providing deeper insights into business performance. With a rich background in accounting and finance, Chris talks about the significance of order-to-cash cycles, the dangers of revenue leakage, and the sophisticated demands placed on modern CFOs in today's data-rich business environment.Quotes“I think it's really consistency. Not all businesses are the same. And you really want to have somebody who's going to take the time and really kind of dive in and understand the business and the nuances around it so they can kind of better guide you on how all that should be captured and reported.” -Chris Morgan [19:54]“I think if a client is keeping their customers and growing and they're not losing business, then that's a great business, especially if they're hitting those two really well. And hopefully on the other side of it they're not losing customers, they're growing and adding customers as well from that standpoint.” -Chris Morgan [37:07]Expert Takeaways Implement Robust Accounting Systems: Utilize specialized SaaS tools to manage accounting operations, ensuring accurate and timely financial data.Maintain Consistency in Reporting: Develop and adhere to standardized methods for financial reporting and analysis.Prepare for Growth: Anticipate the inflection points in business growth that require enhanced financial oversight and transition smoothly with prepared systems and personnel.Embrace a Strategic Role: CFOs should evolve beyond the numbers, contributing to strategic business decisions and operational efficiencies.Timestamps(00:04) The Evolution of the CFO Role and LBMC's Growth(02:30) Outsourced Accounting Solutions for Growing Businesses(07:24) Navigating Financial Operations for Early-Stage B2B SaaS Companies(09:42) The Critical Role of Accurate Accounting in Capital Raises(16:12 Complexities of Consumption-Based Models in SaaS Revenue Recognition(28:40) Creating Consistent and Digestible Financial Reports(30:12) Strategic Financial Insights for SaaS Companies(33:38) The Importance of Data Visualization for Modern CFOs(33:44) The Evolution of CFOs from Compliance Officers to Strategic Partners(37:07) The Importance of Gross Retention and Churn in SaaSLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Chris Morgan LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Cory Sanford, Vice President of Culture and Talent at Guidant Financial. Randy and Cory dig into what it takes to be a successful CEO, offering actionable advice for founders, leaders, and aspiring entrepreneurs. Cory's innovative framework for measuring and fostering organizational culture through connection is meticulously detailed. While emphasizing the importance of effective one-on-ones and streamlined performance management, Cory also discusses the need for simplicity and clarity in leadership practices. Quotes“There's not a silver bullet in leadership. The closest thing that I have found though is effective in regular one-on-ones. The most important relationship in the workplace is the direct supervisor relationship. At Guidant we've really invested in making sure we're hiring good people leaders, not just technical experts, but these are people that may actually have less technical expertise. But we know are actually going to be the better people leaders because that relationship is so important.” -Cory Sanford [26:54]“I like to say that a good onboarding is the best recruiting insurance. And so investing in onboarding. When emotions are high, the chance for high leverage and high success is equally high. And so when people are nervous starting a job, we know we can make a big impact by investing there. So we give them a partner in crime. Somebody that they can ask all the questions.” -Cory Sanford [31:48]Expert Takeaways Cultural Stewardship: The CEO should be the chief storyteller, setting clear values and principles exemplified through consistent storytelling and strategic communication.Effective Questioning: As one ascends the organizational hierarchy, the skill set should shift from having answers to asking the right questions, fostering a culture of curiosity and continuous improvement.Connection as Culture: Cory's framework posits that culture is fundamentally about connection – to purpose, leaders, and each other. Measuring and acting upon these connections drive a strong organizational culture.Performance Management: A simplified approach to performance reviews can foster better conversations and relationships, focusing on impactful and actionable feedback.Strategic Engagement: Regular, meaningful engagement throughTimestamps(00:04) Unlocking Potential: HR Strategies for Remote Companies(02:21) Empowering Small Business Owners Through Retirement Fund Financing(06:05) Seven Secrets of Success for CEOs(14:06) The Importance of Asking Good Questions as a CEO(20:21) Measuring and Enhancing Workplace Culture Through Connection(24:56) High Participation in Global Virtual Events at a Hybrid Company(26:44) The Importance of Effective One-on-Ones in Leadership(30:15) Building Connections and Best Practices for Remote Teams(37:16) Balancing Performance Reviews with Budget Constraints and Calibration(43:00) Metrics, Business Books, and InfluencersLinksMaxioUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Alex Shartsis, a seasoned expert in go-to-market strategy and execution for early-stage companies. Alex shares his extensive experience working with startups, highlighting crucial aspects such as hiring the right talent, setting realistic goals, and managing investor expectations. Randy and Alex discuss the significance of hiring competent sales leaders, the importance of revenue operations, and strategies for maintaining honest communication with investors. Listen as Alex shares valuable insights for technical founders navigating the complexities of scaling their businesses from seed to Series A and beyond.Quotes“I think that the thing that people forget is that there are people out there looking for jobs at startups, that are excited about that journey and want to go on that journey from the beginning. If you find the right person with the right mix of skills and who is looking for that, whatever problem you're solving will appeal to them. And you'll be able to recruit them against a Google, or a Facebook, or a Series B, or Series C company, because they want the added responsibility and they want to have a bigger impact than they would at a later stage company.” -Alex Shartsis [09:52]“The way I work with people on it is to really break things into smaller problems and turn it more into an engineering problem. Let's break this into its component parts, run two or three experiments, not all of them, not throw the whole thing out and do it all over again, but figure out what key areas we think are most broken and try and fix those, and maybe that unlocks the system functioning properly again. I mean, I think that's a way to run a business, you're just constantly innovating and making things a little bit better each day.” -Alex Shartsis [32:49]Expert Takeaways Hiring the Right Talent: Emphasize the necessity of engaging with customers firsthand before hiring sales personnel, and ensure the process of hiring is meticulous and involves checking references comprehensively.Set Realistic Goals: Founders should anchor their strategies in achievable goals and revise them based on the data collected over time to maintain credibility.Be Honest and Transparent: Keeping investors in the loop with realistic projections and being transparent about the progress helps build and maintain trust.Avoid Catastrophizing: Break down problems into smaller, manageable tasks rather than perceiving them as insurmountable challenges.Importance of Revenue Operations: Implementing robust revenue operations early on can streamline processes, prevent revenue leakage, and support scalable growth.Timestamps(00:04) Navigating Go-To-Market Strategies for Early-Stage SaaS Companies(03:44) Hiring the Right Salesperson for Early-Stage Startups(07:33) Challenges and Strategies for Hiring Early Stage Sales Talent(12:03) Hiring the Right Salesperson for Early-Stage Companies(18:39) Effective Sales Management and Early Stage Expectations(20:12) Realistic Goal Setting for Early Stage Founders(23:31) Sales Velocity and Its Impact on Business Profiles(24:05) The Importance of Trust and Long-Term Relationships in Venture Capital(30:03) Strategies for Founders to Overcome Challenges and Scale Effectively(35:16) The Importance of Revenue Operations and Automation for Startups(42:00) Importance of CAC Payback for Efficient Growth in Startups(47:18) Influential Entrepreneurs and Their Unique Approaches to Business...

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Bill Hollowsky, VP of Accounting Services at Kruze Consulting. Bill shares his journey through various organizations like KPMG, Oracle, and SunGard. He offers insights into the changing landscape of accounting in the startup world, and the importance of implementing effective technology stacks from QBO to NetSuite, and shares his perspective on the industry's labor shortages. Randy and Bill discuss critical industry trends, such as the cryptocurrency boom and bust, as well as the recent AI surge, and explore what to expect in the near future. Quotes“When we transition new clients to us, we do a KYC and due diligence. We've seen some crazy stuff on the books and balance sheets. So what we'll absolutely do is go back and recast and redo and bring it up to standards. And in some cases, we actually offered to go ahead and amend taxes, so that everything is in sync and matches. ” -Bill Hollowsky [17:32]“As crypto took off and then the Web 3.0 trends happened, of course, it became a really big VC funding frenzy. But boy, folks were really writing checks into the start-ups that were impacting the whole market, which was really cool. So in a way, we had to become crypto and Web 3.0 experts very quickly. And if you looked at the GAAP standards and methodology and the FASB codification, it was very archaic.” -Bill Hollowsky [22:51]Expert Takeaways The necessity for SaaS accounting firms to leverage advanced technology stacks for efficient handling of financial tasks.How Bill's team uses a blend of off-the-shelf tools and custom-built software to meet diverse client needs.Evaluating transition phases where startups move their accounting systems, especially during significant funding rounds.An emphasis on the current talent shortage in the accounting profession and Kruze Consulting's strategic adaptation.The emergent importance of AI and how it is poised to revolutionize workflows in SaaS accounting services.Timestamps(00:04) Agile Methodologies in Accounting and SaaS(03:21) Leveraging Technology for Efficient Accounting in Fast-Growing Firms(06:50) Scaling Startups with Efficient Back Office Technology(11:34) Navigating Accounting Transitions in Growing B2B SaaS Companies(16:03) The Importance of Accurate Accounting in B2B SaaS Acquisitions(18:48) Navigating Startup Challenges Amidst Black Swan Events and Market Shifts(24:29) AI's Impact on Business Efficiency and Workforce Augmentation(29:42) Innovative Hiring Strategies Amidst an Accounting Labor Shortage(38:46) Mentorship and Inclusivity in Remote Work Environments(44:26) Insights on Client Service, Influencers, and Startup PodcastsLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Michelle Valentine, CEO of Anrok. Michelle's multifaceted career journey—from civil engineering at Stanford to coding at Airtable, and her foray into finance and venture capital—sets the stage for a deep dive into the evolving role of the CFO in today's dynamic market. Michelle underscores the role of technology in transforming how CFOs and companies operate, urging leaders to prepare for a paradigm shift where creating software becomes incredibly efficient.Listen as Michelle and Randy explore investor skills, how CFOs can leverage AI, and strategic planning that helps companies thrive amidst the current economic disruptions. Quotes“I think as an investor it's obvious why that's important, how to make good bets, but also for CEOs and CFOs where you're really capital allocators. And figuring out where your company is, where the market is at present, and where you should be allocating your resources in the future is critical.” -Michelle Valentine [05:33]“ One thing that I've learned through looking at a lot of software companies as a VC is that you really have to earn your right to go multi-product. If you truly believe your market is massive, you should go deep and really make sure that you've put a big stake in the ground. You are the standard in that market before you branch out to too many products and spread yourself too thin.” Michelle Valentine [15:19]Expert Takeaways Evolving Product-Market Fit: Product-market fit is a continuous journey, especially crucial for companies aiming to expand into new segments.Strategic Capital Allocation: Effective capital allocation requires clear visibility of the present and flexible mental models to adapt to rapid changes.Role of AI in Finance: CFOs need to understand and integrate AI tools to enhance operations, from automating workflows to strategic market positioning.Importance of Segmentation: Tracking metrics like CAC and net dollar retention by segments can provide deeper insights and efficiency in scaling businesses.Building Effective Teams: Encouraging teams to master AI tools and prompt engineering can significantly enhance productivity and decision-making.Timestamps(00:14) Michelle Valentine's Journey from Civil Engineering to CEO(05:22) Aligning Investor and Executive Strategies Through Probabilistic Thinking(10:23) Optimizing CAC Ratios and Segmentation for B2B SaaS Growth(14:11) Challenges and Strategies in Scaling and Diversifying Product Lines(20:50) The Evolving Role of CFOs in the AI Landscape(29:54) Favorite Metrics, Books, and Influencers in BusinessLinksMaxioRandy Wootton LinkedIn Michelle Valentine LinkedInExcession by Iain M. BanksMoney Stuff with Matt Levine

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Dan Balcauski, Founder and Chief Pricing Officer of Product Tranquility. Randy and Dan explore the nuances of pricing from multiple angles and unravel the intricacies of how to structure effective pricing strategies that align with company objectives to drive both revenue and profitability. Dan emphasizes that successful pricing involves far more than just setting the right price—it's about understanding who you charge and how you charge. They also discuss the emerging impact of AI on pricing models and the importance of sophisticated tools and structures for effective pricing governance. Quotes“Who and how you charge determines your success more than what you charge.” -Dan Balcauski [06:50]“One of the major tools in the private equity playbook is pricing. It's one of the first things that they do. And why is that? It's because it's an untapped lever for growth and everyone's afraid to touch it.” -Dan Balcauski [29:28]Expert Takeaways Importance of Objectives: Align pricing strategies with clear, agreed-upon business goals, whether it's maximizing revenue, profit, or growth.Value Conversations Over Pricing Conversations: Engage customers in discussions about the value your product delivers rather than merely focusing on price points.Pricing Governance: Establish a pricing council to ensure cross-functional buy-in and ongoing adjustment to pricing strategies.AI in Pricing: Use AI to enhance existing capabilities and consider outcome-based pricing models rather than just passing token costs to customers.Iterative Learning: Don't fear experimenting with pricing models; learn and adapt rather than aiming for perfection out of the gate.Timestamps(05:44) Dispelling B2B Pricing Myths and Effective Customer Conversations(14:31) Balancing Revenue and Profit in Pricing Strategies(21:44) The Importance of Strategic Pricing and Cross-Functional Alignment(29:43) Overcoming Fear to Unlock SaaS Growth Potential(32:19) Navigating AI Pricing Strategies and Best Practices(41:13) Insights on Metrics, Books, and Influencers LinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Dan Balcauski LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Nicolas Boucher, an AI Applications in Finance expert. Nicolas shares his rich career trajectory from PwC auditor to corporate finance leader and his eventual transition into AI and finance training. He sheds light on the immense potential of AI in streamlining financial processes and enhancing decision-making. Nicolas and Randy discuss automated invoice processing, real-time financial reporting, and leveraging AI for strategic finance operations. They also explore the transformative impact of AI on business efficiency, explaining its practical applications and the importance of continuous learning for finance professionals. Quotes“We get a lot of data. The problem is we pass through the data to management and then we don't help. There is a science that says that the brain registers and captures an image 60,000 times faster than a word or a figure. So if you really want to… advice for everybody working in finance and wanting to be noticed by management, thinking about the Napoleon map, send the graph that the management will remember and they will. This is what will stick. Not a long email. Not a nice report. The graph will stick.” -Nicolas Boucher [13:53]“We are the champions of Excel, we are the champions of ERP. I believe that we can be that good and be the champions of business in AI. We have a culture of using technology for our job. With AI, there is a lot of data that we can make sense of, and I think finance is ready to use AI.” -Nicolas Boucher [18:26]Expert Takeaways Career Transition Insights: Nicolas' shift from auditing to corporate finance and eventually to AI and finance training, emphasizes the importance of continuous learning and adaptability.AI in Invoice Processing: How AI can drastically reduce manual processing time in invoice handling and expense management.Real-time Financial Reporting: Integrating various sub-ledgers using AI tools like Puzzle IO to produce real-time financial reports and insights, improving business decisions.Practical AI Applications: Asking the right questions to AI models to get the most useful and specific answers, especially in financial analysis.Learning and Networking: Encouraging finance professionals to leverage communities and resources to advance AI adoption.Timestamps(00:12) The Impact of AI on Finance(07:28) From Corporate Finance to Empowering Millions Through Digital Coaching(12:50) The Power of Visual Data Representation in Finance(20:05) Trusting AI Tools for Financial Analysis and Reporting(27:13) AI Enhancing Invoice Processing and Accounts Payable Efficiency(37:02) Key Metrics, Influencers in AI and Finance(43:44) Learning and Entertainment in Effective KeynotesLinksMaxioUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with two SaaS industry veterans, Amber Wendover, Talent Development Expert, and Tom Perry, Founder of Engaged Pursuit. Randy, Tom, and Amber discuss the intricacies of employee engagement and the indispensable role that personal growth plays in organizational success. They take a look at the poignant necessity for CEOs to focus on unlocking their team's potential, referencing Randy's seven secrets of CEO success that are pivotal in steering organizational strategies. Amber and Tom also talk about the "8th" secret - the need to invest in the "people's tribe," empowering the individual contributors and front-line managers who often form the backbone of company operations.Quotes“As a leader, when you ask your team if they need something different, that creates a place where we can all have a discussion and a dialogue. Leaders, state your intentions even if you have an unintentional impact.” -Amber Wendover [25:45]“The best leaders are ones who show up as their true selves, who are authentic, who don't have all the answers, who are inspiring, who can have meaningful conversations, who talk about their weekends, who talk about their families.” -Tom Perry [19:13]Expert Takeaways Recognize the critical transition from individual contributor to manager and the importance of management excellence.Understand the value of fostering a growth culture versus a genius culture in the workplace.Acknowledge the importance of authentic leadership and human connections, especially in the context of remote or hybrid work environments.Remember the influence of personal brand and intention in leadership, contributing to a growth-oriented and learning-supportive environment.Timestamps(01:46) Unlocking Potential: The Seven Secrets of Successful CEOs(04:50) Addressing the Needs of the Forgotten Middle Community(10:26) Identifying the Eighth Secret of CEO Success(14:39) Transforming Corporate Culture: Growth Versus Genius(20:52) Fostering Authentic Leadership and Growth Culture(29:41) Reflecting on Legacy and Building Supportive Leadership Networks(32:14) Interpreting Interactions With Respect and Intention(44:48) Empowering Employee-Driven Learning and DevelopmentLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Amber Wendover LinkedIn Thinking PeopleTom Perry LinkedIn Engaged Pursuit

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Josh Aharonoff, CEO of Mighty Digits and Your CFO Guy, and the Founder of Modelwiz. With a diverse background that includes a start at the Big Four accounting firm KPMG, experience as a startup founder, and strategic finance roles, Josh has carved out a niche as a fractional CFO. Josh emphasizes the importance of having a robust financial model, detailing the four stages of building one. He also highlights the critical differences between traditional accounting roles and the value-add of a fractional CFO, especially for seed and Series A companies. Randy and Josh discuss actionable takeaways that underscore the essence of financial rigor and strategic planning for burgeoning SaaS companies.Quotes“I think the key to having a month-end close completed in a short timeframe is first, real-time classification, categorization, reconciliations, not waiting until the next month when all the data is available to be able to do all of that.” -Josh Aharonoff [14:13]“The financial model should serve as a centralized hub for all the information related to what's happening in the business historically, as well as what you think is going to happen in the future.” -Josh Aharonoff [19:27]Expert Takeaways The Importance of a Robust Financial Model: The four stages of creating a vital financial model, including revenue build, P&L layering, balance sheet integration, and the final stage connecting the chart of accounts to accounting software.Differentiating a Fractional CFO: Unlike traditional accountants, a fractional CFO offers nuanced, strategic financial guidance tailored to the specific growth needs of startups.Financial Operations and Month-End Close: Critical best practices for financial operations, emphasizing real-time classification, standard operating procedures, and efficient month-end close activities.Leveraging Excel for Financial Planning: Modelwiz, an Excel plugin that automates complex financial modeling processes, highlighting the ongoing relevance and power of Excel in financial operations.Engaging Content for Finance Professionals: With Your CFO Guy, Josh has built a significant following by providing daily newsletters on various finance topics, showcasing the value of consistency and engaging content.Timestamps(00:40) From Big Four Accounting to Startup Founder(04:14) Lessons Learned from Entrepreneurial Failures and Consulting Success(13:30) Automating Financial Forecasting with Model Wiz and Excel Integration(23:19) Four Stages of Building a Financial Model(32:44) The Importance of Budget Versus Actuals in Financial Reporting(44:25) The Importance of Gross Margin in SaaS Companies(45:40) Negotiation Strategies and Influencer Insights in SaaS TechLinksMaxioUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Jon Cochrane, Director of the Maxio Institute, to discuss the latest insights from their SaaS Growth Trends report. Randy and Jon delve into the significant findings of the Q1 2024 report, discussing the differences in growth patterns between subscription-based and consumption-based pricing models, as well as the dynamics between companies below and above one million dollars in revenue. Jon also shares a detailed analysis of the strongest and weakest sectors, with notable mentions of the developer and engineering tech space and the transportation and logistics sector. Quotes“There are unique challenges that private markets face. And you typically don't know if things are kind of trending in the right direction or companies are struggling until you kind of get that press release that comes out and takes everybody by surprise.” -Jon Cochrane [02:42]“People who know how to leverage AI are going to outperform people who don't know how to leverage it.” -Jon Cochrane [23:24]Expert Takeaways Growth Uptick: SaaS companies are beginning to see a rebound in growth, with a noticeable improvement from previous quarters, particularly in usage and consumption-driven models.Pricing Models: Companies utilizing consumption-based pricing models are currently outperforming those with annual subscription renewals.Revenue Tiers: A distinct difference in performance exists between companies under and over one million dollars in revenue, with smaller companies experiencing a significant growth spike.Vertical Performance: Developer and engineering tech, and the transportation and logistics sectors have shown substantial growth, while e-commerce and retail lag behind.Market Dynamics: Insights into the dynamics between public and private market trends, indicating a cautious optimism in the industry.Timestamps(04:29) Economic Growth Uptick Amidst Recession Uncertainty(10:00) Revenue Growth Dynamics for Early Stage vs. Established Companies(20:10) Navigating Layoffs and Efficiency in the Tech Sector(22:33) AI Augmentation's Impact on Efficiency and Investment in Marketing(25:03) E-Commerce and Retail Struggle Amid Consumer Price Sensitivity(27:06) Unpacking What Makes Top 10% Companies Stand OutLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Jon Cochrane LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Nathan Latka, CEO of Founderpath. Known for his entrepreneurial spirit, data-driven approach, and thought-provoking insights, Nathan shares his three-phase entrepreneurial journey, starting with his initial foray into the booming social media world and progressing into the creation of the Latka Agency, and then Founderpath. Randy and Nathan discuss the changing landscape of the startup market, the importance of media-led growth, and the role of debt financing in funding software companies. Nathan shares insights from his extensive experience interviewing SaaS CEOs and highlights the need for founders to have a clear vision, build their tribe, and understand the value of inorganic growth. Quotes“You cannot buy attention anymore. Doesn't matter how much money you have. If you are a bootstrapped founder competing against a VC-backed competitor, and they're trying to buy attention, but you're more creative and you have figured out to get the attention of your customers in a creative way, you will win long term.” -Nathan Latka [11:35]“I think there are two kinds of founders. There are founders that sort of read and are consumers of intellect all day long and they're terrible at taking action. I would much rather go for the founder that takes action quickly and learns from a person versus the one that just reads all day.” -Nathan Latka [28:50]Expert Takeaways Successful entrepreneurs often have a deep grasp of industry pain points and innovate based on their experiences, leading to founder-market fit.Debt financing can be a strategic alternative to VC funding for SaaS startups, offering non-dilutive capital that aligns with an entrepreneur's vision for growth.In the current digital landscape, companies must earn attention through creativity and engaging content, rather than solely relying on paid advertising.Savvy founders are turning to inorganic growth and financial engineering, including M&A activities, to scale their businesses and achieve arbitrage opportunities.The role of the CFO in a SaaS company has evolved from purely managing finances to being strategically involved in driving growth and operational efficiency.Timestamps(02:20) Aspiring for Financial Freedom Through Entrepreneurship(06:41) Podcasting as a Long-Term Investment in SaaS Marketing(10:06) Venture Debt and Revenue-Based Financing in Software Deals(15:44) Evolving Strategies for Startup Success and Market Attention(24:09) Distinguishing Founder and CEO Roles in Company Growth(30:42) VC Involvement and Board Dynamics in Startups(38:42) Transitioning CFO Roles and Optimal Hiring Timelines(43:13) Insights on Influencers and Intelligent Investment AnalysisLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Joelle Kaufman, a seasoned B2B SaaS expert. Together, they delve into the intricacies of what makes CEOs successful, the importance of executive team dynamics, and strategies for driving company growth in challenging markets. Joelle Kaufman shares her five foundational components for CEO success, exploring themes like organizational focus, effective communication, driving team motivation, empowering teams through growth opportunities, and the embodiment of company values by leaders. Randy and Joelle also discuss the essential aspects of creating a high-functioning revenue engine and the nuances of handling business curveballs, providing actionable insights into executive decision-making and strategic alignment.Quotes“You must focus the organization with clarity, clarity of vision, of purpose. That will lead to clear missions that support that vision, it will lead to prioritization and most importantly, exclusion of what you are not going to do.” -Joelle Kaufman [02:52]“We're always getting better. We are improving because we're making mistakes and we're learning. That becomes invigorating.” -Joelle Kaufman [44:33]Expert Takeaways CEOs must establish organizational focus, excluding less critical activities to conserve valuable company resources.Communication effectiveness is measured by what listeners understand and how they act on the message.Autonomy is the key motivator for employees, but it requires balance with transparency to avoid surprises.Investing in current team members to improve their skills can be more beneficial than frequently replacing personnel.Effective executive teams recognize curveballs and utilize their collective strengths to make strategic adjustments.Timestamps(02:52) Essential Strategies for Effective CEO Leadership(08:23) Cultivating Leadership and Embracing Failure in Organizations(15:43) Discovering Process Communication Model's Impact on Interactions(23:11) Identifying and Engaging Your Ideal Customer Profile(29:57) Differentiating Your Product in a Competitive Market(36:46) Mastering the Curveball Method in Leadership and Life(43:58) Embracing Mistakes for Continuous Improvement in LeadershipLinksMaxioUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Joelle Kaufman LinkedInProcess CommunicationGTM Flow

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Alex Diaz-Asper, Principal & Founder of Tarsus, and an experienced figure in the financial dimension of SaaS businesses. With an extensive background in private equity and M&A, Alex shares key financial concepts and strategies within the SaaS landscape. Randy and Alex explore the importance of clean financials, the impact of accounting errors on M&A, and navigate through the potential risks and rewards of dealing with client concentration. Delving into the transition from PE to an operational role, Alex also shares insights from the strategic partnership between finance and sales divisions in scaling SaaS businesses. Quotes“If you have large annual upfront invoices you can't assume cash comes in evenly over the twelve months. So if you signed everybody in Q4, you had a great Q4 and Q3, and you're starting to run out of cash and you know, you got it. You see down the horizon. Okay, here comes all the renewals and new cash is coming in. So that's super important from the cash flow models to be able to see those kinds of ebbs and flows of cash flow and having a tool to help you track the renewals.” -Alex Diaz-Asper [23:51]“One thing that has changed a lot is how the CFO is a big part of the collaboration, especially with the sales team, early stage. It is super important that we are partners with each other, the salespeople and the CFO, because we need to know how to manage cash and we need to know new sales as well.” -Alex Diaz-Asper [35:00]Expert Takeaways Clean books and accurate revenue recognition inform go-to-market strategies for SaaS businesses.Managing client concentration: advocating for no more than 20% revenue dependence on a single client.Alex's transition from a PE background to an operational role underscores the importance of building a strong finance team around you.Understanding revenue definitions: the distinction between GAAP revenue and analytical revenue (ARR), both crucial for different stakeholders.Staying on top of technology tools and adopting efficient RevOps strategies for SaaS growth.Timestamps(02:51) Accounting Errors as Deal Breakers in M&A(06:02) Mitigating Risks of Client Concentration in Business(10:03) Evolving Financial Roles in Early Stage Companies(15:41) Decoding Financial Operations and Revenue Recognition(26:30) Efficiency in Finance Through Technology Adoption(32:10) Evolving Roles and Tools for Today's CFOs in B2B SaaS(40:46) Speed Round: Favorite Metrics and InfluencersLinksMAXIOUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Alex Diaz-Asper LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Rob Brown, Co-Founder of Accounting Influencers Roundtable (AIR), and author of the book “Build Your Reputation.” Rob and Randy delves explore the evolving responsibilities of accountants and accounting firms as they navigate an industry that demands a shift from traditional compliance to more strategic advisory roles. Rob touches upon the challenges faced due to an aging profession, technological advancements, and the shift towards value-added services. Listen this week as Rob shares effective strategies for making an impact and selling to accountants, highlighting the significance of establishing authentic partnerships and providing impactful solutions. Quotes“Accountants have to be able to sell an argument, an opinion, an excuse, a statement, a fact. They have to be able to get behind the stats. You're asking much more of an accounting and finance professional now than you ever were. That is why it's rarefied air to get somebody that can do all of those things and this is why we've got a problem.” -Rob Brown [18:54]“There's so many different ways to define an influencer. There's a lot of people that make a lot of noise on social media and they look popular and they have thousands of followers, but their content is lousy. It's lame. It's unoriginal. It's not innovative. They've regurgitated it from other people or they've said the same thing for years. You would look at them and think they're influencers. But I measure influence by relationships rather than noise and social media metrics.” - Rob Brown[48:27]Expert Takeaways The transition from traditional teaching to influencing the accounting industry is underscoring the need for education systems to instill real-life applicable skills.Accounting is an aging profession facing a talent shortage, prompting a shift from compliance-centric roles to advisory and consultative engagements.Technological savviness, commercial acumen, people skills, and selling abilities are identified as key skills for modern accounting professionals to remain relevant.Private equity firms are increasingly investing in accounting firms, seeing potential in streamlining operations and capitalizing on technological efficiencies.Selling to accountants is challenging due to their risk-averse nature; building strategic partnerships and establishing credibility is crucial for success in this market.Timestamps(00:02) Rob Brown intro(06:23) The evolving relationship between accounting firms and startups(11:33) Accountants are reinventing themselves as consultants, coaches, and mentors(19:18) The need for additional certifications to develop business awareness(25:47) AI may not have a rapid impact on the accounting industry(34:05) Three ways to get the attention of accountants(39:41) Understanding the target market(45:15) Focusing on deep work(50:37) The difference between influence and impactLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Jim Delaney, CEO of Traction AI, and Kristian Marquez, President, CEO, and CFO of FinStrat Management. Randy, Jim, and Kristian discuss the significance of pairing robust revenue operations with meticulous financial strategies to foster startup growth. Jim shares his experience at Canvs AI and the intriguing role AI plays in gauging human emotions—a significant leap from traditional social media monitoring tools. He highlights the importance of unifying marketing, sales, and customer success teams with integrated systems to drive performance metrics. Kristian, with his telemedicine and financial expertise, unlocks the mystery behind early-stage fundraising and financial management, guiding founders through the journey from inception to exit by crafting solid financial foundations and leveraging key metrics to fuel growth ambitions.Quotes“If your foundation is built on quicksand, what difference does it make? It's not up to us to set expectations that we're doing a lot of cleanup. We've become very adept at it. We share with our clients, our founders, and our CEOs that we don't like cleanup any more than you guys do. We like standard repeatable processes. It is essential to have a big focus on getting everything right because the old garbage in and garbage out dashboard models are meaningless if the underlying data is wrong.” -Kristian Marquez [46:19]“It's locking down a forecast, something as simple as that. And how well and accurate our forecast really says so much about our level of professionalism because of all the things that are incorporated in that. Especially with earlier stage ventures, where you're thinking about your cash-out date, you're thinking about your cash burn, you're thinking about your current cash position. How much cash is actually coming through business? It's absolutely imperative that it be predictable, reliable, and accurate. We're making funding decisions at board meetings about whether or not we're going to go hire those next two or three sales guys or customer success. So that's the basis of why it's so important.” -Jim Delaney [25:28]Expert Takeaways How emotions can be measured through AIThe vital role of connecting RevOps with FinOps for streamlined operations and informed decision-making, promoting efficient revenue generation.Christian Mark's approach to financial management emphasizes the importance of clarity on founders' ultimate goals, which can inform actionable financial strategies.The significance of establishing product-market fit before scaling operations for startups in the zero to one million ARR phase.Practical recommendations for early-stage SaaS companies on financial operations, including the necessity of professional bookkeeping and system integrity.Timestamps(00:04) Jim Delaney and Krstan Marquez intro(12:06) CMS star ratings, the role of data, and minimizing biases(16:29) “SaaS in a Box”(21:00) Accurate invoicing and revenue recognition(23:56) The challenges of data hygiene(27:15) Identifying the best and worst performing campaigns and channels(43:48) Focusing on customer volume with a billing module in b2b and b2c SaaS companies(50:14) Establishing repeatability and predictability (53:15) CAC (Customer Acquisition Cost) efficiency for go-to-market companiesLinksMAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Anthony Nitsos, Founder and CEO of SaaS Gurus. With a background that intriguingly intertwines medical school education and extensive expertise in finance, Anthony has over 25 years of experience building SaaS financial models. Randy and Anthony discuss principles for building and scaling backend financial systems that can transition from startup to scaleup without creating a "tech pile." By drawing parallels between human anatomy and business functionalities, Anthony emphasizes the significance of a single source of truth in accounting systems and the critical nature of precise and actionable data for organizational leadership. Quotes“If your spine and your core muscles are not strong, the rest of your body hanging off of that isn't going to be. The same thing works in the back office of finance systems. You need to have a rock-solid accounting system that ties to a rock-solid forecasting system that both feed into a KPI system. That is our three-part, financial core.” -Anthony Nitsos [17:00]“One big challenge is creating that one holistic view of the customer and product data that then helps inform not just the statements, but also the operating reports that you're using to run the business. Understanding what's going on with churn, understanding what's going on with retention. There are some exceptions, but you have to go and figure it out, you have to recode it. I think early-stage companies are just scrambling to get product out.” -Randy Wooton [14:39]Expert Takeaways Interconnected Thinking: Addressing root causes and systemic connections in finance and operations in SaaS companies.The Financial Core: A strong, streamlined accounting system tied to a precise KPI system is crucial for providing actionable intelligence to executive teams.Tech Stack vs. Tech Pile: Creating a proper technology stack rather than a disjointed tech pile for seamless data flow and informed decision-making.Cash is King: Accurate cash flow forecasting is paramount and enables CEOs to plan effectively for growth or investment.Building Valuation: The ultimate objective of a CFO in the venture-backed SaaS environment is to assist companies in growing their valuation and preparing for successful exits or investor rounds.Timestamps(01:20) Anthony Nitsos: Applying medical training to problem-solving(08:57) Preventing, detecting, and correcting in-process optimization(13:30) Need for a unified customer list for integrated analysis(19:05) Providing actionable intelligence as a strategic enabler(26:13) The significance of accurate revenue recognition for SaaS companies(34:30) The CFO: “Cash Flow Oracle”(41:06) Projecting cash and analyzing it(47:05) What is the mission of the CFO?LinksMAXIOUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Jeff Epstein, Operating Partner at Bessemer Venture Partners and a distinguished figure in the business and finance sectors. Randy and Jeff discuss the rationale behind budgeting, emphasizing its role in predicting financial futures, resource allocation, motivation, and maintaining fiscal discipline with investor funds. Jeff talks about the recent introduction of the Rule of X by Bessemer Venture Partners, examining the balance between growth and profitability. Jeff also shares pragmatic wisdom from his time at Oracle about setting realistic yet ambitious targets and flourishing within set constraints.Quotes“I think the Rule of X is my favorite metric because it combines revenue, growth and profitability. There is always that tension and that trade off. Should we grow faster and invest more or should we try to get more profitable sooner? And both the CEO and the CFO, that's one of the key resource allocation decisions they make. Another way to think about it is it's short term versus long term. You need to do both. You need to both achieve your goals this year and build the company for the long term. And the Rule of X captures both concepts.” -Jeff Epstein [40:21]“I think the way we think about that, and I'm only going to B2B SaaS guy, is what is the pipeline that has to be built to match the capacity, the sales capacity? So street quota, what is that? So for using an example, like 10 million bucks, marketing sales have to be totally aligned in terms of how many dollars need to be invested in paid surge versus events, et cetera, to create the pipeline, the days to close and the percent win rates that gets you to an 80/80 hit. So I think that's a great rule of thumb.” -Randy Wootton [25:40]Expert Takeaways Rule of X: a nuanced approach to evaluate a company's performance by combining growth with profitability.Budgets serve as a predictive tool, a resource allocation guide, and a motivational scorecard, and are fundamental for fiscal discipline, especially when using investors' money.The importance of aligning annual budgets with a company's strategic three to five-year plan and the careful management of board expectations.50/50 probability when setting revenue targets should ideally lead to aggressive but achievable goals.Executive compensation strategies: balancing individual accountability and sharing in company-wide success.Timestamps(01:28) Jeff's time at Oracle(03:06) Building budgets(06:37) The Rule of X(09:09) The relationship between strategy and budget(16:00) The need for more evidence before relying on AI efficiency improvements(21:00) The 50-50 rule for team performance(29:17) The three-part compensation plan and the alignment of incentives with profit goals.(32:48) Driving incentives and motivation through MBOs and OKRs(36:02) Addressing the tension between annual budgets and actual performanceLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Dawoud Nasraty, Director of Consulting at Armanino. After serving as an accountant at a Big Six firm, Dawood's career trajectory includes roles for a European telecommunications company in Afghanistan and as a CFO. Dawoud and Randy talk about the intricate world of data and decision-making, the technological advancements shaping accounting practices, and lay out the essential lessons and best practices drawn from Dawood's extensive stint as both a consultant and an in-house financial controller. They also discuss the necessity of solid infrastructural investment and why startups often fail without robust financial systems. Quotes“Sound metrics built on sound data. And a lot of companies that get started, not all, but a lot of them, in the beginning, don't pay as much attention to the back office, the finance, and accounting. So it's important, like finance and accounting takes like second or third place, but it's important to establish a solid foundation in that area sooner than later, not too early, but not too late. So the CFO, the CFO needs to encourage investment in the finance function at different stages in the company's life cycle.” -Dawoud Nasraty [18:18]“Someone once said to me that the number one deal killer in M&A is accounting issues and that's because companies haven't done the work, hiring professional consultants, advisors, fractional CFOs to come in and help put the systems in place so the data works and so that they can represent the reports.” -Randy Wootton [11:41]Expert Takeaways Establishing strong finance and accounting foundations early is critical for startups to manage reporting and withstand investor scrutiny effectively.A coordinated system of record is essential for assembling a 'single source of truth' that facilitates accurate decision-making.Overlooking the importance of meticulous financial management and data integrity can lead companies toward a wind-down state.Implementing effective technologies can change the game for SaaS companies in aligning with sales teams and managing cash flows.Learning from failures and 'worst practices' informs better approaches and readiness for future business challenges.Timestamps(00:39) Dawoud's background(06:10) Working with a startup company and setting up accounting systems(12:29) Good data and its role in statistics, finance, and economics(18:08) Sound metrics are built on sound data(24:21) The challenge of transitioning from spreadsheets to a solid tech platform(29:08) The impact of revenue recognition on business metrics(31:11) The need for a thoughtful approach to data managementLinksMAXIOUpcoming EventsMaxio Institute ReportRandy Wootton LinkedInDawoud Nasraty LinkedIn

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with David Nilssen, CEO of DOXA Talent, and a forerunner of revolutionizing how businesses think about and engage with borderless talent. Randy and David take a look at the intricacies of borderless talent acquisition and the attributes that contribute to the success of a CEO in today's ever-evolving SaaS landscape. They discuss how purpose-driven approaches to outsourcing can bring about positive global change and how talent scarcity, remote work, offshoring, and AI integration are altering the business world permanently. David also talks about the value of peer groups and why you need to invest in your tribe. Quotes“The interesting thing about the Guidant business is that we don't make a tremendous amount of money financing businesses. That's what we're known for. But we actually really try to break even, as you're pointing out, on that particular deal. And then we have tax and accounting, payroll and 401K administration on the back end. And so what's really interesting about that business is that we've figured out a way to acquire a customer, profitably acquire a customer and then provide them with other services that really has no acquisition cost associated with it.” -David Nilssen [30:32]“How do we operate at the edge of our own ignorance? How do we keep learning and how do we have enough humility to ask? Because part of the thing I think as a CEO is people look at you for the answer and sometimes you don't know what the answer is. And so you got to admit that you don't know and then go ask questions of everyone you can. Like what you're describing with learning about subscription businesses and how that model works, is going to help you be a better leader and create a better business.” -Randy Wootton [42:22]Expert Takeaways The talent landscape is being reshaped by four key trends: talent scarcity, the rise of remote work, the necessity of offshoring, and AI advancements.Creating a meaningful employee experience is crucial for retention and productivity, particularly in remote work settings.A focus on 'impact' and 'income' helps secure a sustainable career progression for remote employees, generating value for both the employee and employer.Peer groups provide valuable support for personal and professional growth, benefiting not only business leaders but also their interpersonal lives.Today's CEO: curious and open to learning, embraces their role with humility and has a keen sense of responsibility.Timestamps(01:46) Trends in talent scarcity and remote work(04:31) Challenges and advantages of focusing on SMB and mid-market(10:50) Creating a culture of purpose, leadership, team, client, and career(17:05) The value of career pathing and continuous learning for employees(22:19) Tracking the key metrics(30:38) Investing in your tribe: mentor, coach, peer group, and peer advisory(34:56) How to be a CEO: learning and humility(37:26) EO, peer groups, and investing around you(42:16) Success: curiosity, ownership, and a people-first mentalityLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Dave Boyce, a GTM-focused SaaS Advisor, board member for Winning by Design and Forrester, and professor at BYU. Dave shares his unique approach to career decisions, focusing on his need for challenging work that ensures personal growth and impact. This approach has shaped his strategies for businesses to adopt a customer-centric mindset that aligns the product with the user's core needs, creating a successful PLG strategy. Dave and Randy discuss the framework required for a PLG model, identifying the mindset, talent, and timeline necessary for successful adoption, and how go-to-market strategies differ and can coexist in today's business environment.Quotes“There are three really hard pills to swallow. One is mindset, one is talent, and one is timeline. For mindset, I'm going to get in an empathy and generosity mindset where I'm simplifying down and meeting a customer right where she is. I'm going to put metrics into the product so that when she's stumbling or not making her way through, I'll know about that. Because I don't have a human in the room anymore either selling or implementing or coaching or training. That customer is on her own and I need to know when she's having trouble. Empathy, generosity, and metrics help me get that user experience right.” -Dave Boyce [08:33]“PLG introduces this low threshold of payments that are tied to value. I think that creates discipline in your marketing motion. It creates discipline in the way you think about satisfying customers' pain with your claim, the delivery of the capabilities, and how you do fast iteration and improvements. So I think it's this dynamic constraint or mixing of two metaphors, but you've got these constraints in terms of your business model and what you can afford to do, and that makes you super scrappy. So it is in line with innovation, fast fail, rapid turn type motions.” -Randy Wootton [14:47]Expert Takeaways PLG strategies focus on the product selling itself, with immediate value creation for users as opposed to the typical sales involvement in SLG.Go-to-market fit requires a scalable and economical source of customer acquisition, aiming for a customer acquisition cost (CAC) payback period of less than one year.Scaling PLG into a viable business unit involves understanding a growth model dependent on new customer acquisition, renewals, and expansion.The dynamic between PLG and SLG isn't necessarily an 'either-or' scenario; they can and often do function as complementary strategies in a hybrid model.Timestamps(02:03) Guiding principles for career pivots(10:23) Differentiating between bottom-up and top-down approaches in PLG(13:41) Adapting to PLG with a lower ACV(21:29) The false dichotomy between PLG and SLG, the hybrid approach(26:00) Rolling out a PLG business: product-market fit, go-to-market fit, and scale(32:35) Designing applications to get product usage metrics(42:41) Building a flywheel and repeatable processes for PLG(44:47) CAC payback for unit economics and disciplineLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with CJ Gustafson, CFO, and writer behind Mostly Metrics, to discuss the CFO's transformation from a back-office statistician to a front-office strategist, the evolving landscape of SaaS, and the future of finance leadership. Randy and CJ discuss the qualities that distinguish outstanding CFOs, the integration of strategic planning with finance, and the powerful impact of technology on the CFO's role. Listen as CJ shares how CFOs are leveraging technology to streamline processes, enhance decision-making, and drive company performance while balancing risk in the dynamic SaaS sector.Quotes“I think there's a lot of idea generation that's made easier and then being able to link together different areas of work. So there are a lot of cool tools that are coming about that will take, basically information from the front of the house, from customer support, or maybe like a BDR, getting information to then link and say, does this person have an account with us? What's their historical spend? Have we ever talked to them before? It's linking data from different parts of the organization in a way that you can tell a story and then go back and have a conversation with the customer, which I think before would have taken a lot more time.” -CJ Gustafson [40:38]“Being deeply integrated with the CEO and the CRO in terms of monetization strategy, I've talked about that as moving from the back office to the front office. What pricing should we be using, and packaging should we be trying, for which segments, for which products, in which regions? How does it impact our win rates, and how does it impact our churn? That, owning pricing and being able to provide options and being willing to experiment.” -Randy Wootton [08:33]Expert Takeaways Good CFOs are distinguished by their role as chief resource allocator, chief truth-teller, and chief risk officer, balancing strategic investments and maintaining honesty in communication.Modern CFOs must effectively integrate operational and financial data analytics for strategic insight, which demands both a high-level "eagle" perspective and a detail-oriented "mouse" focus.The evolving fintech stack and advancements in AI are enabling finance teams to elevate performance, with tools like Maxio automating revenue reporting and aiding in strategic planning.As technology proliferates within finance functions, a key challenge for CFOs is to ensure that tools are adopted and add value, rather than merely becoming shelfware.AI in finance is less about creating standout performers and more about raising the baseline performance of a team, but vigilance is necessary to avoid data "hallucinations" and inaccuracies.Timestamps(01:26) Qualities that separate good CFOs from great CFOs (06:18) Evolution of the CFO role and moving from back office to front office (13:13) Empowering the management chain and setting up monitoring systems. (22:15) Tailoring metrics for different audiences (26:35) The importance of planning in preparation (30:37) One database or data lake for production, operational, and financial data. (35:10) Improving both people and technology. (42:27) Creating guardrails and running AI models multiple times for accuracy. (44:39) The evolving role of the CFO and embracing augmented intelligenceLinks

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Lihong Hicken, Co-founder and CEO of TheySaid, about her journey in the SaaS industry and her insights on customer retention. Lihong shares her experiences as a sales executive and CRO, and discusses the challenges of preventing churn and driving net retention. Lihong shares how TheySaid is pioneering a way to capture customer sentiment and unearth early indicators of churn, fundamentally shifting how companies interact with their customers for improved retention and revenue growth. Listen as Randy and Lihong discuss strategies and solutions for improving customer retention in the SaaS industry.Quotes“Every decision needs to have one decision maker. You can't have multiple decision-makers. One person needs to own it directly. And then, how do you make decisions? So, if I am a decision-maker, I make the decision. I say I want to try this new initiative. It's new, it's scary, but I want to try it. And if you or someone else wants to challenge my decision, I welcome you to challenge. But if you need to challenge me and make me change my decision, you need to come up with data that is a higher degree than mine.” -Lihong Hicken [32:51]“What we find is best in class companies are north of 90%. The idea is if you're losing 20% of your customers at the beginning of every year, you have to start over and fill that leaky bucket with that amount of revenue just to get back to where your starting point was before you start to layer in new logos. And with the SaaS model, the idea is you get a customer, you keep a customer, customers for life, you hopefully have them. And that's measured in terms of gross retention. And then you were alluding to another metric. Net retention is where you get to grow them. They grow either by buying more seats or they're buying more products or they're division hopping.” -Randy Wootton [10:20]Expert Takeaways Refocusing on Retention: Retaining customers goes beyond simply delighting them; it requires ensuring that they are receiving tangible value.The Reactive Nature of SaaS: The industry's approach to churn involves waiting and responding to declining product usage, which Hicken argues is inherently flawed.Insights Over Usage Metrics: Listening to customers' voices to predict churn risks and growth opportunities before they manifest in usage data.Ownership and Decision-Making: A clear ownership of the gross retention metric and decision-making based on hierarchical data can drive better retention strategies.Voice of the Customer: Implementing journey-based, personalized questions can give companies an edge in uncovering true customer needs and mitigating churn risks.Timestamps(02:50) Lihong's journey to the US and starting in sales(08:38) The leaky bucket problem and the importance of retention (15:49) Customer delight does not equal renewal, value does (22:38) Use automated personalized questions to uncover churn risks (29:25) Decision-making dynamics and the challenges of multiple decision-makers (32:47) Clear decision-making authority and data-driven decision-making (33:23) The four levels of decision-making: customer data, expert views, team experience, and personal experience (34:35) Engaging in data-driven conversations when making decisions (37:27) CCOs need to be proactive and strategic in driving adoption and preventing churn (38:17) Challenges in the CCO role: CCOs often adopt a team-based decision-making process Links

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Tom Hood. Tom shares the myriad of challenges he's faced, victories achieved, and lessons learned throughout his career, which currently has him at the helm of AICPA's digital engagement and growth initiatives. Randy and Tom discuss the CPA Vision Project from 1999, which laid the groundwork for the accounting profession's future vision. This forward-thinking project has lasted well into the present, influencing the 2025 report and shaping the CPA's role in today's rapidly changing technological landscape. Listen this week as they touch on the breadth of opportunities that technology brings to the accounting field, the importance of adaptive learning, and the AICPA's role in upholding professional standards across the globe. Quotes“On top of our technical skills, CPAs and accountants have to have technical accounting skills. We have to have some data literacy and an understanding of technology. So there are deep technical skills that come with an accounting or finance degree. But across the top, we need what we call boundary-crossing competencies. Leadership and sense-making, anticipating and serving evolving needs, and synthesizing critical strategic thinking. The other one would be communication, storytelling, integration, and collaboration. And then you can add agility.” -Tom Hood [39:00]“Now you have access to incredible algorithms at large language. Also, it's generative versus predictive. But second gen and I think you're right, this idea of a fifth industrial revolution, in terms of how we think about engaging with augmented intelligence across every function of my company, we're talking about it, and I think for accounting in particular, it's going to be radically changed, and it's going to bump up against that natural tendency of accountants to not want to embrace technology.” -Randy Wootton [33:38]Expert Takeaways The CPA Vision Project catalyzed the accounting profession's future-oriented transformation, emphasizing the need for continued evolution and adoption of technology.The AICPA, in partnership with CIMA, is driving global standards in accounting, supporting 690,000 members in around 180 countries.The CGMA designation is a strategic credential for accountants that aligns closely with the needs of CFOs to embrace broader business strategy roles.Tom Hood stresses the significance of technologically savvy CFOs, particularly as industries face the dawn of the fifth industrial revolution characterized by generative AI advancements.CPA educational resources and certifications are crucial in preparing finance professionals for their evolving roles in strategy, risk management, and financial leadership.Timestamps(01:31) Importance of building a tribe and networking for professional growth(07:52) Trends that drove the CPA Vision Project and the impact of technology (14:02) Technology can do a lot of the work for us if we let it(19:11) The future CFO role is shifting from back office to front office, focusing on strategy(22:43) CPAs and CGMAs have continuing education requirements to stay current(27:26) The top issues in finance: digital transformation, Gen AI, and new skills(28:30) CFOs leading Gen AI initiatives due to their data knowledge and strategic role(35:16) Educating finance professionals on Gen AI and implementing it within organizations(36:32) Relationship-building and emotional intelligence (39:07) The importance of boundary-crossing competencies in accounting and finance(40:31) Inflection points in a career and the need for different skills at each

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Mark Gandy CEO of G3 CFO and the founder of the Financial Operating System. With an extensive career that started at KPMG, Mark has a background rich in accounting and financial expertise. Randy and Mark discuss the importance of a financial operating system and how it can help businesses get unstuck. Mark shares his insights on the CAMELS system, which stands for capital, asset quality, management, earnings, liquidity planning, and sensitivity to market risk. Listen this week as Randy and Mark explore growth trajectories, operational successes, and future relevance for CFOs in an ever-changing market landscape.Quotes“My definition 25 years ago of a CFO is the same as it is today. It's a financial expert, with deep domain financial expertise, who has a really good grasp on marketing, sales, and operations, who could take over being CEO for one entire year. Sales don't go down, cashflow doesn't go down. The value of the business might even go up. Oh, the culture might even improve a little bit. But after that one year, they're extremely happy to go back to being the CFO because that's what they love doing. That is the definition of a CFO.” -Mark Gandy [30:57]“Unless you have a very clear sense of what's happening with your cash and then your growth model growth engine, that's going to show why you're going to generate more cash, EBITDA as a proxy, over time, VCs may take their bat and go home and say, give me back my cash. I think what we're seeing with a lot of companies that are going out of business, or declining, is that maybe that pressure from the investors is saying, look, it's not clear to me that you have product market fit and that this is going to be a company that's going to be viable for the next two or three years.” -Randy Wootton [28:07]Expert Takeaways Financial Operating System and modified CAMELS Framework: Applying the CAMELS framework (Explore capital, asset quality, management, earnings, liquidity planning, and sensitivity to market risk) to a financial leadership construct.Liquidity Planning: The critical nature of having a clear and actionable understanding of the company's cash flow and forecasts.Role of a CFO: Explored through the historical lens of John Rascob as well as Mark's personal definition, tying in a strategic grasp of marketing, sales, operations, and the capacity to lead as a CEO.Operational Efficiency: Challenges companies face in transitioning from startup to scale-up, particularly in streamlining the 'finding, getting, and doing' process within the business model.Relevance and Sensitivity to Market Risk: The imperative of continuously assessing a company's future relevance and positioning within the market.Timestamps[01:33] Mark discusses the founding of G3 CFO and his background.[04:18] The financial operating system and the use of the camel system in consulting[13:00] The plateau in business growth is due to lacking marketing and sales skills. [16:28] CEOs need to consider the broader context of earnings, including units sold and average transaction size. [19:19] Above the fold: focus on unit economics and what drives the growth engine. [20:08] Below the fold: consider operating cash flow, debt service coverage, and unfunded tax liability. [25:48] The best liquidity model is no liquidity model. [30:17] CEOs should focus on tomorrow's opportunities, not yesterday's problems. [33:27] The CFO: financial expert with

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Brian Bell, Managing Partner of Team Ignite Ventures, about his journey from finance to product management to becoming an investor. Brian highlights how his eclectic background has shaped his investment philosophy. Randy and Brian discuss the importance of customer validation, the impact of AI in the advertising industry, and the patterns of success and failure in early-stage startups. They also explore the trends in fintech and the office of the CFO, including the unbundling and bundling of services and how emerging AI technologies are forging new frontiers for startups and conglomerates alike.Quotes"A lot of investing is pattern recognition. It's just heuristics. It's at bat. It's kind of like a golf swing or a basketball shot, figuring out what startups to work with and investing in them to help them grow.” -Brian Bell [19:13]“I think that idea of going through those stages of getting product market fit, and then the stage that I'm most interested in is that expansion, growth, and then you start to move into the scale. So how do you start to take advantage of the foundation? You have to get to some level of scale.” -Randy Wootton [30:26]Expert Takeaways The transition from traditional careers to emerging tech-focused roles can lead to valuable, diverse experiences that shape successful investment strategies.Understanding customer needs and validating product-market fit is crucial for startups and can significantly influence investment decisions.AI is not only transforming existing industries but is also enabling the creation of novel business models and company structures.The unbundling and re-bundling of services, particularly in fintech, are pivotal trends shaping the landscape and presenting new investment opportunities.The impact of AI on future employment and corporate structures could lead to companies operating with minimal human staff, altering traditional business models.Timestamps[01:20] Brian's journey from finance to product management [04:16] The impact of AI in the first generation at Rocket Fuel [05:44] Lessons learned from Rocket Fuel and investment strategy[07:08] Importance of customer validation and empathy in product development [08:57] The evolution of AI and its impact on industries[14:45] Amazon and Microsoft Culture[19:55] Venture capital and starting Team Ignite [21:39] Pattern recognition involved in investing [23:07] Strategy for investing in startups [23:40] Six questions to ask startups [34:18] Evolution of the office of CFO and the unbundling happening [38:43] AI revolutionizing core capabilities and becoming a central focus [42:46] The singularity and the unimaginable future with advanced AILinksMAXIOUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, welcomes Matthew May, President of Acuity and CEO at Verify IQ, for a deep dive into the evolving world of SaaS finance and the transformative roles of CFOs within technology companies. Randy and Matthew discuss the strategic evolution of the CFO's office and the vital adaptations necessitated by rapidly advancing technologies. Matthew talks about the impacts of technology automation and AI on traditional finance roles and the convergence of CFO and COO responsibilities. Listen this week as Randy and Matthew explore the upward shift from data processing to data strategy and the importance of proactive business planning.Quotes"The office of the CFO has changed in that there's this excuse that there's no talent there, but really what there is. There is just a harder training problem that people haven't solved yet.” -Matthew May [07:15]“So CPQ historically has been something I would say runs up through sales op. It's a CRO decision to buy because it's usually a salesperson that's using it. We found that CFOs are now influencing that decision in a way because they want to make sure that the contract's accurate. They can ingest it from the CRM system into something like a Maxio or have it go into the other financial systems.” -Randy Wootton [21:30]Expert Takeaways CFOs are increasingly taking on COO roles as finance functions automate and require more strategic focus.Content creation success hinges on consistency and authenticity; an essential lesson for finance professionals considering digital channels for their messaging.Emerging CFOs find themselves needing to understand the forward-looking aspects of the business, such as weekly operating metrics, rather than focusing solely on traditional financial reports.Global staffing and training present opportunities and challenges for modern CFOs, underlining the international expansion of talent acquisition.Utilizing employee churn as a critical metric, reflecting company stability and the overall health of its operations.Timestamps[02:20] Publishing content: consistency and authenticity[03:42] Evolution of the role of the CFO in the tech space [05:29] Key technologies enabling CFOs to step into the COO role [06:09] Automation of general ledgers and challenges with data diversity[09:16] Global staffing and the importance of a globalized workforce [11:48] CFOs moving from compliance to strategic advisory services [12:26] The shift from translating accounting to focusing on KPIs. [15:18] CEOs gaining fluency in accounting around $3-5 million in revenue.[17:03] Lagging and leading indicators: financial metrics and operating metrics.[19:43] Recommended KPI tools: sift, giraffe, and 90 for EOS adoption. [20:51] Shifting from reviewing financial statements to predictive KPIs. [25:36] App fatigue and consolidation in the market. [27:59] Building AI into accounting products for 2024. [32:23] AI trends and building partnerships for AI tools. [35:15] The challenge of balancing change and safety as a CFO. [36:00] Focusing on prevent controls rather than detect controls [39:33] Attrition has decreased due to fewer job opportunities, with employees hunkering down and staying in their current roles LinksMAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Jon Cochrane, VP of Strategy at Maxio and Director of the Maxio Institute, to discuss the Maxio Institute Growth report and the future of the Maxio Institute. Randy and Jon delve into key insights from the report, including the resilience of B2B businesses and the impact of the pandemic on different industries. They discuss how data can drive growth and inform business strategies and the challenges faced by sales and marketing tech companies amid competitive pressures and shifting budgetary priorities. Listen as they explore the unique paths to growth among small SaaS businesses, emphasizing the importance of predictable invoicing and cash management.Quotes"Build a great team, make sure that you have great data that you can access regularly, that can be surprisingly hard. And then talk to somebody who has been there and done that and who has done this well in the past. I think you'll find that the community is quite generous with their thoughts and their insights and sharing that, because all the people who love number crunching and data crunching, this stuff is fun too, to be able to share and analyze.” -Jon Cochrane [25:49]“[What] we're trying to do is help the SaaS industry get better through better insights. And for CEOs like me who are freaked about what's unfolding day to day and how are we going to continue to grow in this world and deliver shareholder value, being able to share insights that create a collective understanding of reality is better for everyone.” -Randy Wootton [32:33]Expert Takeaways The Maxio Institute Growth report provides essential benchmarks for private SaaS businesses based on real-time invoicing data.The SaaS industry appears to be returning to normalized growth rates with an average annualized growth rate of about 15% in 2023.Industry-specific differences are pronounced with the restaurant, hospitality, and leisure sectors leading year-over-year improvement.Early-stage SaaS companies with a consumption-based monetization strategy under one million dollars in billings show minimal growth.Potential future expansions of the report include deeper industry analysis and coupling quartile analyses with industry benchmarks.Timestamps[03:44] Maxio Institute: providing real industry benchmarks and insights for the private markets[05:00] The challenge of obtaining accurate data in the private markets[06:01] The importance of timely data in the Maxio Institute report[09:20] Key insight: B2B businesses have proven resilient and have returned to more normalized growth rates[10:59] Impact of the pandemic on different industries[13:51] Challenges in marketing tech with numerous competing vendors[18:27] Importance of predictable invoicing for early-stage companies[21:48] Cash management and milestones in SaaS growth[33:01] Investing in insights for growth and shareholder valueLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Thomas Lah, co-founder of the Technology Services Industry Association (TSIA). Randy and Thomas take an in-depth exploration of the journey from traditional software models to SaaS, the dynamics of profitability within the industry, and the development of key success metrics. Thomas shares valuable experiences from his tenure at Silicon Graphics to his groundbreaking approach in founding an association focused on data and insights for the technology services industry. Randy and Thomas navigate through the transformational shift from on-premises software models to cloud-native SaaS businesses, revealing trends, challenges, and strategies for acclimating to new market realities. Quotes"If your RAC (revenue acquisition cost) number is higher than your competitors, you have a problem. You have a serious problem because you are not as efficient at generating revenue growth. And that's going to catch up with you. How much time and treasure you're going to have to spend to get market share.” -Thomas Lah [22:20]“SaaS companies can be replaced. As a CEO or CFO, you have to think about your unique value in a way that doesn't lock the customer in. You have to continue to give value. It's a value conversation versus a price increase conversation.” -Randy Wootton [38:58]Expert Takeaways The Rule of 35, proposed by TSIA, serves as a new benchmark for operational efficiency, complementing the well-known Rule of 40 in guiding SaaS companies towards profitability.Monetizing service motions, migrating commercials, and leveraging data for growth are crucial levers for improving SaaS profitability.The RAC (Revenue Acquisition Cost) to CAC (Customer Acquisition Cost) metric provides a clearer picture of growth efficiency compared to CAC alone.There has been an increase in focus on financial austerity among SaaS companies, with significant layoffs marking a move toward more sustainable growth strategies.Timestamps[03:25] Transformation from on-prem to cloud-native software [07:13] Migration from on-prem to managed service offers [10:19] Challenges of achieving profitability in the SaaS business model [13:07] Tech companies have eliminated almost a million jobs [14:18] Importance of being profitable and the rule of 40 [22:10] Salesforce, ServiceNow, and Zscaler's rack numbers compared to competitors [24:37] CFOs need to shift from Excel to database models for data analysis [29:15] CFOs need to shift from compliance to strategic partnership [31:44] The "porpoise principle" of becoming profitable before making growth investments [40:01] Changing the operating model is the hard work for profitability [40:57] "Digital Hesitation" and "As a Service Playbook" are recommended booksLinksMAXIOUpcoming EventsMaxio Institute Report

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks to Bebe Kim, a seasoned entrepreneur and CEO of Basis, to shed light on the changing landscape of the office of the CFO and the evolving role of finance professionals. They take an in-depth exploration into the intersection of finance, technology, and leadership, offering valuable insights for those in the SaaS industry. Bebe shares the three-stage evolution of the office of the CFO and how financial acumen is crucial in today's fast-paced, software-driven business environment. With an emphasis on data-driven decision-making, cross-functional collaboration, and continuous learning, Bebe provides a wealth of knowledge on becoming a strategic financial leader in the 21st century.Quotes"Growth at what cost is more of the question than growth at all cost.” -Bebe Kim [08:35]“As a CFO, you need to move from just reporting to helping your entire executive team become financially literate so they can understand how decisions are made in trade-offs. So you have this team dynamic versus the CFO off by themselves, building their budget and getting it approved.” -Randy Wootton [34:40]Expert Takeaways The office of the CFO is undergoing significant transformation, driven by advances in technology like AI, software managed services, and out-of-the-box financial tools.The evolution of the CFO's role can be marked in three stages: working in spreadsheets (no box), software-managed services (out-of-the-box phase), and finally, the incorporation of AI (black box).For modern CFOs, successful execution relies on understanding databases, trusting system-driven calculations, and adapting QA methods beyond traditional bottom-up approaches.Automation and AI are pivotal in scaling the finance function, necessary to counteract the dwindling pool of accounting and finance professionals entering the workforce.Continuous learning and adaptability in finance are indispensable, enabling CFOs to transition from mere reporting to becoming key strategic partners to executive teams.Timestamps[01:19] Bebe Kim's journey as an entrepreneur and the evolution of her role [05:25] Challenges and lessons learned from raising venture capital [09:47] The importance of growth efficiency and discipline [11:32] Lessons learned in a growth-conscious, VC-backed company [12:03] Capital allocation and starting basis [13:29] The challenge of understanding financials for non-finance executives [16:47] The three stages of CFO role transformation [19:47] The importance of cash management for the CFO [22:06] The skill sets required for stage two CFOs [23:41] The challenges of working with databases for CFOs [29:48] The availability of enterprise tools at SMB and mid-market prices [32:57] AI's potential to replace repetitive tasks [34:40] The role of CFOs in partnering with fast-growing companies [37:03] Contact BasisLinksMAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Ron Baker, CEO of Verasage Institute, author, and long-time influencer in the finance and accounting space. Ron and Randy discuss the concept of value-based pricing and the need for businesses to move away from the traditional hourly billing model. Ron also highlights the need for CPAs to shift from being problem solvers to strategic advisors, guiding businesses toward their desired future state. Ron and Randy discuss the value of taking risks and adapting to change to stay ahead in a disruptive market as a business. Quotes"For value pricing, it is just a different mindset. It's more of an entrepreneurial mindset than a production mindset. It's more of being a true professional, a definition of a professional, somebody who's accountable for creating a result, not performing a series of tasks. If I want a series of tasks, I'll hire a day laborer to walk my dog, mow my lawn, and clean my gutters. But if I hire a professional, I'm looking for some type of outcome. Perfect eyesight from an eye doctor, that type of thing. And the problem with the timesheet and the billable hour, the mindset that it creates is that's what we sell.” -Ron Baker [04:47]“The distinction between a series of tasks versus result orientation, one of the keys is vertical expertise. So, understanding the nuances, I used to talk about that with selling. You could sell into travel, but selling travel is super different when you're selling to hotels versus airplanes versus car rentals and seats versus heads and beds. The language you used, how they thought about getting people, and the acquisition costs, are all very unique to the sub-verticals. 20% of accounting firms that are doing well by being advisors is they have context, industry context, probably they know a bunch of people and they've got a bunch of. They're able to do pattern matching.” -Randy Wootton [12:49]Expert Takeaways Value-based pricing is a more effective approach than hourly billing, as it focuses on customer value rather than time spent.CPAs should move from being problem solvers to strategic advisors, guiding businesses toward their desired future state.Subscription business models offer simplicity, convenience, and peace of mind to clients while providing firms with planned capacity and the ability to offer additional services.Deep industry expertise and specialization are key factors in the success of advisory services.Businesses should be willing to take risks, as profits come from risk-taking.Timestamps[00:02] Introduction to Ron Baker and his work on value-based pricing [02:43] The need to move away from billing based on time [03:37] The problem with timesheets and the importance of measuring results [06:10] The pricing revolution in corporate America [08:46] Moving away from cost-plus pricing to customer-value pricing [12:43] Characteristics of successful accounting firms [16:33] Subscription business model for accounting services [21:37] Amazon's acquisition of One Medical and the subscription model [23:12] Differentiation in willingness to pay and understanding customer needs [31:13] Evolution of accounting and finance function to strategy and possibility [33:21] Profits come from risk, not just past data LinksMAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Robbie Baxter, CEO of Peninsula Strategies and a leading expert on subscription business models and monetization. She has worked with companies like Netflix and has written two books on the topic: "The Membership Economy" and "The Forever Transaction." Robbie shares her background and interest in subscription models, as well as the key concepts and best practices outlined in her books. Robbie shares insights on the importance of designing products for ongoing value, the need for organizations to focus on customer outcomes, and the challenges of scaling and staying relevant in a subscription-based business. She also highlights the example of Strava and how they successfully built a community of loyal customers. Quotes"You need a lot of discipline, I think, in a SaaS model. So you need to know this kind of customer, this is how the relationship is going to expand over time and I think together to kind of start to set expectations about where is this relationship going to go after the moment of sale. The moment of transaction is the starting line, not the finish line.” -Robbie Baxter [13:03]“One of the interesting things about the SaaS business model, in general, is, obviously for Maxio, we help people understand their SaaS operating metrics, and we're able to pattern match across the 2300 customers. I think all VCs and PE firms are doing the same. So they say, look, if you're a SaaS company, this is what your net retention should be. This is how much you spend on sales and marketing. So I do think there's pattern matching going on, and everybody has the playbook now.” -Randy Wootton [21:50]Expert Takeaways Subscription business models require products that solve ongoing problems and are designed for easy deployment and expansion over time.Organizations need to focus on customer outcomes and align their pricing with the value they provide.Balancing acquisition metrics with retention metrics is crucial for long-term success in the subscription economy.Subscription fatigue is a real challenge, and companies need to continuously demonstrate value to retain customers.Listening to the voice of the customer means considering not just existing customers, but also lapsed customers and prospects.Timestamps[01:28] Robbie's career journey [08:33] Focus on customer success and engagement for retention [11:44] Sales-led growth vs. product-led growth models [13:35] Aligning pricing with customer outcomes in SaaS models. [17:06] Moving from short-term revenue to long-term customer relationships. [17:46] "The Forever Transaction" as a playbook for B2B SaaS success. [20:52] Loyalty vs. Inertia [25:31] Subscription fatigue and managing multiple subscriptions is complex. [29:30] Staying current and responding to market evolution is crucial. [31:31] Subscription dieting and the pressure to demonstrate value and justify prices. Connect MAXIOUpcoming Events

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Dan Owens, CFO of Maxio, about the disruption of the Office of the CFO and the changing role of the CFO. Dan shares his insights and experiences from working with various portfolio companies and PE firms, highlighting the importance of data organization, the challenges of managing multiple systems, and the need for tech savviness and adaptability in the modern CFO role. Dan discusses the value of soft skills, such as leadership and communication, and the integration of sustainability in finance operations.Listen this week as Dan gives recommendations for those starting their careers in finance and shares his favorite and most misunderstood metrics in the SaaS industry.Quotes"Technology can be your friend, or it can actually be a burden when you look at all the nice shiny tools out there that are going to solve your problem. But at the core, you have to get to the fundamentals, the tool and the technology will help you get faster and more efficient at the fundamentals. But I think I never want to be in a position where I can't get to the answer or have to do it.” -Dan Owens [10:39]“I think as I describe it, the worst thing about a CEO and a CFO going to a board meeting is going into math camp, where the investors start poking and they find inconsistencies between what you may have represented last quarter or the quarter before. So one of the things is having a common understanding of where the data is coming from, a framework for reporting on it, and then making sure it's consistent .” -Randy Wootton [05:33]Expert Takeaways Data organization is crucial for CFOs to meet the needs of investors and partners and make informed decisions.The tension between different metrics reported by sales and finance teams can be resolved by having a unified data system.The modern CFO needs to be tech-savvy and adaptable to effectively use data and technology tools.Soft skills, such as leadership and communication, are essential for CFOs to partner with go-to-market teams and drive growth.The integration of sustainability in finance operations is becoming increasingly important for companies.The challenges for CFOs include attracting talent, managing remote teams, and making strategic decisions on technology investments.Timestamps[01:16] Dan's experience with portfolio companies and the need for better data organization [08:17] Changing skill set of CFOs: tech savviness, soft skills, and integration of systems [01:06] Importance of data architecture and interoperability between systems [13:33] The value of bi-directional data sharing across departments [14:17] CFOs transitioning from back office to front office roles [17:41] The benefits of using the Maxio solution [20:19] The shift towards analysis and providing insights in finance [22:38] Balancing technology investments with ROI considerations [26:06] The importance of bringing people together in a remote team [27:39] Budgeting for internal use software [31:46] Favorite SaaS metric: Gross retention [33:07] Most misunderstood metric: Leverage ratio [34:29] Cash engine and growth engine in a business Connect MAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Kevin Sonsky, a finance executive with extensive experience in the SaaS industry. They discuss the evolving role of the CFO in the face of technological disruption and the importance of understanding and leveraging SaaS metrics. Kevin shares his insights on the transition from traditional accounting to business intelligence analytics, the dynamics between the executive team, and the challenges of implementing a metrics policy. He also highlights the need for CFOs to educate sales and customer success teams on SaaS metrics and the importance of aligning incentives with ARR growth. Listen as Randy and Kevin discuss the role of the CFO in driving strategic go-to-market partnerships and the potential for AEs to act as CEOs of their territories.Quotes"When you're not in the room while difficult decisions are being debated, you don't always appreciate the fact that sometimes there's not always an easy or even great answer. Sometimes you're choosing from two suboptimal choices. It's not always easy. You do your best to do what's best for the company, for the employees, for the customers, and sometimes you have to take trade-offs on that.” -Kevin Sonsky [04:21]“I think that's what we're seeing even more broadly in the disruption of the office, the CFO. It's a new way of aggregating data. It's a new way of connecting technology. It's a new way of thinking about the reporting. It's not just the financial close and the three financial statements. But now you have a limitless number of operating metrics tied to the SaaS business model that you can pull together.” -Randy Wootton [09:07]Expert Takeaways The CFO plays a critical role in educating the business on SaaS metrics and helping teams understand how to measure success in a subscription-based model.A metrics policy is essential for defining and standardizing SaaS metrics within an organization, including definitions, reporting cadence, and incentive structures.CFOs can add value by running analytics on customer ARR and providing insights to account executives for better decision-making.Net retention value is a key metric to track the growth of existing customers and determine if the business is expanding without adding new customers.CFOs can help sales teams understand the sensitivity of churn rate on ARR growth and the impact of retaining existing customers.Timestamps[01:00] Kevin's background and career transitions [04:00] Importance of educating sales and CS leaders about the business [06:11] Challenges in measuring ARR and SaaS metrics [08:07] The Role of the CFO in educating teams and leaders[10:03] Components of a metrics policy and its importance [11:03] Ensuring data integrity and system alignment in reporting metrics[12:52] Importance of consistent metrics and reporting [14:58] Shifting salespeople's focus to incremental dollars from customers [18:45] Alignment between the executive team and ARR growth[21:26] FP&A adding value through analytics and cohort analysis[22:24] Strategic pricing, packaging, and understanding unit cost economics[24:46] CAC metric: payback period for sales and marketing investment [26:07] Best way to contact Kevin Sonsky: LinkedInConnect MAXIO

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Chris Ortega, CEO and founder of Fresh FP&A. With almost 20 years of experience in accounting and finance, Chris is a leading expert in the field. Randy and Chris discuss the top three changes in the accounting and finance profession over the last 15 years and the impact of technology. Chris talks about the increasing value proposition of CFOs and the era of disruption in the office of the CFO. Listen as they delve into the role of AI in finance and the importance of employee NPS as a metric for success.Quotes"People above profits, impact over income, purpose over praise. The more that we can have that inside the business, the more value we're going to bring outside.” -Chris Ortega [26:28]“You want to be able to find replicable things. The process, the information flow, and the data flow. Then you're able to layer in automation. What's interesting in the office of the CFO is there is this feeling of, I want to look at my spreadsheet because I trust that.” -Randy Wootton [07:02]Expert Takeaways Technology has dramatically evolved in the accounting and finance profession, providing tactical advantages and streamlining operations.The value proposition of CFOs has shifted from being scorekeepers to strategic partners, bringing more value to the organization.The office of the CFO is poised for disruption, driven by technology and the changing role of CFOs.AI is not meant to replace CFOs but to level them up and enhance their capabilities.Employee NPS is an undervalued metric that CFOs should focus on to gauge employee satisfaction and engagement.Timestamps[00:00] Randy's Intro [00:34] Chris' Intro[00:59] Top three changes in the finance profession[03:45] Embracing technology in the office of the CFO[07:33] Resistance to AI in the accounting profession[10:49] Prompting GPT-4 to create an ASE 606 memo for a retail client [14:24] Impact of AI on every function, data strategy, and go-to-market [18:21] Finding connections and insights through local meetups and events [25:25] Undervalued metric: Employee NPS for CFOs to focus on[26:28] CFOs partnering with HR to improve employee engagement [28:22] CFOs prioritizing people connections and real-life interactions[31:06] Legacy and the importance of writing one's own storyConnect MAXIOUpcoming EventsMaxio Institute ReportRandy Wootton LinkedInChris Ortega LinkedInAbout MAXIOMaxio helps businesses accelerate growth efficiency with the industry's only all-in-one billing and financial operations platform purpose-built for the needs of B2B SaaS. With Maxio, businesses...

In the season premiere of the Saas Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Todd Gardner, Managing Director at SaaS Advisors and founder of SaaS Capital. Randy and Todd discuss the current state of the capital markets for SaaS companies and the recent deceleration in the growth rate of SaaS companies. Todd emphasizes the value of three key metrics for fundraising: growth, profitability, and retention. He explains that while growth has traditionally been the most important metric, retention is now taking precedence and stresses that SaaS companies need to focus on improving their gross revenue retention and be intentional about their growth and profitability strategies. Todd also encourages companies to test the market for fundraising opportunities, as capital is still available for the right companies.Quotes“Gross takes out the effects of cross-selling and price increases and even some usage-based increases. And gross is believed to be, and I think a more pure measurement of the stickiness of the revenue stream. It's not clouded by some of the things that can be included in net retention.” -Todd Gardner [09:38]“It is really hard to do a pivot in a high-growth SaaS business where there's been an enormous amount of capital invested in the future potential. So a pivot in that case turns into a recap. No investor wants a recap. But if you are looking at the reality of under single-digit growth and not being able to get profitable and running out of cash, it's a come to Jesus moment.” -Randy Wootton [20:12]Expert Takeaways Retention is now a top priority for investors, and companies need to focus on improving their gross revenue retention.Growth, profitability, and retention are the three key metrics for fundraising, with retention currently taking precedence.SaaS companies should be intentional about their growth and profitability strategies and pick a lane to avoid being caught in the middle.It is not a bad time to raise capital, as there is a lack of quality SaaS companies in the market and a significant amount of capital available.Timestamps[00:00] Randy's Intro [01:14] | Todd's Intro [02:28] | Productive time for focused SaaS companies to build their product[04:45] | SaaS valuations have regressed to the mean[07:00] | Growth, profitability, efficiency, and retention [11:19 | Logo retention and ACV are important factors in retention analysis[13:03] | Burn ratio and profitability as key metrics for SaaS companies[18:21] | Death Valley: Getting out of the low growth, low profitability [19:37] | Pivot or Recap: Options for companies with low growth[21:41] | Testing the market for fundraising opportunities[23:52] | Importance of clarity in value creation plan for funding[24:00] | Contact Todd GardnerConnect MAXIOUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn