Mar 16, 2022
Have you ever heard the saying that revenue is vanity, profit is sanity, and cash is reality? Today’s guest, Robert E. Bendetti, is the CFO at Life Cycle Engineering. He holds a master's degree in accounting and financial management and an MBA specializing in small business management and entrepreneurship, as well as being a certified public accountant. Throughout the episode, we cover several key concepts that help business owners grow their businesses and adapt to ever changing markets.
[03:21] Background – Robert shares his background and the company's operations.
[05:20] Cash Flow Management - Robert emphasizes the importance of cash flow management and gives his perspective as a CFO on appropriate cash management for small enterprises.
[08:48] Cash Conversion Cycle – Robert discusses approaches to optimize the cash conversion cycle, emphasizing the importance of timely invoicing, collection challenges, and the smoothness of the payment process.
[11:50] Tips – Robert shares an approach for reducing turnaround time and illustrates a simple mechanism to increase collection rates.
[20:29] Profitability – Robert points out how to convert cash to profit, describing what balance sheet and income statement items need to be monitored.
[23:25] Paying Yourself vs. Reinvesting – Robert outlines how to decide whether to invest additional funds to boost profitability and future growth or pay yourself.
[31:41] Transition – Robert addresses what individuals approaching retirement or transition should consider 18 months before leaving a firm.
[40:25] Employee Stock Ownership Plan – Robert dives deep into ESOP and related topics.
[51:31] Global CFO Council - As President and Founder of Global CFO Council, Robert mentions what he hopes to accomplish through the organization.
Resources:
Connect with Robert:
LinkedIn: linkedin.com/in/robertbendetti/
Website: www.lce.com