Negotiating Team Budgets

"Should we hire or should we cut?" is a question I'm hearing often from small business owners right now, which is fair given the mixed economic signals. Some clients are seeing their best quarters ever. Others are watching pipelines thin out. Everyone seems to be asking, "How do we plan for what we can't predict?" This is where scenario planning becomes your survival tool; not just hoping for the best, but modeling the reality of different futures. Here's what we walk our clients through: 🌳 The Growth Scenario: For example, if revenue is expected to be up, we’re looking at potential team expansion and higher overhead. Looking at what that does for cash flow given the changes to expected expense changes. 🌱 The Steady Scenario: Where flat growth is expected and we plan to maintain current team, we’ll want to optimize margins and prepare for inevitable per team member increases. There will likely be some percentage increase YOY but we expect the core costs to stay the same. 🍃 The Contraction Scenario: On the other hand, if revenue is expected to go down, we want to look at strategic cuts that allow the team to run efficiently while preserving cash. For our clients, this is usually a mix of team, professional services, and travel. We also want to ensure that the resources kept are used efficiently. Each scenario gets its own financial mode where we map out cash flow, runway, and break-even points for 3, 6, and 12 months ahead. The command center for this? Fathom. We've been using Fathom since the beginning of Little Fish Accounting and it lets us build the scenarios in real-time with clients, showing exactly how each decision ripples through their financials. No more spreadsheet gymnastics or gut-feeling guesses. Ultimately, the founders who survive uncertainty aren't the ones with crystal balls—they're the ones with clear models and decisive action plans. And we're glad to be the builders 🧱

Don’t treat your budget for your accounting firm as a constraint use it as a target 🎯 Most firm owners think of budgets as a “worst-case limit” on spending. I recommend something different which is to use your budget as a strategic tool to build the business you actually want ✨ Here’s how to do it… Step 1 – Define Your Goals First 🥅 Do you want more profit, more personal time, or to create a specific impact? Be clear as your budget should be built around your vision, not just numbers. Step 2 – Work Backwards from the Future 🔮 Look 3 years ahead and map where you want to be. Then reverse engineer the numbers back to today. This gives you a clear bridge from now to then. (Make sure you document your assumptions!) Step 3 – Pay Yourself Properly 💷 Always include a notional market-rate salary for yourself as director - even if you don’t take it. Your business model must be sustainable with you built in otherwise you’re pricing based on free labour. I know this isn’t technically correct if you are taking dividends however this isn’t about technical points, it’s about building a business model that works commercially Step 4 – Focus on Gross Margin and Capacity Direct salaries including the proportion of your own notional salary for client work should sit above the gross profit line. But don’t stop there you need to test whether your team (and you) actually have the capacity to deliver the work you’re budgeting for. Step 5 – Model Income Realistically - Split recurring vs one-off income. - Break revenue targets down into actual client wins (e.g. “2 x £1,500/month clients and 5 x £300/month clients”), not vague percentage growth. - Factor in seasonality and conversion rates as growth isn’t always linear. Step 6 – Don’t Forget Churn Clients will leave. Build expected churn into your budget so it doesn’t catch you off guard. That way you’ll know how many net new clients you need each month. Step 7 – Consider Cash Flow & Risk A budget that looks good on paper can still fail if the cash doesn’t come in quick enough. - Map out ins and outs to ensure you won’t run out of cash (Float Cash Flow Forecasting is brilliant for this) - Build scenarios…best case (target), base case(realistic), and worst case (minimum viable). This gives you insight on what’s likely when actuals don’t match the plan. Step 8 – Review, Learn, Adjust Each month, compare actual vs budget. Don’t just note the difference ask why, and make decisions to bring things back on track (or to go after more opportunities). For me, a budget isn’t about limiting ambition it’s about engineering the firm you want to own three years from now. Used properly, it’s one of the most powerful tools to focus your energy, align your team, and build lasting value 🙌 Save this post for the next time you sit down to plan your numbers. ✨ That way you’ll stop budgeting for worst case and start budgeting for the business you actually want to create. 🦩🦩

Ever notice how some people get their ideas approved effortlessly while others face constant pushback? The difference isn't charisma. It's preparation. I am in Japan this week and found this. In Japan, they have a word for this: Nemawashi. It means "preparing the roots" before you plant. Smart leaders never walk into important meetings cold. They build consensus one conversation at a time. Here's the 6-step system that turns skeptics into supporters: 1. Map Your Stakeholder Tree ↳ List everyone affected by your decision ↳ Note their concerns and influence level 2. Start With Your Skeptics ↳ Meet them first, not last ↳ They'll help you spot real problems early 3. Listen More Than You Pitch ↳ Ask what worries them about your idea ↳ Understanding beats convincing every time 4. Co-Create Solutions Together ↳ Ask how they would approach the challenge ↳ Include their ideas in your final plan 5. Circle Back With Updates ↳ Show how you used their feedback ↳ People support what they help build 6. Make Meetings a Formality ↳ When everyone arrives already aligned ↳ Your proposal passes without debate I've seen this transform outcomes: ✅ A project no one believed in suddenly gets full support ✅ A budget that usually faces scrutiny gets approved fast ✅ A major change goes smoothly instead of causing chaos This isn't about manipulation. It's about giving people a voice before decisions are made. Try this with your next big proposal. Start with one skeptic.  Have one honest conversation. You'll be surprised how quickly resistance becomes partnership. 👉 Share this to help your network master the art of building consensus. Follow Christian Rebernik for more on strategic influence and high-impact decision-making.

🧵 From Floors to Winning Meetings During my time at RSWM, I noticed a common pattern in production meetings. We would review productivity and damage data, but the weaving head never looked at the data before the meeting. Instead, he would start blaming spinning or maintenance, and the whole discussion turned chaotic. In budget meetings also, I faced the same story — people came unprepared, discussions went off-track, and the final conclusion was always: 👉 “I will check and revert.” Over the years, I’ve also seen that many owners and senior management teams remain busy in back-to-back meetings, yet when you ask about outcomes, the honest feedback is — 🗣️ “Meetings are a waste of time; nothing concrete comes out.” That’s when I realized — meetings don’t fail because of people, they fail because of poor structure and lack of process discipline. So, I built a simple framework that turned every meeting into an action platform. 💡 My 6 Meeting Rules – From floor to Leadership 1️⃣ Start with Data, Not Debate Everyone must review data before entering the room — be it loom efficiency, damage %, or budget variance. ✅ Everyone starts equally informed ✅ No time wasted in blame games ✅ Keeps discussions result-focused 2️⃣ The Two-Machine Rule Only include people directly responsible or impacted. ✅ Smaller teams = faster, sharper decisions ✅ Avoids unnecessary crowd and confusion 3️⃣ No PowerPoint, Only Process Sheets Real problems don’t need decorated slides — they need process clarity. ✅ Encourages technical discussion ✅ Exposes issues early ✅ Keeps focus on root cause 4️⃣ Keep a Buyer’s Chair Empty Every meeting should symbolically have one chair for the customer. ✅ Keeps user expectations at the center ✅ Prevents internal bias ✅ Encourages customer-first decisions 5️⃣ Encourage Disagreement, Then Commit Let spinning, weaving, and finishing heads debate openly — but once decided, all must align. ✅ Builds trust and teamwork ✅ Avoids post-meeting silence or resistance 6️⃣ End with Clear Ownership Every meeting must close with — Who will do what, by when? ✅ Avoids ambiguity ✅ Converts talk into action ✅ Makes meetings productive When I was at Ingersoll Rand, we deeply practiced the Japanese principle of Gemba — “go and see where the real work happens.” It’s a powerful tool to understand the root cause instead of just reading reports. Inspired by that, I later assigned a trainee consultant at RSWM to teach us Gemba and Kaizen techniques, which turned out extremely effective in improving productivity and problem-solving culture. 💬 In textiles, whether it’s the roduction floor or the boardroom — success doesn’t depend on the number of meetings, but on the clarity of data, discipline of preparation, and accountability of action.

Most PE-Backed Finance Teams Are Broken. Here’s exactly how to fix them—at every stage of scale. We built the definitive finance team blueprint based on EBITDA level—designed to eliminate chaos, unlock visibility, and accelerate value creation. --- 1️⃣ $1M–$5M EBITDA Companies The Reality: - Excel is the system of record - Internal controls are nonexistent - Cash visibility = best guess - Every close is a fire drill Winning Team Structure: - Bookkeeper / Junior Accountant – Owns AP/AR, bank recs - Controller (FT or fractional) – Month-end close, audit readiness - Fractional CFO – Infrastructure, capital planning, strategic support - Tech Stack: QuickBooks or Xero (don’t overengineer it) > Keep it lean. Prioritize control, visibility, and a clear path to scale. --- 2️⃣ $5M–$15M EBITDA Companies The Reality: - Reporting exists, but tells no story - Teams break under M&A and system changes - Finance is still seen as a cost center Winning Team Structure: - Controller – Owns GL, close, controls - Accounting Manager – Revenue, AP/AR oversight - FP&A Analyst – Forecasts, budgets, variance analysis - CFO (fractional or FT) – Capital structure, lender/investor comms - Optional: AP/AR Clerk – Handles transaction volume - Tech Stack: NetSuite or Intacct + Power BI or Tableau > This is the stage where finance must evolve from “back office” to “strategic partner.” --- 3️⃣ $15M–$25M EBITDA Companies The Reality: - Close takes 10+ days - Board reporting is backward-looking - ERP is underused and integrations lag Winning Team Structure: - Full-Time CFO – Strategic leadership, investor-facing - Finance Director – Owns FP&A, business partnering - Controller – Compliance, controls, reporting - FP&A Team (1–3) – Modeling, board decks, scenario planning - Accounting Staff (2–5) – GL, AP/AR, fixed assets - Treasury Manager – Cash, debt, working capital - Systems Analyst – Optimizes ERP, owns integrations - Tax Support – Internal or outsourced - Tech Stack: NetSuite + Vena + BI (Power BI/Tableau) > At this stage, precision, speed, and scalability are everything. --- These frameworks aren’t rigid. Start with your biggest constraint—and build the team that solves it.

A CEO pulled me aside at a conference: "My VP of Finance is brilliant. Top MBA. Fifteen years of experience. But they're just not strategic enough." I asked one question: "How much of their week is spent updating spreadsheets?" Long pause. "Probably... 60%?" Here's the truth I've learned watching finance teams for two decades: Strategic thinking doesn't emerge from exhaustion. The most talented finance leaders I know aren't failing at strategy because they lack vision. They're failing because they're drowning in manual work that shouldn't exist in 2025. I watched one finance team transform completely: Before: Monday through Thursday: Chase down actuals, consolidate spreadsheets, fix broken formulas, reconcile versions Friday: Rush to build analysis that's already stale After: Monday: Actuals automatically consolidated Tuesday-Friday: Scenario planning, strategic analysis, partnership with department heads The CEO's response: "I didn't hire a different person. I just freed the person I already had." You can't think strategically when you're thinking about VLOOKUP errors. You can't see around corners when you're staring at cells. You can't be a co-pilot when you're manually updating the instrument panel. The finance leaders earning their seat at the table have something in common: They stopped spending time on: → Manual data aggregation → Formula troubleshooting → Version control nightmares And started spending time on: → "What if" scenario modeling → Identifying risks before they materialize → Proactive recommendations that change outcomes If your finance team isn't strategic enough, don't hire different people. Free the people you already have. #CFO #Leadership #FinanceTransformation #FPandA #StrategicFinance #CEO #TalentDevelopment

I still remember the founder's devastated expression. Why? Because he built his finance team backward—tactical hires in strategic roles. Then he asked for our help. Here's what we did: 1️⃣ CFO Strategic Positioning - We elevated financial leadership beyond numbers.  - We connected financial insights to business decisions.  - Executive communication transformed. 2️⃣ Controller Operational Excellence - We restructured reporting systems. Accuracy became non-negotiable. - Financial controls implemented. Risk management became proactive. - Budget oversight reimagined. Spending aligned with strategic priorities. 3️⃣ Accountant Foundation Strengthening - We perfected transaction processing. Data integrity became sacred. - Month-end closing streamlined. Financial cycles became predictable. - Tax compliance revolutionized. Documentation became bulletproof. 4️⃣ Role Boundary Definition - We eliminated ownership confusion. - Collaboration protocols established. - Accountability metrics defined. 5️⃣ Strategic Financial Ecosystem - We integrated all financial functions.  - Career progression pathways created. - Financial decision-making accelerated. CFOs lead strategy. Controllers run operations. Accountants protect the base. Get the roles wrong, and growth stalls. Get them right, and scale becomes inevitable. #finance  #accountant  #businessgrowth 

Ever notice that sometimes unanimous decisions made in the boardrooms collect dust? Everyone nods in the meeting, but nothing actually moves because departments are busy putting out daily fires. This may sound all too familiar. So what do you do? Here’s the uncomfortable truth: → You got a polite consensus, but that's not a real commitment. And polite consensus is where strategies die. I’ve seen it at every level, from entry to executive, across three continents, and every major regulatory pathway. Brilliant minds coming together, discussing the science, the strategy, the risks. Everyone agrees “in principle.” But people who need to execute couldn't align with it. What’s happening? → The logic was sound, but the buy-in was weak. → People feared rocking the boat, so they nodded along. → Action items were assigned, but not owned. Here’s what I learned about breaking the cycle: Replace “any objections?” with “what would stop you from acting on this tomorrow?” ↳ Force the real barriers into the open. Don’t ask for consensus. Assign clear ownership. → “Who here is personally accountable for moving this forward?” Translate decisions into next steps right there in the meeting. Harmony without ownership is just inertia in disguise.

Everyone talks about profit... But nobody tells you why most businesses are drowning in debt despite healthy margins. Why? Because you’re missing provisions. Without provisions, your business walks a tightrope, vulnerable to unexpected expenses. One sudden cost could disrupt everything. Your team’s salaries, supplier payments, and growth plans all hang in the balance. As your CFO partner, here’s how we’ll create financial stability: 1. Provision Tracking System    - Identify potential liabilities early    - Calculate the reserves you’ll need    - Set automated savings rules to build those reserves consistently 2. Monthly Health Checks    - Regularly review your cash position    - Adjust provisions based on changing needs    - Monitor risk areas to stay ahead of potential issues 3. Strategic Reserves    - Build an emergency fund    - Plan for equipment replacements    - Create a buffer for seasonal fluctuations This approach keeps you ready for anything. Cash flow remains stable, and safety nets are in place. Your decisions become proactive, not reactive. Remember: Profit looks great on paper, but provisions keep you in business. #provisions  #businessgrowth  #finance 

Quick test for CFOs: If I asked for the ROI on your strategic initiatives, could you answer in under 60 seconds? One CFO couldn't. He had 9 of them. Only 2 created value. The other 7 cost $940K a year. Here's what we found: 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 #1: 𝗡𝗲𝘄 𝗕𝗜 𝘁𝗼𝗼𝗹 $120K setup + $60K/year. 6 months, 3 people. Built 18 dashboards. CEO looks at 2. 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 #2: 𝗦𝗞𝗨 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗺𝗼𝗱𝗲𝗹 ✅ 80 hours. Killed 40 losing SKUs. Freed $1.2M in inventory. 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 #3: 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗟𝗧𝗩 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 ✅ 60 hours. Repriced 3 segments. Margin up $400K/year. 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 #4: 𝗦𝗮𝗹𝗲𝘀𝗳𝗼𝗿𝗰𝗲 𝗶𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 $80K + 4 months. Sales still uses Excel. Integration unused. 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 #5: 𝗘𝗥𝗣 𝘂𝗽𝗴𝗿𝗮𝗱𝗲 $340K + 9 months. Same processes, shinier interface. 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 #6: 𝗥𝗼𝗹𝗹𝗶𝗻𝗴 𝗳𝗼𝗿𝗲𝗰𝗮𝘀𝘁 𝗿𝗲𝗯𝘂𝗶𝗹𝗱 3 months, 2 analysts. Too complex. Team reverted in 6 weeks. 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 #7: 𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴 100 hours. Built 12 scenarios. Exec team used 3. 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 #8: 𝗕𝗼𝗮𝗿𝗱 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗿𝗲𝗱𝗲𝘀𝗶𝗴𝗻 60 hours/quarter. Board asked for old format back. 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲 #9: 𝗖𝗼𝘀𝘁 𝗮𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝗺𝗼𝗱𝗲𝗹 120 hours building. Department heads ignore it. 𝗧𝗼𝘁𝗮𝗹 𝗰𝗼𝘀𝘁 𝗼𝗳 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲𝘀 𝟭, 𝟰, 𝟱, 𝟲, 𝟳, 𝟴, 𝟵: Labor: ~$780K/year Tools: ~$160K/year Total: $940K/year EBITDA impact: $0. 𝗘𝗕𝗜𝗧𝗗𝗔 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲𝘀 𝟮 & 𝟯: $𝟭.𝟲𝗠/𝘆𝗲𝗮𝗿. The CFO's reaction: "We've been calling everything 'strategic' because it sounds important." 𝗧𝗵𝗲 𝗹𝗲𝘀𝘀𝗼𝗻: Most finance teams are drowning in "strategic work" that isn't strategic. It's just complex. Real strategic work has 3 characteristics: Clear link to EBITDA, cash, or exit value Measurable outcome in <90 days Drives an actual business decision If it doesn't have all 3, it's cosplay. 𝗛𝗲𝗿𝗲'𝘀 𝘄𝗵𝗮𝘁 𝘄𝗲 𝗱𝗶𝗱: Killed Initiatives 1, 4, 5, 6, 7, 8, 9. Freed up 200 hours/month. Redeployed the team to: → Working capital optimization ($800K freed) → Pricing analysis ($1.1M margin leakage) → Vendor spend review ($420K saved) 𝗧𝗼𝘁𝗮𝗹 𝘃𝗮𝗹𝘂𝗲 𝘂𝗻𝗹𝗼𝗰𝗸𝗲𝗱: $𝟮.𝟯𝗠 𝗶𝗻 𝗬𝗲𝗮𝗿 𝟭. 𝗧𝗵𝗲 𝗻𝗲𝘄 𝗿𝘂𝗹𝗲: Before finance starts any "strategic project," answer: → What EBITDA/cash/exit metric improves? → By how much? → In what timeframe? → What decision does this enable? If you can't answer all 4, don't start. If your finance team is working on strategy but you're not seeing EBITDA impact, let's audit what they're actually working on. I'll show you: → What's truly strategic (vs. theater) → How much capacity you're burning on low-ROI work → What your team could be working on instead 𝗗𝗠 𝗺𝗲.