#awinewith Sarah Petty
MEET Sarah, Founder of Olive Business Partners
You can find them here:
Transcript
Danielle Lewis (00:04):
Sarah, welcome to Spark tv.
Sarah Petty (00:07):
Hey, thank you for having me.
Danielle Lewis (00:10):
Very excited to share your story on the podcast today. Let's start out by telling everyone who you are and what you do.
Sarah Petty (00:19):
So I'm Sarah Petty. I am the director of Olive Business Partners. It's a advisory firm that does virtual CFO services, so we provide support in anything finance related to small to mid-tier businesses.
Danielle Lewis (00:36):
Amazing. And I see you're wearing the olive blazer. Are you just totally living the brand?
Sarah Petty (00:43):
Yeah, I think I'm a bit on brand today. That's all right. I love
Danielle Lewis (00:46):
It. It's awesome. So talk to me more specifically about a virtual CFO. So in my mind, when I think finance for a business, I have, okay, I have my bookkeeper, I have my accountant, and then a lot of times we think like, okay, you only have a CFO if you were a really big deal. So talk to me about where a virtual CFO sits in that landscape.
Sarah Petty (01:11):
Yeah, absolutely. So a lot of business owners are a bit in that mindset and not really sure whether they need a virtual CFO or not. Some have an accountant, some have an in-house finance team that might be a finance manager or a financial controller. And do they still need a virtual CFO? Some of them have nothing, and the business owners managing it all. So it is a common question of at what point do I need a virtual CFO and what value can they bring? So with a virtual CFO, we are not necessarily doing your bookkeeping or the accounting or the tax advice. The bookkeepers and the tax advisors are specialists in that, and they're great at that. What a virtual CFO can do is really help you with strategic expertise. So a number of scenarios where you might hire a virtual CFO. Some businesses start growing rapidly and get to a point that the support from their accountant just isn't quite enough.
(02:13):
So they're doing their compliance and their bookkeeping and their tax returns, but they really want to understand where are they at, what's their financial position look like, and what do they need to do to get things under control because it's just all got a bit chaotic. The other scenario might be that you've grown your business to a certain point, but then you're not really sure how to unlock that next stage of growth. And so again, you've got everything sorted in the background in terms of you've got maybe some basic reports and you've got your compliance done, but what do I do next? And that's where a virtual CFO can really help you to dig into your financials and find the insights that can help you make those decisions to unlock the growth in your business. And probably the third scenario is if you've just got some real financial challenge and you need some expertise to get through that. So a very common one is when you're having problems with cashflow. So your business might be growing, you're getting new clients on board, it might be profitable, but you just really struggle to pay the bills and cash in the bank can be really up and down and you just struggle to work out what the problem is. So a virtual CFO will have expertise to come in and assess end to end your financial position and help you get on track to make sure that those sales are converting to cash in the bank.
Danielle Lewis (03:31):
I love it. So we did a survey of all of the Spark members at the start of the year just to kind of set the tone for the year and figure out where everyone was at. And one of the questions we asked was, what is one of your biggest challenges? And cashflow was the top answer
Sarah Petty (03:47):
A hundred percent, but 80% of my conversations are about cashflow.
Danielle Lewis (03:52):
Yeah, it's just insane, isn't it? And I think that it's not until you get into business that you really see that a lot of small business owners come into business as whatever their skillset is. So maybe they're a copywriter or a service provider or whatever, and so they have that creative skillset and they're kind of learning the finance side. And I think even savvy people are like, well, as long as I'm making more money than I'm spending, surely I'll be okay. But it's just not the case when it comes to cashflow, is it?
Sarah Petty (04:25):
Yeah, for sure. I mean, I've seen the other scenario where a business has been operating for some time and always had cash in the bank, so it's not something they've even looked at. And then suddenly one day out of nowhere, a large client doesn't pay on time or they've had an unexpected expense and they haven't planned for that because they've just thought that they could rest on their laurels and it was all good. So it just becomes a real issue. And I think the other thing that some business owners don't quite understand is that even if you're getting sales through the door, it doesn't necessarily always convert to cash straight away. And there's a number of reasons for that, but you really need to have a good understanding of how to generate cash and where your spend is going in and out of your bank account, but also look at trying to forecast your cashflow because if you can foresee some of those problems that are coming up, there are options and things that you can do about it.
(05:21):
You're never in a position where it's just, I can't pay. And that's it. There's always options. There's options if you're in the panic mode to look at. And once you get through that, there's also options to look at where you can set yourself up for longer term success and make sure you've got a forecast in place, make sure you've got a really good relationship with your bank. If you do need financing, there's a number of financing options. So there's always ways to mitigate the risk, but it's important to have a good understanding and some forecasting to see where the problems may come up.
Danielle Lewis (05:55):
Yeah, I really love because, and it's interesting just hearing you talk about it as well, I feel like the value of the virtual CFO is that everyone's scenario is different. Every business is different. People have different payment terms, different products and services, different margins. So actually having someone look at your specific use case, and it just kind of makes me think, I know there's so many courses and things out there that as business owners, we try and upskill, but actually having an expert look at your use case, your scenario, your numbers is so valuable.
Sarah Petty (06:32):
Yeah, that's right. And I really do tailor the solution to the business. So to start with, when working with a new client, I'll get to know their business, their industry, their financials, and it's different whether you are a product-based business or a service-based business. If you've got a product that's a quick turnaround, or maybe you've got a product that's a big investment for someone. So all those different things get taken into consideration to make sure you've got a plan in place that works for your business, because it just can be quite different. And a lot of business owners are quite financially savvy. They do have a basic area, basic knowledge in finance. But I've spent 20 years training as an accountant, as a finance manager, and up into a CFO position that I've got this expertise that I can sort things out quite quickly. It'd be like me trying to, I don't know, be a legal advisor. I know the basics, but I'm definitely not going to pick up things that an expert would know. So yeah, it is not to say that they don't have any knowledge, but you can always get things done quicker and a virtual CFO will see things that maybe you've just overlooked, because also business owners wear so many hats. They're trying to do often a lot of things in their business and just don't have time for that focus.
Danielle Lewis (07:56):
Yeah, no, I love it. And I love even, so the cashflow is probably one of the times where people are feeling that panic, feeling that, oh my God, what do I do? That's kind of almost the negative end of the spectrum. But on the positive side, it just makes me think of, I was chatting to a girlfriend who works in her partner's business, and she's like, I just don't know how to make decisions. She's like, all I do is I look at the numbers and I'm like, I guess we're making money, but she's like, then what I'm allowed to do or what is possible or what steps should I take to hit this goal that we have?
Sarah Petty (08:33):
So
Danielle Lewis (08:33):
I love that about your role as well. Inside someone's business is, okay, what's the vision? What are we doing here? What are we aiming for? And how do we take financial steps or make decisions to achieve that?
Sarah Petty (08:46):
And my role is to provide those recommendations to the business owner or CEO. So I'm not going to tell you exactly what you should and shouldn't do with your business. Obviously it's your business and you can make that decision, but what I can do is give you, here's the two or three options that you have, and here's the risk and here's the return. And then it's up to you to be able to make that decision. And it's an informed decision rather than just a gut feel or I'm not really sure. So I won't make any decision because indecision is a decision as well. Oh
Danielle Lewis (09:20):
My God, yes. I learned that the hard way. I keep learning that.
Sarah Petty (09:26):
So yeah, a virtual CFO can kind of scale it down for you into the two or three things that might make sense for your business.
Danielle Lewis (09:34):
I love it. This is awesome. So then how did you actually get into this?
Sarah Petty (09:39):
Yeah, so I've had a career as a finance professional for nearly 20 years. I've just worked my way up through mainly in corporates and in the consumer and retail space majority of the time. So I've had quite a broad career across different finance roles from financial controller to planning analysis, all kinds of things, commercial finance, strategic projects, and worked my way up into a CFO role. And my last role before starting this business, I was CFO of a private business. And what I really like about finance is people might think you're just the number cruncher in the background, but actually to be a good finance professional, you need to build relationships. You need to be able to communicate and tell the story from the numbers and finance, whether you like it or not, is the language of business. And we're all here to make money.
(10:38):
And even I've worked with not-for-profits, and even though they're not looking to make a profit, they need to make sure they've got funding so that they can have a bigger impact in whatever cause that they're representing. It always comes back to needing to understand your financials. And if you understand the financials, you've got data to make a decision, it takes the emotion out of it and you can make a decision that makes sense. That's what I really like about being in finance and that partnering type role. And so as I was going through my career, I always thought about maybe starting something of my own, and I started talking to business owners who were exactly talking about these problems we've just been saying about managing their cashflow or not being able to make financial decisions or just not having the time to really dedicate to financial planning or understanding their financial position.
(11:32):
So it felt like there was a real need out there, and particularly in that sort of small to mid tier business. So yes, you're a large business, often you'll hire a full-time CFO, who's managing all of this for you, but for a smaller business, it can be hard to access that level of expertise. You don't necessarily want to have a full-time CFO, either you can't afford it, it's not really necessary, and you just want some advice on some key things in your business. So this way it allows those smaller businesses to access that level of expertise much earlier in their growth journey. So I felt like there was a real need out there. I've always had a bit of a creative mind, and again, sounds weird as an accountant to be creative, and I'm not creative when it comes to accounting, just to be clear, high level of integrity, don't worry.
(12:26):
But I've done things like started blogs and being on podcast and I've had a whole range of different hobbies on the side and I've done volunteering, and I just always like to have something else on the go and creating new things and working with different people. And so this was a way to really bring everything together so I can use my creativity in building the business, but also being able to utilize my expertise for business owners. So yeah, a few months ago decided to make the jump. This isn't really something that you can build on the side to be able to dedicate the time to the businesses and really learn about them, their financials and provide the right level of support and value. I had to make the decision to either go all in or put it to the side, and I'm just the kind of person that doesn't want to sit back and in 10 years time and think what if and have all the regrets. So I decided to give it a go. And yeah, I've had quite a bit of interest in the business, which is great.
Danielle Lewis (13:31):
Absolutely. And I mean, it's exciting, right? You're right. The way you described having all of those outside interests, being super creative, being a bit of a go-getter, wanting to do all the things all the time, that's like tick, tick, tick for starting your own business. What do you think has been the biggest challenge that maybe you didn't foresee when you started the business or when you thought about taking the leap?
Sarah Petty (13:57):
Yeah, so everyone told me when starting your own business, you have to wear all the hats in the business. And I was like, yeah, yeah, yeah. I've worked with all these different functions in the past. I'll be fine, I'll work it out. But I think until you get into it, there's actually a lot more to some of these roles than you think. And as a startup, I had to really focus in on sales and marketing because without clients and without revenue coming in, I'm not going to have much of a business for long. So that was a real skillset that I had to learn. And I think while I thought I knew the basics of how to go about it and I had to ask for advice beforehand and talk to colleagues and that kind of thing, my learning was that you had to be really quite strategic. And also it's important for me that I'm really authentic in what I do and how I come across. And you can sometimes get this icky feeling about sales of like, oh, you have to put on this really used car salesman kind of approach, but you really don't. I mean, your course Danielle really helped me with some of that thinking as well.
(15:04):
But yeah, my learning and talking to others who are sales professionals, it has to be strategic and you can do it in your own way. And I am a more introverted personality. I'm not an extrovert. I'm not naturally a great small talker and schmoozer, but you don't have to be is what I found. As long as I can be strategic about it and I'm coming across authentically and I'm really selling a service that can help people, it's not selling something that I don't believe in. I actually really believe in this, and I really believe that I can make a difference with these business owners. So that's helped, but being a big learning in how to go about the sales and marketing side of it.
Danielle Lewis (15:44):
Yeah. Oh my god, I absolutely love that you said that. So I had a person book time in my diary to ask about my sales coaching yesterday and look, it happened to be a male. And I was like, this is odd. But anyway, considering how sparks so female led, but whatever, with the one-on-one sales coaching, I don't mind so much,
Sarah Petty (16:05):
But
Danielle Lewis (16:05):
They were like, I want you to teach me how to be a closer. I want you to teach me that. I was like, I don't think I'm the right person for you. I was just like, this is insane. I was like, no. My whole philosophy is relationships, being interested in what people are doing and believing in what you sell. And if it doesn't work out, just talk to another person. I was literally sitting there going, wow, this is literally the reverse of what I teach everybody. So I love being said that you are spot on if you show up authentically you and you do come from a position of service, and I really believe in what I do and I can add value, and I really can actually transform your business or your way of thinking. That's the magic with sales, I think.
Sarah Petty (16:55):
Yeah, definitely. And I had a few people recommended different sales books to read as I was getting my head across it. And one in particular, I started reading it and it was just about how to crush your competition. And the language is so aggressive. I almost felt like just reading the book, I had to put it down, but there's a lot of other material out there that doesn't talk like that. And as I say, it's more about building the relationships and a lot of my clients are coming through people in my network, and sometimes it's someone knows someone who knows someone who knows someone, but it's because of all of those relationships that it works and the trust is built up. So yeah, I mean, I just feel like in anything, in any job that you're doing, if you're coming across as authentic and you really believe in what you're doing, that's the way to go about it. I don't think you need to create any fake persona of some aggressive sales closer that would drive people away.
Danielle Lewis (17:58):
Totally. And I just feel like, how weird would it be to, he was talking about, because if you learn sales from a book, there are techniques, different closing techniques and different things to say. And he was listing off all the names for these techniques, and I was like, no, don't do that at all. That's why it's not working what it is you're doing. So I do love that. I really do believe, and I think women are a lot better at this, at actually tapping into our authenticity. And I think sometimes we swing too far in the direction of, I don't want to sell and I don't want to talk about anything, but I feel like if you find that middle ground that is what I'm doing is of great value, if I don't tell people about it, I'm actually doing them a disservice.
Sarah Petty (18:42):
Yeah, definitely. It just reminds me of this story of, so when I was, I dunno about 18 and studying at uni, I used to work in a clothing store and a retail store, and they gave us sales training, which was like this very American seven step approach to training. And when a customer came into a store, you had to schmooze. That was the word that they actually used. You had to schmooze them, you had to talk to them. And so many times when I went and tried that, because it's not my thing to just keep asking questions, and when you get that really annoying salesperson in the store who just is on your back and you're like, please just leave me alone, it would drive them out the store. It just didn't work because it just wasn't me. Yeah. Anyway, I learned a lot since then.
Danielle Lewis (19:30):
No, totally. But it's so funny, literally, so I use the example of bad selling as the used car salesman. We all have that idea in mind, but also that retail shop girl who's following and you're like, I just need to leave this store right now. Whoever's teaching these people these things, seriously, what the heck? Oh my God, that is hilarious. I love it so much. If someone is in their small business right now and they're feeling funky about their finances, do you think that there's a catalyst for bringing in a virtual CFO? Or do you think it's always just start the conversation and see if it's right for
Sarah Petty (20:08):
Them? I would start the conversation. I mean, if you're having any doubts, absolutely reach out. Look, sometimes your accountant can provide you a bit of advice that will be enough to get by, and that's fine too. But if you're really not sure, I mean reach out because there's no harm in having that initial discussion. If you find it's not for you and the service isn't quite right, then that's totally fine. But I think you would rather want to know and see what's available and what support is out there. Because I get asked the question a lot of, well, do you really need a virtual CFO? Or can I just get by until the point when my business is big enough to hire that full-time, CFO? The only thing I'd say to that is, well, there's not many businesses that have actually been successful in scaling up without having a CFO to support them through that.
(21:02):
So if you can get that help earlier in your business journey, you can make decisions and you've got that expertise there that you don't have to learn the hard way. You can actually get someone to give you that advice and help you earlier on. So yeah, if you're thinking about it, if you're worried about something, if you're just not really sure where your finances are at, reach out and get some peace of mind. And it might be that you're okay and you can get by for a little while and then reconnect at a later date, but I think you'd always rather know.
Danielle Lewis (21:35):
Yeah, and it's so interesting that you say that. I often hear people say, when I get to X, I will do these things. And I was like, well, maybe you'll never get to X because you're not doing those
Sarah Petty (21:45):
Things. Yeah, exactly. Yeah, I mean, I probably felt the same as I was starting out my business, and especially when you're a startup and you don't have much money to start with and you've bootstrapped it. So I kept thinking like, oh, maybe I can get by with trying to write up a legal contract or not getting some support on my marketing message. But honestly, I think paying for those two things just helped me to hit the ground running. Otherwise I'd be spending weeks just going back and forward and not really getting anywhere. As you say, you can't necessarily get to that level unless you're getting the support. So yeah, I thought it was worth investing in those experts upfront.
Danielle Lewis (22:29):
Yeah, I love it. I think that sometimes we need to reframe expenses versus investments and just kind of think about what we're actually going to gain from the experience. I love it. You are amazing. Sarah, I always love to wrap these podcasts with one last piece of advice. So reflecting on your time in business or even your career beforehand, what would be one piece of advice that you would give to other women in business on their journey?
Sarah Petty (22:59):
Well, probably on theme to what we've been talking about, but my one piece of advice would be not to let other people define you or your business. So as I was starting out, I got so much opinions advice from people saying, this idea may not work, or There's so many businesses fail, I hope you're ready not to have any life anymore. All kinds of things. I mean, I got some great advice too, but I think the main thing was that I believed in the idea and I believed in myself. And I think that clients want to work with business owners who believe in themselves the same way that employees want to work with leaders that believe in themselves. So yes, listen and take some advice, and you do need some advice to get better and all of that, of course. But if someone's putting down your idea and you are really believing in it, don't let that define you or change your path. Stick to what you really believe in. And I think if you are fully behind it, then your clients will be too.
Danielle Lewis (24:05):
Oh my God, I love that so much. Seriously, the unsolicited advice that pops out of the woodwork. I did hear a really great thing from someone once that even when people are being a bit down on things, they're doing it because they don't want you to fail. They don't want you to experience pain. They are actually coming from a good place. But I think the way it translates for anyone who's a bit of a go-getter is like, what? No, I can do it. This is a good idea. Get off my back people.
Sarah Petty (24:35):
And it's also some people, as you say, it's coming with good intentions, but they don't actually realize all the planning and all the thinking and all the research you've done beforehand, and they're hearing this idea for the first time. You're in very different stages. So yes, listen, it's really up to you back
Danielle Lewis (24:57):
Yourself. Yeah, totally. And that's funny, you just made me think as well, people who haven't done it before, so people who are saying these things often haven't done what you want. So of course they'll be like, oh no. How could that work when it's actually, well, actually, I'm just going to listen to the people who I know have done or walked the path that I would like to walk.
Sarah Petty (25:19):
Isn't that the, I'm going to totally get this wrong, but the Brene Brown quote around,
Danielle Lewis (25:24):
Oh yes,
Sarah Petty (25:26):
Don't listen to the people who haven't been there before. And I think it's in a daring greatly book
Danielle Lewis (25:32):
Favorites. You are right. And it's like, unless they're in the arena getting something like that, getting crap kicked out of them. Exactly. Everyone read that book. Oh, I love it. You are the best. Thank you so much, Sarah, for spending time with the smart community today. So good. Love it.
Sarah Petty (25:52):
Absolutely. Thanks so much for having me on.
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