The Fearless Business Podcast

My guest today is Mark Nicholls, Founder of the Tectona Partnership. Chartered Accountant meets Civil Engineer. Managed team of over 100 at Business Link. Co-founder of Tectona in 2012 providing an insightful and cost-effective alternative to a full time CFO.

Exeter University. 2 boys. Car fanatic. Amateur (very) cricketer. Recreational flyer. Skier. Golfer.

What we’ll be discussing today:

• What does a CFO or FD actually do?
• Covid-19 Issues faced so far. What is likely to come?
• What pinch points do we foresee?
• What are businesses doing about it?
• Keeping costs down. Are you outsourcing?
• Anyone thinking of discounting - best first understand the implications.
• Cash is tight and going to get tighter - you must plan and plan hard.
• What is scenario planning?
• How should businesses get raising finance right - first time?
• Are you straining your creditors?

Why Your Financial Foundations Matter Most

Now, here’s a secret most business owners overlook: before you sprint towards growth, marketing blitzes, or even your next shiny sales funnel, you have to get your financial house in order. Think of it like building a skyscraper, you wouldn’t decorate the top floor before you’ve poured a solid foundation.

Mapping out your financial structure isn’t just about spreadsheets or boring math (although let’s admit, spreadsheets can be fun for some of us). It’s how you gain the clarity and confidence to make bold moves. With the right financial blueprint:

• You can test “what if” scenarios safely. Wondering how raising your prices or trimming overhead might change things? Now you’ll know, before you take the leap.
• You’ll spot key levers that influence profit: pricing, sales costs, outstanding invoices. Tweak these intentionally, not randomly.
• You can weather storms. When tough times hit (and let’s face it, they do), you already know which costs you can cut or what actions to prioritize.

Imagine knowing the impact of every decision before making it. That level of control sets you up to scale your business on your own terms, without sleepless nights or unexpected crises. Bottom line? Lock in your financial structure first and you’ll build a business that supports your big ambitions instead of holding you back.

What is Mark working on at the moment?

• A "Profit Booster" https://tectonapartnership.com/profit-booster/ session with the masters.
• Help with funding applications. Outsourcing really does make sense for some businesses.

How to get hold of Mark:

LinkedIn: https://www.linkedin.com/company/tectona-partnership-limited/
Twitter: https://twitter.com/tectonapartners
Website: https://tectonapartnership.com/

What are the implications of straining relationships with creditors?

Let’s face it, stretching payment terms with your creditors might seem like a savvy short-term fix, until it isn’t. When you consistently push the boundaries, you risk damaging the trust and goodwill you’ve built up over time. Creditors may tighten your terms, cut your credit limits, or in the case of big suppliers like Screwfix or Travis Perkins, even put you on stop completely.

Not only does this make it harder to manage cash flow, but you might also lose out on early payment discounts or favourable rates you once enjoyed. In the worst-case scenario, a poor track record with suppliers can leave you scrambling for alternatives, often at a higher cost and with more hoops to jump through. It pays (quite literally) to nurture those relationships and be upfront if you hit a snag; most creditors prefer communication and a plan over radio silence and surprises.

Why Monitoring Management Information Matters

Let’s clear up a key point: no business can truly thrive in the dark. Having solid management information, think up-to-date sales figures, cost breakdowns, and cash flow forecasts, at your fingertips is what lets you steer the ship rather than drift aimlessly.

When business owners regularly review this information, they’re far better equipped to make strategic decisions. For example, if you spot a downward trend in monthly revenue, you can take action early rather than waiting for things to spiral. Or, if costs start creeping up, a quick analysis could reveal areas to trim the fat, before profits take a nosedive.

This isn’t just for big corporates. Whether you’re a solopreneur getting started or managing a growing team, tapping into management information is like having your own dashboard, with dials you can actually adjust. Regularly tracking these numbers (every month for big outfits, every few months for smaller teams) means fewer nasty surprises and more opportunities to take control.

In a nutshell, consistently using management information is the difference between strategic growth and flying by the seat of your pants. Let’s see how that plays out in times of crisis, like a global pandemic, where those who monitor their numbers aren’t just reacting, they’re planning their comeback.

How often should you review your business finances?

Let’s get real, whether you’re running a lean startup or steering a ship the size of Unilever, keeping tabs on your numbers isn’t just “nice to have.” It’s essential. The frequency? Well, that depends.

• Smaller businesses: Think of reviewing your financials as a regular health check. Every 3 to 6 months is the absolute minimum. This gives you enough information to spot patterns early, tackle issues before they become full-blown headaches, and make sharper decisions.

• Larger businesses: If you’ve got a larger operation (or just love your spreadsheets), monthly reviews are a must. In fact, the likes of Coca-Cola and Apple have entire teams reviewing key numbers every few weeks, sometimes even weekly, so nothing slips through the cracks.

Bottom line: The more often you review your financial performance, the better equipped you’ll be to steer your business with confidence. Regular, action-focused check-ins blow annual panic sessions out of the water.

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