106 Founder finance fails and how to fix them with James Segal of Fin-house

The EIS Navigator

James Segal cofounded finance-as-a-service house Fin--house and has seen the inside of many startups. His post on 24 founder fails caught my eye, so we asked him onto the podcast to discuss them in more detail.

In a wide ranging discussion we talk about:

• scaling too quickly
• forgetting about accounts receivable
• the importance of modelling and stress testing
• confusing cash flow with profit
• over-optimising for short-term gains
• misinterpreting break-even point
• misreading profit margins
• what James sees in companies when he starts with them
• when you need a CFO

James's experience from working with many small companies means he has seen all of these and more so he brings great insights. Enjoy!

00:56 James introduces himself

02:00 what Fin-house does

04:50 scaling too quickly

06:30 forgetting about accounts receivable

10:00 importance of modelling and stress testing / scenario planning

14:15 confusing cashflow with profit

17:20 over-optimising for short-term gains

23:45 misinterpreting break-even point

28:00 elasticity of CAC

30:45 misreading profit margins

34:00 how are companies when you first go in to them

40:00 difference between a CFO and financial controller

44:00 when do you need a CFO?

49:20 favourite questions

Links

Fin-house - https://fin-house.co.uk/

James on LinkedIn - https://www.linkedin.com/in/james-segal/

24 founder fails (LinkedIn) - https://www.linkedin.com/posts/james-segal_24-founder-finance-fails-activity-7254107025771565056-vZeO?utm_source=share&utm_medium=member_desktop

Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listen

Suggested books and media

Good to Great by Jim Collins

Bio

James Segal

Co-founder, Fin-house

James Segal is the co-founder of Fin-House, a company specialising in providing flexible, in-house finance teams tailored to the needs of startups, scaleups, and SMEs. Founded in 2021, Fin-House supports businesses through their growth journey by delivering finance functions that evolve alongside them, integrating seamlessly into their operations.

Prior to starting Fin-House, James held finance leadership roles at Benchmark Sport International, Decathlon, and SynergyMode. He is a Chartered Accountant with the ICAEW and holds a BSc in Accounting and Finance from the University of Leeds.