#74 She Doesn't Wear a Cape or Fly, but She's a Real Superhero - Sarah Delevan, The Good Food CFO

Meaningful Marketplace Podcast · #74 She Doesn't Wear a Cape or Fly, but She's a Real Superhero - Sarah Delevan, The Good Food CFO

I was recently invited to join Sarah Marshall and Sarah Masoni as a guest on their amazing podcast, The Meaningful Marketplace and had a great time discussing MY JOURNEY TO BECOMING A GOOD FOOD CFO, MY APPROACH TO FINANCIALS + WORKING WITH MY CLIENTS, AND OF COURSE…all things food business.

If you’re a good food business owner and haven’t listened to their podcast, stop what you’re doing and listen right now!

A little bit about Sarah and Sarah:

Sarah Masoni of Oregon State University's Food Innovation CenteR:

Masoni's mission is to help food entrepreneurs take their product to market successfully, or give them the tough love news that their product isn't ready for prime time. Masoni has an amazing palate that has guided many companies through the maze of going from the kitchen to the mass production process that gets the product to the consumer's table. She's interested in real food, ethically procured and processed with a fabulous taste and she's very straightforward and candid with her clients. A speaker, sought after panel member and budding author, Masoni considers herself "CEO to a thousand food companies", because her candor and integrity has the ear of the C-suite when they need to hear the truth about their food products.

Sarah Marshall founder of Marshall's Haute Sauce:

Sarah’s passion for canning bloomed when she was a social worker in the Portland, Oregon area. The work was emotionally tough, and canning food at home became her therapy. As she canned more and more, she began teaching others. And she started creating sauces for the children she oversaw. Since many were on the "spectrum", she had to pay special attention to avoiding additives, so her penchant for pure, fresh food took hold. Her recipes reflected this philosophy and became the blueprint for her future products. Taking business classes while still a social worker, Marshall considered a food cart at one time, but decided to can and distribute her sauce instead. Now, her company is a certified kitchen in her home where she, husband and daughter have made a life doing what they love.

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program and host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

I love time-saving apps and tools. 
I am in full support of efficient systems. 
But...

If what you are doing now isn’t creating a profitable outcome…
Doing it more efficiently is only going to get you the same outcome faster.

YES, Implementing tools + systems are a BIG part of how I help business owners achieve their profit goals.
But it’s the FINANCIAL STRATEGY that matters the most. 

Without a clear set of goals + a strategy for reaching them
tools can ONLY help you be more efficient, not more profitable. 

In this video I’m sharing:

• The 2 things you MUST do before shopping for tools, apps or software

• My ‘Before You Buy’ Checklist

If you’re thinking about making a software purchase be sure to watch. 
If you recently made a purchase and are having buyer's remorse, there is value in this information for you too! 

Looking for low-cost helpful tools to build your profitable food business?

Checkout our Financial Success Toolkit and be sure to visit the Tools + Resources page for more of our favorites!

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

"Setting your prices to achieve product profitability does not guarantee that you'll achieve business profitability."

I was recently invited to host a webinar to discuss how to price products for profitability on WeStock™

If you haven't heard of WeStock™ now is the time to check them out, but not before you know how to price your product for profitability!

“WeStock™ helps your brand grab the attention of buyers, increase sales for underperforming stores, and ensure that you own the customer journey for your brand in retail. WeStock converts customers that love your product into authentic and actionable data that helps your brand get on shelf and stay there.”

Attend the pre-recorded webinar and learn how to price your products for business profitability!

In the webinar We cover:

• The "Accounting"

• Common Misguided Approaches to pricing

• Potential problems and outcomes of using incorrect pricing methods

• MY 3 Rules for Pricing

• Steps you can take to ensure that you've got your products priced for Business profitability

Click here to watch now!

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

It’s common for good food business owners to calculate their perfect product price, only to find that it’s higher than they think they can, or should, sell it for.  (So many emotions!)

Doubts often follow as to whether or not you can successfully sell your product at a premium price, or whether the right move is to lower costs so you can sell at a lower price point.  

To help coach you through this decision making process, I spoke with CPG Consultant and founder of Retail Ready, Alli Ball to discuss the steps to making this important decision, and how you CAN build a successful food business with a “high priced” product. 

You can listen to our conversation here, where Alli shares:

• Why looking to your target market is key to landing on
  the right price for your product

• 5 Key Brand Questions to gain clarity on pricing decisions 

• The freeing truth that Everyone is not your target audience

If you decide that lowering your costs is the right move for your business. 

You’ll definitely want to tune in to this video, where I share Strategies for Lowering Your Costs WITHOUT Compromising Your Standards or Quality. 

As always, I’m here to support you as you work through the math and the decision making process. 
Join other food business owners doing this work in the free community. 

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

Our personal money mindset and financial beliefs find their way into our businesses and can affect how we deal with our finances…

from pricing, to how much we pay ourselves, to how much we pay others,
and so much more.

If you find yourself…

• Resisting raising your prices, even though you KNOW you should be charging more 

• Paying yourself at an hourly rate that’s less than what you pay your team
  (or not paying yourself at all)

• Cutting yourself a check each month but NEVER cashing it

KNOW THIS: You are not alone. 

And there are steps you can take to recognize and overcome your limiting money beliefs that are creating barriers to your financial success.

Financial Coach and Founder of Verdi Advising, Caroline Snyder joined me on The Good Food CFO podcast to discuss these and other ways that our money mindset, financial stories and emotions can play a role in our financial decision making.

But that’s not all - She also shared how we can recognize our emotions and overcome the barriers they create. 

If you’re a food business owner that: 

• Feels anxiety, hesitation or fear around the money matters of your food business

• Struggles to raise prices even though you know you need to

• Hasn’t paid yourself, or are paying yourself a meager wage for all the hard work you do 

You’ll find a ton of value and actionable steps to help you understand your money mindset, recognize your fear and emotions, and move forward successfully.

Listen to the full episode here. 

Then join us in the Profitable Food Business Community to share one of your takeaways.

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

We all know that the quickest way to achieve our goals is to have a plan.

You identify where you are right now, and where you want to be.
Then you connect the dots and detail the steps for getting from point A to point B. 

Except when you’re running a growing food business, it’s not quite that easy... 

You’re likely implementing multiple strategies to achieve your business objectives - most or all of which will cost money to implement - and you’ve got your eye on increasing sales. 

There are a lot of people, information and money to manage! 

Profit Planning helps you see the big picture of your business and keep you on track to reaching your goals. 

Here are just some of the ways that Profit Planning can benefit you in your business: 

1. Helps you get clear on your business objective and goals (if you haven’t already). 

2. Allows you to see if increased sales, decreased costs, or both are your keys to higher profitability. 

3. Helps you establish what the right monthly sales target is for our business.

4. Provides a baseline + the ability to monitor your progress toward your goals, as well as the success of the strategies + tactics you've implemented. 

5. Enables you to get detailed on how you’ll grow sales (and the costs associated), get clear on when and how to hire, what your cash runway forecast looks like, and allows you to run financial scenarios to assist in decision making.

Inside the Profitable Food Business Community we’re talking about Profit Planning and how to set the right goals for your business.  In fact, the first Tuesday of every month I do a LIVE Q+A session to answer your questions and support you on your Food Biz Financial Journey! 

Join the community and our next Q+A session here

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program and the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

Did you know that in January 2020 I transitioned from project-based work to 12-month programs? 

The decision came after working with several clients in 2018 and REALLY wanting to stay connected to them, to their progress and their business outcomes.  I had a hunch that long-term working relationships could produce better results (and that I’d like that type of work better too). In 2019 I continued my project work, and started beta-testing 12-month programs/services. 

The longer programs allowed for consistent check-ins, accountability and support that produced better financial and business outcomes for my clients, and gave them confidence around their numbers and decision making that simply couldn’t come with shorter project-based work.

In December 2019 I made it official and announced the new service. Two business owners signed on right away and worked with me monthly throughout the year. 

Additionally, in late February, our first member began the Financial Success Formula Program. 

Last week I compared the 2019 vs. 2020 financial outcomes for these 3 businesses, and… 

The results are pretty incredible! 

Some facts about the businesses:

1. 1 is a CPG brand utilizing a co-packer, 2 are food producers selling wholesale and direct to consumer

2. They are all young brands with 2019 annual sales between $60,000 - $140,000

3. 1 producer had consistent revenue across both years, the other two businesses had revenue growth of $95k and $172k.

4. ALL businesses had individual profit margin increases of 18% or more! 

The Stats! 

Average Revenue Increase 2019-2020 across all three businesses: $89,120

Average Year over Year Revenue Increase: 86.7%

Average Reduction in Cost of Goods Sold: 10% 
(from 48.64%-38.18%)

Average Profit Dollars earned:
2019: -$1,080.78
2020: $52,582.25

Average Profit Margin:
2019: -3.09%
2020: 23.80%

Average Year over Year Profit Margin Increase: 26.88%

I am looking forward to tallying new data each month as additional members complete their 12-month programs!

An important note:

2020 was not without its hardships, and Sarah Delevan Consulting saw clients and members struggle due to Covid-related restrictions and the harsh effects of the wildfires in Northern California.  A few members of our community closed their doors, moved their families, and paused to sort out IF and when they could return to business and what that business would look like. 

So much of what happened last year was out of their control, and it’s important to me that we acknowledge that as well as celebrate the successes of these three business owners.  

This data provided within this post is based on three business owners that actively worked with us monthly throughout 2020. 

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

Have you heard business coaches say things like… 

“Cutting out your lattes and brunch isn’t gonna suddenly increase your savings account. Instead, I want you to recognize your ability to earn a whole heck of a lot more.”

It’s true that cutting out lattes won’t suddenly increase your savings… but cutting out those lattes (like getting rid of unnecessary expenses in your business) might be a good idea if you’re struggling with cash flow. 

For the record - I love business coaches, and have one of my own. But as a financial consultant, I want to assure you that understanding + controlling expenses, and striving to earn more revenue, are not mutually exclusive

We've been taught to believe that bigger is better, that selling more is the main objective, and that at a certain point all that revenue WILL result in profits. But it's simply not true.

If your million dollar business has million dollar expenses, hitting that sales goal doesn’t mean anything.

Stories of start-ups with tons of funding and BIG sales numbers that never turned a profit are not uncommon.  Emerging food businesses forced to close their doors despite having amazing products + ravenous fans is the primary reason I do this work! 

As CPA Melissa Houston and I discussed in Episode 2 of The Good Food CFO Podcast…

“A 1% savings in one area of your business

can amount to a lot of dollars on your profit line... 

When you know that, and you can implement a small change that creates that 1% savings, the results can be really, really big.  Making small financial changes can really add up!” 

BIG revenue does not mean business longevity. 
Consistent profitability + financial sustainability does.
And that comes from understanding and controlling your costs now, and as you grow. 

If you’re ready to take the next steps toward understanding your numbers, gaining confidence in your financial decision making, and achieving consistent profitability we have tools + resources to help you do it.

1. The FREE Profitability Roadmap will help ensure that you’ve got a solid financial foundation in place.

2. The Financial Success Formula Program will help you understand your business financials, see the road to profitability, and create the Profit Plan that will help you get there.

And of course, the Profitable Food Business Community is always open! 

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

The work of building a successful food business isn’t glamorous…

Talking about numbers isn’t sexy... 
Photos of spreadsheets on instagram don’t garner a lot of attention...
The work that I ask business owners to do is not glamorous, but it’s required to build a profitable business.  

I know it’s fun to think about branding + marketing, to interact with your customers, to score a new wholesale account. And all of those things are important for a successful food business!

But the reality is that you can’t achieve your long-term business goals without financial sustainability + profitability. 

I meet food brands all the time that have stellar sales months… matched by BIG losses.  
I don’t want that for you!

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if we’re going to change our food industry, we’ve got to build sustainable good food businesses. 

WE CAN build financially sustainable businesses By cultivating a mindset of CONSISTENTLY reviewing your data, correctly identifying inconsistencies, and creating strategies to correct them.

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The more you get acquainted with this mindset, the easier the work becomes, and the less stress you have around the money in your business.
It’s not glamorous, but it’s how you reach your goals. 
Ready to get started? 

Download the free profitability roadmap, join the Free Profitable Food Business Community, and let’s go!

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

reaching your financial goals means getting clear on your business objectives.

Here are 3 Steps for Setting + Reaching Your Business Objectives,
no matter where you are in the life of your business:

• Set the “right” Business Objectives

  If you’re concerned about setting the right objectives for your business, think back to when you launched.
  
  What did you set out to create?
  What did you dream your business would become?
  
  If that’s still a viable goal for your business or your brand, keep at it and set the business objectives that will support your progress in reaching those goals!
  
  If you weren’t really sure what you set out to create with your business, or what you wanted to achieve, spend some time to create a vision for your business that excites you.
  
  Looking at your financials can be helpful in determining the most viable options for your business and can help shape your goals and objectives.
  

• Get detailed about the strategies and tactics you’ll implement to reach your objectives.

  Once you’ve got your objectives, get detailed in breaking down how you are going to reach them. 
  
  Businesses that don’t get this detailed and don’t track their progress over time are more likely to lose focus, and hop around from tactic to tactic, chasing short-term wins rather than a clear path to long-term business success. 

Following the chart above, take these steps… 

1. State your business goal  

2. Set 1-3 measurable Business Objectives that will help you reach your goal. 

3. Drill down from your objectives to identify 1-3 strategies for reaching each of your objectives

4. Then determine the actions you + your team will take and/or the tools you’ll implement to successfully execute those strategies. 

•  Track Your Progress to Ensure Your Success

Once you’ve got your objectives, strategies and tactics identified, it’s important to track your progress.  

You can do this within your Profit Plan or create a KPI dashboard (aka spreadsheet). 

Be sure to document where your business is now, as well as your target. 

Determine how often you’ll track outcomes - daily, weekly or monthly - this will vary among tactics and strategies. 

And then stay consistent. 

If you’d like support in this process, or in achieving your objectives I invite you to visit our website to view the multiple levels of services we provide to assist you in setting + Achieving your business objectives.

Visit our website to learn more. 

AND OF COURSE, THE PROFITABLE FOOD BUSINESS COMMUNITY IS ALWAYS OPEN! 

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. She is also the host of the Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

I get excited when business owners ask “when is the right time to start paying myself?” because it means you’re actually thinking about it!

Many founders launch their food business with the expectation and belief that they will go unpaid for at least a year and that’s just the way it’s supposed to be.

Most go unpaid for much longer and have no plan in place for when, how or how much they’ll pay themselves in the future.
They simply aren’t thinking about paying themselves - even if they want to, the belief that they shouldn't or can’t, prevents them from really looking into it and taking action.

Does that sound like you? (It was 100% me, about 8 years ago)

One of my top priorities as a financial consultant is getting food biz owners paid! because you don’t truly have a financially sustainable or profitable business unless you’re paying yourself a fair wage.

There is no one-size-fits-all approach to this, but here are a few options to consider:

1. Pay yourself the same hourly rate as your employees.

   This is the approach I take in my business. It forces me to pay myself for my time each week and ensures that there is money left over in the business each month for reinvestment, growth, etc. I sweeten the deal by setting a monthly profit goal - if we achieve it I pay myself a bonus + my team gets one too!

2. SEE how paying yourself your dream salary will affect your business Financially. You may be surprised to find that you CAN afford your dream salary now!

   If you can’t afford that dream salary just yet, how many more units per month would you need to sell, or what other costs could you cut to make it a reality?
   
   If you can afford 50% or some other portion of your dream salary now start there. Then create a plan to increase sales or reduce costs, and increase your salary when you achieve certain milestones.

3. Record an In-Kind Donation to your business for your unpaid time

   If you can’t pay yourself for your time just yet, or can only pay yourself a little bit (there was a point in my food biz where I paid myself just $100/week), Financial Coach Caroline Snyder of Verdi Advising recommends tracking your unpaid time as an In-Kind donation to your business.
   
   Snyder agrees that it’s OK to not pay yourself so long as you have a plan in place for how and when you will start. And she says that tracking your time as an In-Kind donation (although it doesn’t actually affect your business financials) helps you see the value you’re giving to your business each month.

Do you have a method for paying yourself, or tracking your time that you’d like to share?

Join us in the Profitable Food Business Community and tell us all about it!

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

Do you find yourself feeling overwhelmed in your business sometimes? Pulled in many directions and unsure where to focus your attention?

If you answered yes, odds are that you’ve either lost sight of your business objectives, or you don’t have one.  

It’s possible Covid-19 played a role in this, but its also possible that you started a passion project and now that it’s off the ground you need to figure out where you want to take it and how you want it to grow. 

Knowing your business objective(s) is key to:

• Identifying the right goals for your business

• Creating a clear plan of action for yourself + your team

• Focusing your time + attention where it will have the most impact, and 

• Ensuring that you are spending your money wisely

Hello, clarity + focus! 

When we think about how clear business objectives help us spend our money wisely, the list is nearly endless.  From the tools + services you choose to invest in, to the marketing strategies you implement, if and how you grow your team, etc. 

So, what IS a business objective? 

Simply put, it’s a specific target or group of targets you want to achieve within a stated time frame.  

Some examples of business objectives include:

• Increase Wholesale Revenue by 25% this year

• Improve Overall Profitability 10% within 6 months

• Capture 5% of market share by quarter 3

• Double our return customer rate this quarter

With your objectives identified, you can get to work on identifying HOW you will go about achieving them - the strategies + tactics you will implement in your business. 

And when you stay focused on your objectives and track your progress, focusing your time and making key financial decisions becomes easier. 

Need help identifying + achieving your Business Objectives?

If you need help identifying the right business objectives to build a financially sustainable + profitable food business the “Know Your Numbers” template can help you see your business and the areas to focus on to improve financially.  

The template is available in our toolkit, workshop + online program. Click here to find out which resource is right for you!

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.