From Startup to Success: FixturFab’s Journey with CFOshare
FixturFab, a startup founded by engineers Joe Selvik and Duncan Lowder, embarked on a journey to transform industrial circuit fabrication with their innovative software. With no prior business ownership experience, the founders faced numerous challenges, particularly in managing their finances while transitioning from the floundering SaaS startup to a thriving high-tech manufacturer.
This case study explores how CFOshare played a crucial role in helping FixturFab navigate its startup phase and grow into a successful enterprise.
Challenge: From Software to Hardware
“When we first started, we thought we were going to sell a subscription to a software tool,” Joe recalls, back when his business was literally run from a garage. However, he quickly realized the real opportunity was using his software to rapidly fabricate fixtures. Before long, he was running a full-fledged manufacturing workshop.
“And then we realized, oh, we own a manufacturing startup now. Not a software startup.”
Although revenues were growing, this transition created new financial problems to grapple with: procurement, inventory management, cost accounting… the list was overwhelming. Joe recognized their need for professional financial guidance to manage their seed investment responsibly and ensure accurate financial reporting to their investors.
CFOshare Supports a Startup Business
Joe first heard about CFOshare through the Denver business community. Intrigued by CFOshare’s offerings, they reached out for help with their bookkeeping needs. Joe liked how the services could evolve to fit the changing business needs. “It’s really nice to be able to grow services from very basic bookkeeping to now having a controller dedicated to our team and some staff who works on AP.”
Aaron, a Fractional Controller, worked closely with FixturFab. Aaron’s expertise was instrumental in several key areas:
1. Financial Reporting and Accuracy:
Joe feels confident sending quarterly financial reports to his investors knowing they were prepared by professionals and checked himself. “Aaron and I meet every Friday, so I know it’s accurate.”
2. ERP System Transition:
CFOshare facilitated the transition to the Odoo ERP system, crucial for managing FixturFab’s growing manufacturing operations. “Aaron was part of the special team that implemented it… making sure that everything was accounted for and set up for success for the next stage of our business.” Aaron held the ERP consultants accountable to the financial needs of the business, ensuring no corners were cut.
The ERP system helped FixturFab systematically automate the complex transactions of the accounting process, providing clearer insights into their costs, assets, and operations. Joe explained, “Before the ERP, we were never able to answer basic questions like, ‘What are your assets now? What is your inventory valuation?’ All the basics that we should be thinking about.”
3. Educational Support:
“I really liked how much effort Aaron and everyone at CFOshare put into educating us on how to be founders and account for the business in the right way.” Aaron’s team did more than just close the books – they consulted with Joe to ensure he understood the numbers and processed the knowledge into better business management. This support was pivotal in helping them think about their business in a more sophisticated way.
Results and Impact
The collaboration with CFOshare yielded significant benefits for FixturFab:
- Improved Financial Management: FixturFab could now accurately account for inventory, assets, costs, and other financial metrics, which were previously challenging.
- Business Growth: With a solid financial foundation and the ability to scale services, FixturFab was able to grow its operations confidently. Joe remarked, “Working with Aaron has been a fundamental change of the business for the last year and a half.”
- Evolving Support: The relationship with CFOshare evolved from basic bookkeeping to a full accounting team plus forecasting services. Joe emphasized, “Being able to start with some low-hanging fruit and scale up into the full fractional portfolio was crucial for us.”
Growth through Teamwork and Collaboration
FixturFab’s journey from a startup to a successful manufacturing business was greatly supported by CFOshare’s flexible and scalable financial services. The education and hands-on assistance provided by CFOshare not only helped FixturFab manage their finances effectively but also empowered them to grow and adapt their business model. This case study exemplifies how CFOshare’s expertise can transform startups into thriving businesses by offering tailored financial solutions and ongoing support.
If you’re ready to talk about how we can help level up your business, make an appointment today to speak with a fractional CFO.