E26: Breaking Down Annual Planning

Today we're flipping the script: CJ is the guest, and he's demystifying annual planning on The Role Forward podcast. CJ and host Joe Michalowski dive into the intricacies of annual planning, the practical steps of strategic planning (breaking down the process into digestible stages), and the complexities of financial forecasting in the startup ecosystem. Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line, head to www.tropicapp.io/metrics. CJ's insights offer valuable lessons on balancing ambition with the realities of startup finance, providing a blueprint for listeners navigating their own annual planning. --- ! Run The Numbers has a new Spotify and Apple show link. Follow the links to subscribe and ensure you'll never miss an episode  Apple: https://podcasts.apple.com/us/podcast/run-the-numbers/id1723787140  Spotify: https://open.spotify.com/show/0zQCkklNnVgMD364kCW5SV --- SPONSOR: Tropic Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line. By combining approval workflows, supplier management, and pricing benchmarks all in one place, Tropic makes savings opportunities easy to find and act on. 🌴 Visit www.tropicapp.io/metrics to learn how. --- LINKS: The Role Forward Podcast: https://www.mosaic.tech/the-role-forward --- X / TWITTER: @itsjoemic (Joe) @cjgustafson222 (CJ) @MosaicTechInfo (Mosaic) @TurpentineMedia (Turpentine) --- TIMESTAMPS: (00:00) Intro (02:30) CJ's Journey to CFO (03:54) The Annual Planning Process (10:09) Sales Capacity Planning (15:25) Sponsor: Tropic  (18:37) Planning for Different Business Models (20:33) Marketing Planning and Budgeting (25:56) The Importance of Budgeting in Marketing (25:55) The Value of Contractors in Startups (26:37) The Role of Finance in Business Operations (27:10) The Impact of R&D on Business Growth (27:30) The Strategy for Planning Out the Rest of the P&L (27:36) The Significance of Headcount in Tech Companies (28:45) The Importance of Team Size in Business Planning (28:48) The Role of R&D in Product Development (32:16) The Process of Balancing Growth Plans with Investments (33:32) The Pitfalls in Budgeting for Non-People Costs (36:37) The Process of Bringing Together a Unified Plan (41:57) The Role of Finance Tools in Business Operations (45:00) The Importance of Listening in Finance This show is produced by Turpentine: a network of podcasts, newsletters, and more, covering technology, business, and culture — all from the perspective of industry insiders and experts. We’re launching new shows every week, and we’re looking for industry-leading sponsors — if you think that might be you and your company, email us at [email protected].