The Situation
In 2023, Ivan Stegic, founder and CEO of TEN7, a values-based digital agency that builds, rescues and cares forDrupal websites , was in a difficult situation. Over budget, over scope and overstaffed, TEN7 was “hemorrhaging cash.” They needed more financial guidance help than their bookkeeper and tax preparer could provide. But he had always felt that a CFO – even part-time – wouldn’t work for his nimble agency: “I always thought, ‘I don’t really need them. We’re too small, it’s going to be so expensive. How do I justify all that?’”
At the depths of their cash crunch, Ivan’s leadership team wanted more visibility into the agency’s financials. “As the owner, I just managed all of that.” After meeting with his team, however, “it was clear that we were in dire straits.”
Ivan had heard of Summit CPAs, now Anders Virtual CFOs, through his business coach and mentor. Recalling a financial workshop and an Owner Camp hosted by two Summit-turned-Anders advisors, Jody Grunden and Adam Hale, Ivan hired our firm to help navigate a difficult situation.
The Challenges
By the time Anders was hired, TEN7 had endured a 25% loss in profit, putting the agency at risk of bankruptcy. “The size of our house was too large for the amount of work we had.” Layoffs would be necessary.
TEN7’s previous bookkeepers, accountants and tax preparers had been solely focused on balance sheets and ledgers, providing a transactional relationship. After this run of bad luck, Ivan and TEN7 didn’t just need financial guidance; they also needed kindness. That’s when Anders came into the picture.
The Solution
Ivan quickly felt at home with his Anders Virtual CFO team. “They listened. They were open. The person who onboarded us said, ‘We’ll find someone that works for you.’” Jenny Betz and Kristen Reinking, a Virtual CFO senior advisor and a Virtual CFO respectively, were selected to be an extended part of Ivan’s financial team. As promised, it was a good match.
“I met Kristen and immediately clicked with her. I could tell that I could be honest and vulnerable with her, and she welcomed that. In fact,” Ivan continued, “being open and honest with her allowed her to make the recommendations she made, with the experience that she had. It was absolutely what we needed as a company at the right time.” As an owner, it was second nature to keep his financial information close to his chest but sharing that information with Anders didn’t feel like an over-disclosure; they felt like part of the team from the start.
His advisors “were very kind,” Ivan recalled, which was exactly the sort of warm-but- business-focused partnership he was looking for. During the turbulent six months that followed, he received the help he had always thought was out of reach for an agency like his.
Following his advisors’ plans, Ivan and his team began paying off the company’s debt while creating strategies to bring in more revenue. Ivan felt comfortable trusting Kristen and Jenny to handle the financials while he and his team managed what they were best at: bringing in clients and engineering solutions. Kristen and Jenny introduced a new system of cash flow management, prediction and analysis to help support them in those pursuits.
The visibility Anders Virtual CFO provided did not just offer peace of mind in his business; when a personal issue arose that required accurate financial information about TEN7, Ivan was able to confidently provide it without issue.
The Results
“The greatest impact – and what alleviated my stress the most – was cash management and cash flow prediction. Kristen and Jenny together are just phenomenal. I wouldn’t want anyone else to be handling any of that.” Although kind, Kristen and Jenny didn’t sugarcoat the situation. They simply stepped in where they needed, providing support for the agency’s finances while leveraging Anders VCFO’s industry experience with agencies. Ivan recalled being able to ask, “We’re having a cash crunch. Is this just me?” to help him benchmark his agency’s performance. Kristen was able to answer him every time, giving him a better sense of his agency’s positioning.
In 2024, TEN7 achieved a major swing in profitability, from their 25% loss in 2023 to a 10% gain. “Anders was a great part of that because they are rigorous in all the financial forecasting they gave us, in the cash flow management, in the reality checks. That swing is huge for me personally, but also for the company.”
An added – and unexpected – benefit was the way having a virtual CFO helped his relationship with the leadership team: the team got the transparency they had wanted and became stronger partners to Ivan in the process: “Finances weren’t a burden I had to carry anymore. It was something shared among my leadership team. Having that knowledge made them more invested in the solution to the problem.” With a stronger financial foundation, Ivan is free to plan for a brighter future for his agency and employees. Completely paying off their remaining debt, increasing profits and leveraging data to determine the right time to hire new employees are all within reach, thanks to a timely intervention from Anders.
“We see Kristen and Jenny as extensions of our team. We don’t think of them as just a vendor we’re buying accounting services from,” Ivan said, “TEN7 wouldn’t be the same without them.”
