Welcome to another episode of Mastery Fractional CFO’s Punchy Podcast, where we speak with business leaders from various backgrounds and ask them for their insights.
In this episode, host and fractional CFO expert Ryan Chenier speaks with James Kennedy, a seasoned entrepreneur and the CEO and co-founder of ProcurementExpress.com. Their discussion dives into how ProcurementExpress.com's purchase approval system helps small and medium-sized businesses (SMBs) streamline procurement processes and operationalize their budgets.
From Software to Strategic Business Tool
Procurement Express began as a simple purchase order management system but evolved into a powerful tool that helps businesses operationalize their budgets. This refers to the process of turning a high-level financial plan, like a budget or cash flow projection, into practical, day-to-day actions and controls within a business. It's about taking the theoretical numbers on a spreadsheet—like revenue targets, expense limits, and departmental budgets—and integrating them into the operations of the business to ensure those financial goals are met.
For businesses with multiple departments or layers of responsibility, it's crucial to bring everyone into the financial conversation. ProcurementExpress.com does just that by attaching names to budget line items and empowering department heads to take responsibility for their spending. This proactive approach helps prevent overspending and ensures that operational activities align with overall business goals.
Founder-Customer Fit: A Key to Business Success
Beyond the technical side of ProcurementExpress.com, James shared a valuable insight into what makes a business truly work: founder-customer fit. He believes that it’s not just about product-market fit but also about working with customers you enjoy and can truly help. As a longtime entrepreneur, James is passionate about helping SMBs and fractional CFOs manage their budgets efficiently.
“If you have a target, whether it’s to be acquired or to hit a profit goal, but it never quite materializes in practice, that’s where we step in,” says James. His enthusiasm for making financial management accessible to smaller businesses is evident throughout the conversation. For him, working with fractional CFOs is especially fulfilling because they play a crucial role in helping businesses operationalize their financial strategies.
Helping SMBs Control Spending Without the Big ERP Price Tag
One of the biggest challenges for SMBs is controlling spending without having to invest in expensive enterprise resource planning (ERP) systems. ProcurementExpress.com fills that gap by offering a solution that sits on top of popular accounting systems like QuickBooks and Xero. “For big companies, this is no problem. You go buy NetSuite, Oracle, or an ERP and spend hundreds of thousands implementing it. But there’s a gap for SMBs, and that’s where we come in,” says James.
The software allows companies to manage purchases, approve spending in real-time, and track vendor invoices. It integrates smoothly with existing accounting systems, making it easy to deploy budgets, hold departments accountable, and prevent overspending—all without the hefty price tag of an ERP.
A Unique Origin Story
James also shared a fascinating story about how ProcurementExpress.com was born. The idea came from his business partner, Rich, who was running an IT business in Dublin. Two clients—UNICEF and Clarence Cosmetics—approached Rich with similar needs for different reasons. UNICEF required a better approval process for international spend due to reputational risks, while Clarence needed to control internal spending to prevent fraud. These two stories highlighted the need for a more streamlined purchase approval system, and thus ProcurementExpress.com was created.
A Question for the CFO: Can a Generational Business Still Be Built?
As always on the Punchy Podcast, Ryan gave James the opportunity to ask him, as a fractional CFO, a question. James' inquiry touched on a topic Ryan and James both found compelling—whether it's still possible to build a generational business in today’s fast-paced world. James shared how his great-great-grandfather started a bakery that lasted 150 years in Dublin and noted that nowadays, it feels like everyone is focused on building businesses to flip quickly. So, he asked: Is it still possible to build a generational business today?
In Ryan's response, he explained that while it’s challenging, he believes it is possible, especially if you're willing to adapt and evolve with changing times. They talked about the importance of leveraging digital tools like Zoom and maintaining a flexible mindset in an environment where AI and technology continue to disrupt traditional business models. At the core of it, Ryan believes that focusing on helping others, evolving your offerings, and bringing value will always be key to sustaining a long-lasting business. It was a great conversation about the enduring principles of success, whether you're building for a quick exit or a legacy.
Final Takeaways: Evolving with the Times
Toward the end of our conversation, James offered some sage advice for business leaders: start with the problem, then find the solution. Too many entrepreneurs, he warns, become obsessed with their product before ensuring there’s a real need for it. Listening to customers and evolving your offering based on their needs is the key to long-term success.
If you’re an SMB or fractional CFO struggling to get your budgets under control, consider taking a closer look at ProcurementExpress.com. You can check out their recorded webinar tailored for finance professionals on procurementexpress.com/partners. James also hosts the Growth Profit Podcast, where he dives deep into finance topics for SMBs, from preventing embezzlement to perfecting reconciliation processes. Check it out for some valuable insights!
If you enjoyed this episode, please share it with someone in your network who might benefit from it, and stay tuned for more inspiring interviews on Mastery Fractional CFO's Punchy Podcast.
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