Building a Profitable Business: Advice from a $400 Million Brand Founder
Release Date: 02/24/2025
The Good Food CFO podcast
Your inventory numbers are telling a story - but do you know how to read it? In this episode, Sarah answers listener questions about inventory turnover ratio - the metric that reveals whether your products are converting to cash or quietly draining your resources. She shows how to turn a confusing ratio like "2.75" into clear insights - that inventory turnover ratio means it takes your business 146 days to sell through the product on your shelves. The eye-opener: Sarah shares how a rapidly growing meat company with impressive revenue was hemorrhaging cash because they had eight months of...
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What happens when you choose to 'control your growth' instead of racing to expand? Sarah sits down with Ilay Karateke, co-founder and CEO of Bezi, the labneh brand redefining growth through meticulous data collection and strategic expansion. Ilay shares her unconventional approach: launching direct-to-retail in handpicked New York stores, doing her own distribution, and running 5-10 demos weekly while tracking every data point. Every retail partner and expansion move is calculated to maintain profitability while building brand equity. The conversation reveals practical strategies for...
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You asked, Sarah is answering! We love these listener Q&A episodes, and today's cost of goods sold questions are absolute gold. First up: When Google gives you two different definitions for the same term, which one should you trust? Sarah breaks it down and explains gross profit margin vs. net profit margin and which should be your starting point for healthy food business cash flow. Then, we hear from a food founder who thinks they're "double charging" themselves for labor. Spoiler alert – they're not, but Sarah's explanation about theoretical COGS versus actual P&L numbers will...
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Ever wondered why finding a co-manufacturer feels impossibly difficult? Sarah sits down with Julia Megson, CEO of ReScale, who reveals the shocking reality that co-manufacturers receive about 100 inquiries monthly but only work with one to two brands from that entire pool. Julia's unique background – from auditing over 100 contract manufacturers at Trader Joe's to founding a tech platform specifically for emerging food brands – gives her unparalleled insight into what actually works in co-manufacturing partnerships. She breaks down why this process is more like sales than shopping, and how...
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In this eye-opening episode, Sarah breaks down the harsh food distributor chargeback reality that many founders don't discover until it's too late. Using a real-world example of a brand that invoiced KeHE for $68,267 but received only $13,345 (just 19.5%), she dissects exactly where that money went. From the surprising "initial PO" payment policy that can delay your first check for 3-6 months, to the specific chargebacks that consumed 80% of a brand's revenue, Sarah provides the financial transparency food entrepreneurs desperately need before signing distribution agreements. The episode...
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Ever wonder how a food business thrives for four decades without compromising on quality? Sarah sits down with culinary visionary Ariane Daguin, who transformed America's specialty meat landscape with just $15,000 and an unwavering commitment to sustainability. Ariane shares the unvarnished truth about building D'Artagnan from the ground up. She walks us through those challenging first ten years managing tight cash flow, explains why turning down certain growth opportunities actually strengthened her business foundation, and describes the strategic "shotgun clause" she used when buying out her...
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In this episode of The Good Food CFO Podcast, Sarah reveals the counterintuitive financial tracking system that successful food brands actually use to drive profitability. Responding to a listener's question about which financial reports matter most, Sarah challenges conventional wisdom by presenting a strategic hierarchy that puts cash flow management at the top of the priority list—not the P&L statement many founders obsess over. Sarah unpacks why most food entrepreneurs look at their financials in the wrong order and introduces a practical framework that helps spot problems before...
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In this Building a Business on Your Own Terms episode, Sarah sits down with Matt Cross, co-founder of Harvest Chocolate, a bean-to-bar chocolate company in Tecumseh, Michigan. Matt shares how he and his wife Elizabeth transformed their culinary expertise into a thriving chocolate business that started in their kitchen during the pandemic and now operates a successful retail location with multiple sales channels. Matt reveals how Office Hours helped confirm his business was financially healthy and ready for strategic growth. Listeners will discover practical insights about: Using profit...
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Despite rising costs and economic uncertainty, Sarah brings her characteristic straight talk to food business finances in this timely episode: "All is not lost." Drawing from both historical patterns and current market insights, she explains why specialty food brands can still thrive during economic downturns as consumers continue treating themselves to small luxuries like artisan chocolate and premium coffee. "This is not a shelter-in-place moment," Sarah emphasizes, but rather a time to be strategic about where you invest your resources. The episode unpacks three critical focus areas...
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In this episode Sarah sits down with Christopher Hudson, the Arizona native behind Benny Blanco Tortillas. After years in food service, Christopher purchased the company in what he calls "a match made in heaven." Christopher's approach to building a business on his own terms combines premium quality ingredients with transparent sourcing, a premium pricing strategy and a willingness to say "no" to opportunities that don't make financial sense or support his vision for a thriving local food industry. In this episode you’ll hear: Why Christopher turned down a $1.2M deal and the principles...
info_outlineIn this episode of The Good Food CFO Podcast, Sarah Delevan shares candid insights from a recent meeting with the founder of a brand generating over $400 million in annual revenue, and doing it profitably. Through a series of powerful "sound bites" captured during their conversation, Sarah reveals how this founder's approach challenges traditional industry wisdom while delivering remarkable results.
You’ll hear:
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Why marketing shouldn't drive your offers and how to structure profitable promotions
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The surprising truth about driving trial in e-commerce vs retail
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How to identify and grow your most profitable sales channels
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The real math behind hitting your gross profit margin targets
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Essential management reports every founder needs
This episode is validation for every founder choosing to build their business on their own terms, who remains focused on consistency and doing the work, and practices patience and resilience in the face of conventional wisdom.
Big News:
Sarah announces our next book club selection - "BE 2.0 (Beyond Entrepreneurship 2.0)" by Jim Collins and Bill Lazier.
Grab your copy, and read along with us .
Join the live discussion on Wednesday, April 9th at 9am PT.
This episode is brought to you by Settle.
Settle helps you make smarter decisions, and keep your business on track to grow sustainably. Head over to settle.com/goodfood to learn how brands like Carnivore Snax use Settle to manage their cash flow and growth.
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