In this episode: James Kennedy sits down with Karl Baker, CPA and founder of Baker CFO Advisory, to unpack a third path to ownership and exit: employee ownership paired with open-book management. Drawing on Jack Stack’s The Great Game of Business and Karl’s decades in public accounting and fractional CFO work, they dig into ESOPs, teaching every employee the P&L, and the cadence of weekly financial huddles that move companies faster – without chaos. We also get into when to bring in a fractional CFO, how to get bank-ready for growth, and why decisions made with 60–70% of the data often beat waiting for “perfect.”
About Karl Baker
A licensed CPA with 25 years in public accounting (Missouri & Boston) focused on audits for healthcare and nonprofits, Karl founded Baker CFO Advisory seven years ago to deliver hands-on financial leadership to scaling SMBs. Trained at Truman State University, he blends deep audit discipline with forward-looking advisory to help owners install systems, secure working capital, and make faster, clearer decisions.
What You’ll Learn
- ESOPs & Open-Book Management: How employee ownership plus teaching the P&L line-by-line can transform culture and profitability.
- The Great Game in Practice: Weekly huddles, shared KPIs, and tying everyone’s role – from receptionist to CEO – to revenue, margin, and cash.
- Decision Velocity: Why acting at ~70% certainty often outperforms waiting for 100%, and how to build that muscle responsibly.
- Signals You’re Ready for a Fractional CFO: Bank declines, stale or missing financials, scaling pains, and cash-flow strain.
- Getting Bank-Ready: Clean, timely reporting; cash forecasting; and the narrative lenders need to fund growth.
- Comp & Incentives Beyond Sales: Profit-share and KPI design for “below-the-line” teams so everyone rows in the same direction.
Episode Highlights
- “He made every employee an owner—and then taught everyone the numbers. That’s where the magic happens.”
- “Make the decision with 60–70% of the info. Waiting for perfect is how companies bleed money.”
- “Front-desk copays today beat collection 90 days from now. When people see the cash cycle, behavior changes.”
- “Audits create discipline—but advisory creates trajectory. Founders need both as they scale.”
More About Karl’s Role
At Baker CFO Advisory, Karl helps owner-led companies move from “everything in the founder’s head” to repeatable finance ops: reporting cadence, cash forecasting, budget vs. actuals, bank packages, pricing & margin work, and leadership coaching so the visionary can be the visionary.
Resources Mentioned
- Book: The Great Game of Business by Jack Stack (SRC)
- Practice: Employee Stock Ownership Plans (ESOPs) & open-book management
- Channels: Take Command of Your Business: Let’s Talk Finances (YouTube) and Infinite Returns (real estate content)
