Hannah Smolinski is a CPA and the founder of Clara CFO Group, a virtual CFO agency providing small businesses with financial clarity and profit maximization strategies.

In today's episode of Smashing the Plateau, you will learn how to turn your expertise into multiple active and passive revenue streams.

Hannah and I discuss:

• Hannah’s career [00:40]
• How Hannah found her business model [05:31]
• How Hannah developed a recurring revenue model [07:03]
• Her various revenue streams [13:04]
• How Hannah started selling digital offerings [16:19]
• The impact of Hannah’s business on her work/life integration [20:19]

Hannah’s experience working for one of the world’s largest accounting firms inspired her to make corporate expertise accessible to small business owners through fractional CFO services. She also hosts a YouTube channel with over 36,000 subscribers and uses the platform to help small businesses achieve financial success.

Learn more about Hannah at https://www.youtube.com/c/claracfogroup, https://claracfo.com, and hannah@claracfo.com.

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One of the things that helped when I was thinking

about my business was really trying to identify what does the

client really need every month?

Welcome to Smashing the Plateau.

We help consultants, coaches, entrepreneurs, and small business

owners build their business after a long career as an employed professional.

We believe you should be able to do what you love and get paid

what you're worth, consistently.

I'm your host, David Shriner-Cahn.

Today on Smashing the Plateau, I'm speaking with the president of

Clara CFO group, Hannah Smolinski.

In today's episode, you will learn how to turn your expertise into multiple,

active and passive revenue streams.

Stay with us to hear all the details.

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Now let's welcome, Hannah Smolinski.

Welcome Hannah Smolinski.

Hannah is a CPA and the founder of Clara CFO group, a virtual CFO agency providing

small businesses with financial clarity and profit maximization strategies.

Her experience working for one of the world's largest accounting firms

inspired her to make corporate expertise accessible to small business owners

through fractional CFO services.

She also hosts a YouTube channel with over 36,000 subscribers, and

uses the platform to help small businesses achieve financial success.

Hannah, welcome to the show.

David.

Thank you so much for having me.

I'm excited to chat today.

Me too.

Tell me a little bit about your career and what led you to become a fractional CFO.

Yeah.

So I, started off at Big Four accounting.

I did the whole very traditional, started out getting my accounting degree.

Didn't really ever think I was going to do accounting, but I landed in accounting.

I liked business and numbers seemed to work well for me.

So I ended up in accounting and then did the, when you need to

sit for your CPA exam, sometimes you go, and do a master's degree.

So I did that as well, also in accounting, very exciting stuff.

But it did allow me the education to sit for my CPA exam, and it also allowed me

opportunities to, get a great internship with a Big Four accounting firm.

And then I started on that path in the Big Four.

And I'm sure some of, a lot of your, people who have been in corporate kind of

understand the Big Four, either whether it's in consulting services or it's in

accounting, it's a churn and burn model.

You work there, they, hire tons of staff when you first start

and then they hope that there's going to be attrition over time.

So I ended up kind of being spit out of the system where I actually opted out

about five years in because I needed more work life balance, surprise . So

it was time to do something different.

And, I loved working in public accounting.

I loved my coworkers and everything, but I just needed more balance.

So I ended up working for a small engineering firm when I left.

And that's where I really started to get really aware of everything

that small business owners really needed with their finance.

And it was actually really different from a corporate, background.

And, it was, yes, you need, you need finance, but in small business,

there was more, I wouldn't say more nuance, but there's just, different

needs and much more focus on cash.

And I just realized that there was an opportunity there to start

consulting after I was working for a small business for a while I

realized, hey, I could probably do this for some other companies too.

So about five years into that business, I was like, maybe it's

time to start something on my own.

And that's where Clara CFO group was.

And did you go fulltime right away in your

own, into your own business?

Or did you start something on the side?

Build it up a little bit and then leave your job.

I did the side by side, so I was definitely

working for the other company.

I was actually about 32 hours.

I wasn't quite full time with them.

And so it gave me a little bit of free time.

And then my evenings were spent developing my business and on the side.

So I probably did them side by side for a good year and started to build

up a client base for my business.

And then I ended up transitioning out of my role with the small business

and kept them on as a client actually.

So that was actually a nice kind of soft landing into, full-time

consulting is when I had a healthy client base at that point in time.

So how do you have a conversation with an employer

and say I want to leave, but I also still want to work for you.

Really it came down to, value and the skills I was bringing were,

what I was really best at was the finance and the advisory side on the finances.

And what I had the conversation was actually, my skillset was more expensive

for doing that type of consulting work.

But they were basically under utilizing my skills and they could have hired in

a less experienced and honestly cheaper person to come in and do everything else

I was doing in the business at the time, because I was doing administrative work

and I was helping with sales and I was the person who was like, running errands,

if someone needed to have an errand run.

So we actually were able to bring in an administrative, more administrative

focused person, and then it allowed me to sit more in that higher

level, strategic advisory type role.

And, it cost them less overall kind of with the whole package after doing that.

So I sold it based on, you're going to be getting more time from

somebody else and it's going to cost you less in the long run.

So it was actually a solution that was a win-win.

Yes.

Yeah.

And I try to do that wherever I can, because I, I believe that

there's, win-wins all over the place.

So you just kinda need to work and find the angle and usually

we can find something to work.

Yeah, no, that's really good.

So then you went into your own business and tell me a little bit about how

you landed on your business model.

Yeah.

So I definitely tested out a number of things for a while because I wasn't

exactly sure how to sell my services.

I think when we all start, we're all trying to figure out what does the

market really need and what are we selling and where do I fit in all of it?

And I knew the market needed CFO services, but I had a hard time

selling them at first because I didn't know how to talk about it.

And then I also had a really, challenging point, of trying to make sure that I

didn't get myself roped into bookkeeping engagements, because when people hear,

Hey, you're doing accounting on the side, everybody thinks that means that you're

going to do their accounting for them.

And, really identifying that we weren't doing the accounting and

actually like sitting in a more higher level strategic advisory,

type service took a little while.

So that took a while to suss it out.

But I knew, that the role would be ongoing.

So it lent itself really well to a recurring revenue model where,

a client hires us on a retainer.

And we have a set amount of work.

We do every single month because with accounting things change every

single month, you get a new set of financials every single month.

And so that ended up working really well with that recurring revenue model.

Yeah, one of the things that I hear a lot from

professionals in their own business, when they're trying to shift into

a recurring revenue model is how do I know how much time is actually

going to take me to do this?

How do I know what kinds of deliverables I'm actually going

to be able to produce each month?

How do I price it?

How do I price it in a way that it's not too low?

And also how do I price it in a way that's not too high and I'm

over promising what I can deliver.

So there's often a lot of fear around changing a business model or pricing model

from one that might be project based or time based into a recurring revenue model.

One of the things that helped when I was thinking

about my business was really trying to identify what does the

client really need every month?

What do they need?

And if I broke that down, I started to see trends where I knew that

every single client would need, for example, a budget every single year.

So we're always going to do an annual budget.

And then we know, Hey, a forecast needs to be updated pretty much

every month because assumptions change decisions are being made.

New clients are being brought on and you know, revenue

forecast can definitely change.

So when I noticed at that point, I understand what does the client need

every single month then I could back into, what does a package look like

that I can really sell that I know I can deliver over and over again.

So it ended up for us that when with a client that's typically under a

million dollars, we can start to see, we know what we need to do

at the beginning of the project.

And then we know that on a monthly basis, once we get that first bit

established on a monthly basis, we have a really good sense of what that's

going to, be on an ongoing basis.

So I was just talking with my staff earlier today and I was like, for

this type of client, we know that we can spend four to six hours every

single month on this type of client.

And that always, almost always is, going to work out just fine.

Now at the beginning of the project, that's where we have the most uncertainty.

So for us, we actually do a recurring revenue model, but

we also have a setup fee.

So we charge that at the very beginning, which helps offset any

up, really, wild swings and hours.

And then we also very specifically say these things are out of scope.

So if we get into your books and they're way messier than we ever

expected, then we're going to like, put that back to a bookkeeper, or we're

going to bring some money on that.

That's not our responsibility to absorb, but it's their responsibility to absorb.

And so I think once we started to identify, we know you need these

things because people are coming to us because they don't know what's

going on in their financials and they're looking for an expert.

And so as the expert, we can say, we know you need these things, and

we're going to deliver on these things for you every single month.

So it lends itself really well in the recurring revenue model.

Yeah.

So I think what you've raised a really important point,

which is you've gotta know your scope for what's included and what's ex

excluded from a particular offering.

And I think that's also hard for people in the beginning to figure that out.

Oh, and I've made tons of mistakes.

Let's not, , let's not pretend like I didn't get burned a number of times from,

a way under bidding, a project or way underestimate the amount of time it took.

So I do think there, it does take a number of tries to really get it right.

And, I think the more you do something, the better you get at knowing the time

that it's going to take, and you can put your best estimates out there.

I would always say if you're going to set some estimates, add 50%, and

then maybe charge your hours from there, because there's always

going to be learning along the way.

Yeah,

so what did you do when it turns out that you weigh

under bid in terms of how much value you provided or how long it took you?

What you do in those situations in the beginning?

Yeah.

I definitely underbid a couple of my very first clients.

And this was when I was still doing some accounting for clients as well.

I just would come back to them with conversations and say, Hey, like I had

bid this project based on assuming your monthly close was going to take 10 hours.

It actually took 20 hours.

And I don't anticipate that changing because of efficiencies.

Like I'm as efficient as I can get.

And where we need to change the scope of what this is.

And I think part of that is also understanding, you always have to

be a little bit, if you're going to increase your prices, you have to

hold your client with an open hand.

Because you have to be willing for them to walk away when you increase

your prices, but you also need to know like that you need to be true

to yourself and what your value is.

If you're going to have a price increase discussion, you also need to be aware

that maybe they won't like it and maybe they'll think, Hey, we can go

and find services cheaper elsewhere.

At the end of the day, that's not a bad thing.

because then you could go out and find a client and price it

correctly the next time around.

So I think you have to just be, you have to be willing to, with the consequences

of what happens on a price increase.

Yeah, no, that's very wise.

So at this point, what are the different kinds of offerings

that you have in your business?

Yeah, so our main core offering is the virtual CFO services.

And so those are recurring revenue projects where we come

on and, average time with those clients is at least three years.

So we're looking at where we come onto the team and we're serving

them one on one, every single month.

But I have a couple other revenue streams, which is slightly different from probably

other people providing CFO services.

So I have a YouTube channel, which was mentioned, I think in the

intro where we are putting a lot of free education up on YouTube.

And with that, I have income coming in from YouTube AdSense.

So that makes me a little bit, so probably the range between what

is recurring revenue, from one on one services is about 80 to 85% of

the total income in the business.

And the other portion is made up of these other things.

So I've got AdSense coming in, I also will sell things like workshops

or even worksheets in Excel.

So I'll make a worksheet.

let's say it's like how to calculate your estimated taxes for your small business,

and that worksheet will sell, like I'll probably sell two or three of them today.

Just because I have a video that's actually sitting out on

YouTube and people watch it.

And especially when estimated tax time comes around, that

video gets pulled up and a lot of people will buy that spreadsheet.

So I have that and digital workshops that I have done where I've, recorded

a training and then I can sell the recording over and over again.

And then I've got affiliate commissions.

So I like right now I have a QuickBook series and I'm an affiliate of QuickBooks.

So with my YouTube channel, that's driving some affiliate revenue as well.

Long term for your business, what would you like it to?

Like, how would you like it to develop?

Because if at this point it's 85% from one on one services, where are

you thinking you want to take things?

Yeah, I would like to get to closer to a 50, 50.

And that seems like aggressive, but because I do want to grow and scale

the agency side of the business as well, but really with YouTube, it's a

really interesting platform, there's a lot of opportunities for monetization.

And even if you're not monetized with AdSense, you can still be monetized

by selling a course or you can, do the affiliate revenue thing, which

affiliate revenue really kicks in when you get like good volume

coming in on videos and whatnot.

But I would like to see that grow.

And I do think that will happen a lot through potential courses.

So we've got some, we've got some plans to grow on that side where we're

able to come in and provide really, targeted courses to certain industries

that will help them with their overall financial understanding and planning.

Yeah.

Was there a particular trigger that encouraged you to get

started selling digital offerings?

I think what happened, I think the first offering I sold was

actually, because of P P P so the paycheck Protection program was why

my YouTube channel really took off.

I was helping people understand that program.

And then with that, I was selling, no I wasn't selling, I was giving away

for free a spreadsheet that was helping people calculate their PPP loan amounts

and their potential forgiveness amounts.

And that grew my email list basically from, a couple hundred

people to over 10,000 people.

Wow.

Basically like that one spreadsheet.

And so what that made me think was like, wow.

If people get spreadsheets for free, maybe some people might

want to buy some spreadsheets too.

so let's test that out.

Yeah.

Let's test that.

That, that's the thing with some of the stuff it's like, why not?

throw it up there.

If nobody buys it, don't spend too much time on it where it's

going to be a huge loss, test it.

If one person buys it, maybe two people will buy it, but, my products

have always been, and the products that have always done well, have

been based on what people are asking for and where people have questions.

So any product I build it's because somebody has expressed a need

for it at some point in time.

And so that's, ideally you have a customer and then you build a product,

not the other way around, you build a product and then you get a customer

that tends to not work so well.

And I've done that too.

And then net doesn't sell and then I wonder why.

yeah.

Congratulations on everything you've built and the way

you've started to diversify your business.

If you are advising someone who has a, not an accounting or finance

related business, but a, totally different professional services, niche.

What would you advise?

when it comes to building multiple revenue streams and building

recurring revenue and passive income?

I would say that there's a lot of opportunities

for really easy entry into this space of selling anything digital.

and then probably you're already doing something from a marketing perspective

that you might be able to transfer into something you can actually sell.

So a lot of us as consultants, we're giving workshops, or

we're doing things for free.

We're doing speaking engagements, we are teaching on a topic because

if you're consulting on something, it means that you have a knowledge

base that maybe other people don't.

So how can you take that knowledge base and think about what type of

product could I bring to market.

And ideally that product is at a pretty base level because you don't want to take

your clients who might be paying you a hundred thousand dollars for a consulting

gig, and then take that knowledge base and give that away for a hundred dollars.

We're not going to do that, but maybe you can sell something, that's the first 10

tips to get into whatever, a like teaser into the first things you would need to

know before you need your services, or maybe just really high level information,

or if you have a workshop recorded or you want to do a workshop, go and, put that

into a place that you can be monetized.

A lot of people will spend 50 to a hundred, to $200 on some education.

And if they know you trust you, they'll be buying your products.

So I think there's a lot of really quick entry ways into making money

that we have incredible opportunity right now with all, everything that,

all the tools that we have access to.

We sure do.

congratulations on, on what you've built Hannah, at this point, now that you've

been in your own business for a while.

What has that done to your work life integration?

I'm still working probably more than I would like

to be, but I'm starting to see the light at the end of the tunnel.

I think one of the biggest game changers for me is bringing on another me.

Another me and client service.

So I've been able to hire somebody who I trust, to work with clients one on one

and then, and frankly, she does a better job in a lot of ways, because she's

not pulled in 27 different directions, like I am as the, business owner.

But when, as I'm bringing on client serving professionals, Being able to

alleviate some of the client pressures a little bit is definitely changing my work

life balance in a good way or integration.

I like that better.

and I'm, I have a child, so I want to spend time with her.

And I always end my Workday during school times.

I always try to end my Workday at three o'clock because that's

when she gets off the bus.

And I wouldn't be able to do that if I was still working in public accounting.

So

That's for sure.

Yeah, definitely not, it's always a joke when they were

on, flexible work arrangements, quote, unquote, it just meant that you were still

working the same amount of time, but just getting paid less, which was the joke was

like, nobody's going to go and do that.

No, at least when I left, that's what it was like.

So I think.

Now I have, I will use my time in the evenings, in the weekends sometimes

just so I can make sure that I get those hours when she's home from school.

Sounds great.

Hannah, I want to thank you so much for taking the time to join us today.

Where can people go to get all these great resources that we

talked about during the show?

Yeah, so you can check out the YouTube channel.

So that's at Clara CFO group, C L A R A CFO.

And that's where a lot of those videos who are really trying to help people

with how to build a successful small business from a financial perspective.

And you can also go to the website it's claracfo.com, and then if anybody

wants to reach out to me directly, my email is Hannah@claracfo.com.

Sounds great.

We will include all of these things in the show notes.

My guest today has been the president of Clara CFO Group, Hannah Smolinski.

Thank you, Hannah, for joining us.

Thank you so much.

When you visit the Smashing the Plateau website at

smashingtheplateau.com, you'll find a summary of each episode, along with

the links we mentioned on the show.

In today's episode with Hannah Smolinski, we learned how to

turn your expertise into multiple active and passive revenue streams.

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