There are two ways for Insurance Companies, Banks, Private Equity firms, MGAs, and insurtechs to approach complex risk in 2025:

1. Rely on generic solutions, potentially overlooking critical gaps.
2. Partner with specialized expertise that delivers clarity and tailored protection.

Many sit in the first category, often underserved by mega-brokers.

Your institution has unique strengths and ambitions. 

But is your risk management truly aligned? 

Or are you unknowingly exposed due to:

–  Coverage gaps hidden in the fine print?

–  Lack of access to sophisticated global markets?

–  Decisions made without credible peer data or advanced analytics?

–  Impersonal service that doesn’t grasp your specific operational realities?

The bigger problem?

You're leaving strategic advantage on the table and potentially facing significant financial or reputational risk down the line.

The solution?

Transform your risk management from a necessary cost center into a strategic asset through a bespoke, expert-driven partnership.

That’s my focus at LION Specialty.

My approach combines:

– Penetrating technical analysis honed by deep experience (including handling complex Fortune 100 accounts) to uncover what others miss.

– Global market access (London, Bermuda) and perspective, crafting solutions beyond standard domestic offerings.

– Process mastery & advanced analytics delivering clarity and confidence, not complexity.

– Authentic human connection, building partnerships that thrive.

(informed partly by my wellness background as a Pilates instructor… sustainable success requires balance)

–  Are you serious about closing critical coverage gaps?

–  Are you ready for risk management bespoke to your institution's needs?

–  Is it time for a partner who brings both sophisticated expertise and a refreshingly collaborative approach?

Let's connect and explore how we can elevate your strategy together.

Natasha Kiemnec

The SEC doesn't always send a lawsuit.
Sometimes they just ask for a "voluntary" interview.


That "voluntary" interview cost my client $250,000 in legal fees.

They received a request for documents. Not a subpoena. Not a Wells Notice. Just a request.

They hired top-tier counsel to respond (as they should).

They sent the bill to their insurer.

The Denial:
"This is not a Claim. A Claim is defined as a written demand for monetary or non-monetary relief. This is just a request for information."

Technically, the carrier was right.
The standard policy was silent on "inquiries."
The client paid the $250k out of pocket.

The Architect Solution:
We don't use standard definitions.
We expanded the definition of "Claim" to include "Pre-Claim Inquiries."

Now, when the regulators "just have a few questions," the policy responds.
It pays for the lawyers to answer those questions correctly—before they turn into a lawsuit.

If you wait for the subpoena, you’ve waited too long.
Your coverage needs to start when the risk starts.

Does your policy cover "Pre-Claim Inquiries" or just "Claims"?

One definition is worth $250k.

DM me "INQUIRY" and I'll check your language.

P.S. Ever been to Mexico City? One of the coolest spots I’ve frequented the last few years! It’s a vibe.

Natasha I.  Kiemnec, ARM

Managing Partner & Co-founder of LION Specialty | Global Financial Institutions & Private Equity Broker | Classical Certified Pilates Instructor

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What makes someone great?


The book, Good to Great, would tell you it’s disciplined people making consistent, focused decisions over time. 

In light of the Olympics, Lindsey Vonn has said, you have to believe in yourself when no one else does. You can give up, give in, or give it all you’ve got. 

The themes are consistent
Discipline
Focus
Internal drive 

For me, these have always been where I found my success. 

The competition with myself to be the best. 

It’s amazing what you find in the hours of pushing yourself. 

In a marathon
Hours of studying
Early mornings at the gym 
Late nights at the office 

If you’ve been there, you know what I’m talking about…

The one other thing I’ve unexpectedly found to bring that same drive in life, is love. 

In light of Valentine’s Day, a shout out to my fiancé taking his third bar exam coming up in a week. 

Not because he didn’t pass the first two but because he’s going to be barred in the whole country soon (except Louisiana - haha don’t worry I don’t want to move there next)

The drive, effort, dedication, commitment that he puts into his work makes me want to find the next level within…

So I’d add admiration and love for someone to that list of reasons to find a third or fourth gear in yourself. 

While it was yesterday, I thought I needed something more than insurance humor in celebration of the day. Happy Valentine’s!

So incredibly proud of you David Gutierrez ❤️

What’s your take on what makes people great?

Your $5M policy is not actually $5M.


Unless you structured it correctly.

Most D&O policies are "eroding limits."
Every dollar spent on lawyers reduces the limit available for the settlement.

If you spend $2M defending a frivolous lawsuit...
You only have $3M left to pay the judgment.

The lawyers get paid first. You get paid last.

We structure defense costs outside the limit, in addition to, or specific sub limits outside the limit. 

This means the insurance company pays for the defense or other limits in addition to the policy limit.

Your $5M limit remains fully intact for settlements and judgments.

Why this matters:
In a complex securities claim, defense costs can easily hit $500k-$1M before you even get to a motion to dismiss.

If that money comes out of your limit, you are underinsured.

If it sits outside, you have a dedicated war chest for the fight.

Don't let your legal bills eat your protection.

Check your declarations page. Does it say "Defense Costs Included" or "Defense Costs in Addition"?

What other sublimits are included, if any?

If it says "Included," you have less coverage than you think.

DM me "LIMITS" and I'll review it for you.

The easiest way for a carrier to deny a $10M claim is not a coverage exclusion.


It is a calendar error.

"Late Notice" is the silent killer of D&O claims.
Most policies require you to notify the carrier "as soon as practicable" or within a specific window (30-60 days).

But what counts as a claim?
Is it a lawsuit? A demand letter? A verbal threat?

If your General Counsel gets a letter on January 1st, handles it internally, and then notifies the broker on March 1st...
You might be denied. Entirely.
Not because the claim wasn't covered.
But because you missed the window.

The LION Process:

We don't leave "Notice" to chance.

1. The Definition Trigger
We negotiate the definition of "Claim" so it triggers only when a written demand is received by the Risk Manager or General Counsel—not just any employee. This prevents a mailroom mistake from voiding your coverage.

2. The Protocol
We build a "Notice Flowchart" for your legal team before the policy binds. Everyone knows exactly who to call and when.

3. The "Laundry List"
At the end of every policy period, we notice everything. Every potential circumstance. Every rumble of thunder. We lock in coverage under the expiring limits so you start fresh.

Process beats panic.

Don't let a clerical error cost you your limit.


Does your team know exactly what triggers a notice requirement?

DM me "NOTICE" and I'll send you our protocol checklist.

The insurance industry is approaching a 400,000-worker deficit.


CFOs, CUOs, and board members at regional insurers, reciprocals, and mutuals…

Here's the part most people get wrong: Gen Z isn't avoiding insurance careers. They don't know they exist.

In my 18 years in this industry, I've watched the narrative problem compound:

We're an industry that has exactly what younger generations want — meaningful work, people-first culture, good pay, career growth.

But we've done a poor job of telling that story.
Meanwhile, the talent we do have? We're burning them out. A CII study found 78% of employers have taken no steps to address secondary trauma in claims professionals.

We manage external risk all day. We should apply the same rigor to our own teams.

This week's Friday Five covers all of it — the talent gap, the burnout blind spot, and what leaders are doing differently (including 250 Pilates classes).

Comment "BRIEF" below if you're not on our distribution…

Stay covered!

P.S. If you're serious about building the next generation of insurance talent, it starts with telling your story. We've had great success being authentic on social media about who we are and what we stand for.

P.S.S. Getting out in nature, doing pilates, meditation helps with burnout. Can you guess where this is?

Innocent until proven guilty" is a legal right.
It is not an insurance right.


Most D&O policies contain a "Conduct Exclusion."
It states the insurer will not pay for claims arising from fraud or criminal acts.

That sounds reasonable. You shouldn't be insured for committing crimes.

The problem is the trigger.

In standard policies, the carrier can often stop paying defense costs as soon as there is a "fact in dispute" or a credible allegation of fraud.

If a plaintiff accuses you of fraud, the carrier can say:

"This looks like it falls under the exclusion. We are pausing defense payments."

You go bankrupt proving you didn't do it.

We change the trigger.

We demand "Final Adjudication" language.

This means the carrier must pay your defense costs all the way through trial and appeal.

They can only apply the exclusion if a judge or jury issues a final, non-appealable ruling that you actually committed the act.

We shift the burden of proof from you to the contract.

Check your policy for "Final Adjudication" wording.

If it's not there, you are exposed to the allegation alone.

This is just one of 10 tweaks we make to the conduct exclusion alone to ensure that you have defense cost coverage. 

DM me "CONDUCT" and I'll help you find them.

The single biggest leverage point…


Time

Most brokers start the renewal process 30 days before expiration.

They flood the market with submissions. They cross their fingers. They hope for appetite.
You get daily emails asking for "just one more thing" while trying to close your quarter.

We operate on a 150-day cycle.

Day 150: The Strategy
We map out exactly where we are headed. We identify the story we need to tell before we ever open a submission file.

Day 120: The Build
We construct the submission. We test every angle of the risk narrative.

Day 90: The Approach
The carriers see our first approach now. We are reading the market, not reacting to it.

Day 60: The Options
We have your options locked down.

Day 30: The Bind
Bindable terms in hand. No drama. No surprises.

One client saw their limits jump 25% at flat premium simply because we had the runway to position them properly.

You negotiate effectively when you control the clock.

If your renewal is July 1st, we should be starting right now.

DM me "TIMELINE" and I'll share our 150-day execution roadmap.

Early in my career, I said "Yes" to everything.
Every client call. Every project. Every "quick question."

I thought availability was a competitive advantage.

I was wrong.

Overcommitment is the enemy of excellence.
If you are always available, you are never deeply focused, creative, or unique.

I learned the hard way:

You cannot manuscript a complex policy while answering emails every 5 minutes.

You cannot negotiate a difficult claim while jumping on "quick syncs."

The Pivot:
The process was developed. 
Each day had a focus throughout the week. 
Each month prepared for the next. 
Always aligning with the client’s calendar 
150 days out from expiration. 
Sunday nights were for alignment of the week. 
Fridays for policy checking. 

It felt too structured but the focus helped my alignment,
the team,
The client. 

My clients stopped getting "fast answers."
They started getting better answers. 

Structure creates the space for 
deep work, 
unique, 
creative outcomes.

And deep work is the only competitive advantage that lasts.

What is one thing you need to “structure" this week to better align the team?

Kroll just surveyed 325 PE executives about cybersecurity.

The headline number: 80% experienced hold-period cyber disruption. Average financial hit per deal: $2.1 million.

But the number that stopped me...82% of PE firms have no dedicated cybersecurity leader managing portfolio risk.

Not "could improve their approach." 
No leader. 
Period!

When Flip and I review these reports for the Friday Five, we're looking for the data point that changes how our clients think about their next renewal. 

This week had three of them.

The $77.7 billion US data center construction surge creating entirely new risk classes for carriers. 

The PE cyber governance gap that predicts whether a firm absorbs a valuation hit at exit. 

And the plaintiffs' bar expanding its litigation analytics to 1,200 additional state courts.

Three forces. 

One common thread...the institutions slowest to adapt pay the most.

We broke all of it down in this week's Boardroom Brief.

Link in comments.

Comment "BRIEF" if you want it in your inbox every Friday.

If your insurance coverage doesn't work in a simulation, it won't work in a crisis.


We don't just place the coverage and file the binder.

We stress-test it.

Before the program binds, we run "Mock Claim" scenarios against the proposed language.

We simulate the specific nightmares that keep the C-Suite awake:

1. The Friday Night Hack

A ransomware event hits at 6 PM. Who do we call? Does the "Breach Response" definition actually trigger immediate counsel, or are we stuck waiting for carrier approval?

2. The Regulatory Subpoena

A short-seller report triggers a stock drop. The SEC calls. Does the policy cover the "Informal Investigation" costs, or does it only trigger after a formal Wells Notice?

3. The Nuclear Verdict

A jury awards $50M. Does the excess tower sit flush on top of the primary, or is there a gap in the attachment point that leaves you exposed?

We usually find the cracks during the simulation.
It is infinitely better to find them in a conference room than in a courtroom.

You stress-test your software.
You stress-test your financials.
Start stress-testing your risk transfer.

Ready to see if your program holds up?

DM me "STRESS TEST" and let's run a scenario.

Ps. This is how we react when we hear of another prospect’s program not working and they need a LION!

I’m exceptional at bar games. 


Corn hole / bags

Shuffleboard 

Darts 

Ping pong etc. 

And if you’re a guy reading this you’re probably like most other guys who think…

Ya I’m sure she is for a girl. 

Well I’d probably beat you too 😂

I’m rarely this confident about my ability but repetition lends itself to credibility. 

It’s not that people underestimate me. 

It’s that they never thought to ask. 

They just decide. 

That I wouldn’t be good

Couldn’t be that good or whatever it is

But the reality is that this happens everywhere in life at all times. 

It often happens with the megabrokers. 

Well, of course, they’ll be the best because it’s

Xyz or abc or whichever three letter broker it is. They’re the biggest or they have the most data or insert whatever assumption. 

But that really isn’t the case. 

What makes someone or some team exceptional is that 

Drive
Skill
Extra effort 
Hidden talent 

Being a guy with a sport or a mega broker with a deal doesn’t make you necessarily the best. 

At LION Specialty we pride ourselves on being that team that has that extra effort, and hidden talent. 

Curious what that looks like?

Come talk to us. 

What talent of yours often gets overlooked?

P.S.  for a little video proof… the ongoing dual between my fiancé and me… anytime there’s a game to be played… and yes, the record is 62 / 57 … me. We’ve kept score the whole time we’ve been together. For the record, he’s also pretty incredible at games.

Freedom of speech and press as given by this platform itself


How lucky are we to be able to have individual liberties that some only dream to have

•	Believe in who or what you wish
•	To gather with whom we wish 
•	The right to a fair trial if accused 

To get to use social media to promote

Our companies
Our ideas
Ourselves 

It’s seemingly sometimes lost on people but what a gift it really is. 

So today, I’m grateful for those who came well before this time, while many and much had to happen to get us to where we are, it was those founding fathers and first presidents who started us on this incredible path that we are on today. 

Happy Presidents’ Day

The most expensive gap in your insurance program isn't an exclusion.

It is a missing file.

Carriers deny more claims for "lack of substantiation" than for actual coverage disputes.
If you can't prove the loss, you don't get paid.

Most companies scramble to build the file after the crisis hits.
That is too late.
You are trying to find invoices and emails while your building is burning or your network is down.

The LION Process:
We build the documentation protocol before the policy binds.

1. The "Day One" Folder
We establish exactly what the adjuster will ask for.
Payroll records. Vendor contracts. Asset lists.
We keep them staged and ready.

2. The Communication Log
During a claim, every phone call needs a follow-up email.
"As we discussed..."
If it isn't written down, it didn't happen.

3. The Timeline
We map the event minute-by-minute.
"Breach detected at 4:02 PM. Counsel notified at 4:15 PM."
Precision kills ambiguity.

An adjuster's job is to ask questions.
Our job is to have the answers ready before they ask.

Is your claim file ready for an audit today?

DM me "DOCUMENT" and I'll send you our claim substantiation checklist.

Talk birdie to me


The line the from sweatshirt I’m wearing here. And a term that is on the minds of many pros this week at TPC Scottsdale golf tournament.  

As I watched these pros and amateurs tee off yesterday, I’m constantly reminded of the dedication and skill that it takes to get to the top of your game. 

While it starts with above average skill, it always comes back to finding beauty and comfort in the mundane. 

That extra effort to do the next rep, 
one more hour of practice,
one more review,
one more check

I see it in all aspects of life:

My cousin who did make a birdie yesterday in the tournament - has played golf for 40 years but just changed his golf swing recently to find that “next level”

Our team who reviews each document over and over again to make sure there are no mistakes. 

I’ll continue to believe that drive will allow anyone to outperform those around them. 

While it can’t be trained, it can be encouraged by team members who share that same desire to continue to level up. 

What are you doing to level up?

Right now we are perfecting our internal data to make sure we are accurately capturing it for the future!

A finance director joined a video call with his CFO, his CEO, and two colleagues.
None of them were real.


$25.6 million gone across 15 transactions before anyone caught it.

That was Arup, a global engineering firm, early 2024.

Attackers built real-time deepfake replicas of multiple executives on a live video conference. Convincing enough to override every instinct a trained finance professional had.

Financial institutions should pay close attention.

Your executives sit on hundreds of hours of public video and audio. 
Earnings calls, conference panels, LinkedIn clips, webinars. 

Every recording is training data for the next synthetic clone.

We just published Part 1 of our Deepfakes Miniseries in the Wednesday Intelligence. 

We mapped a deepfake loss across a typical FI insurance program, and the coverage fractures fast.

Most social engineering endorsements still require the instruction to arrive via email or written communication.

A deepfake video call? May not qualify.

Then there are the AI exclusions now spreading through D&O, E&O, and cyber forms. Broad language excluding claims "arising out of or related to artificial intelligence" can swallow a deepfake event whole. Even when the insured was the victim.

No single policy owns the full loss. And most of these wordings were written before attackers could clone your CEO's face.

We break down where the gaps hide, which carriers are already adapting, and six questions to bring to your next renewal.

Reply "DEEPFAKE" and we'll send our one-page Coverage Gap Checklist.

P.S.  this is only for those of you that are buyers of insurance!!

Bankruptcy doesn't just freeze your assets.
It can freeze your insurance defense.


A portfolio company filed Chapter 11.

The directors were sued immediately for "breach of fiduciary duty."

They called the insurer to pay for their defense.

The Bankruptcy Trustee stepped in.

"That policy is an asset of the estate. You cannot deplete it to pay for legal fees."

The directors were left paying $800/hour lawyers out of their own pockets while a $5M policy sat frozen in court.

We structure "Priority of Payments" clauses into every D&O program.

This language dictates that in the event of bankruptcy, the insurer must pay the individual directors first.

The estate only gets what is left over.

We also add "Side A" DIC (Difference in Conditions) coverage that sits completely separate from the corporate balance sheet.

You don't need insurance when things are going well.

You need it when the walls are closing in.

If your policy isn't bankruptcy-proof, it’s not finished.

Does your policy have a "Priority of Payments" clause?

DM me "PRIORITY" and I'll show you where to look.

Five events since 2017. Combined losses from billions to trillions. Physical damage across all five: zero.

NotPetya. 
The 737 MAX grounding. 
COVID-19 shutdowns. 
The Ever Given. 
CrowdStrike.

We went line by line through the coverage implications this week. The exposure class is Non-Damage Business Interruption, and for financial institutions running digital-first operations on legacy programs, the gap between what can shut you down and what your policy actually covers is measured in trillions.

But the article that stopped me was a Law360 piece on cyber policy restoration periods.
The distinction between “operations-focused” and “network-focused” language in your period of restoration definition is outcome-determinative. 

One version covers you through the full resumption of normal business activity. The other stops the clock the moment someone reboots a server — even partially.

That’s the kind of clause that determines whether your next cyber claim pays for twelve weeks of operational drag or cuts off at week two. 

Silence in insurance is dangerous. Especially in the definitions section.

We covered all of it in this week’s Friday Five, plus a forward look at parametric capacity that could compress payout timelines from months to days.

P.S. link in comments. 

P.S.S. Part 1 of our Wednesday Intelligence miniseries on deepfakes is live. What happens when bad guys deepfake your CEO — and six questions for your next renewal. Link in comments.

Your employee didn't get hacked.
They got tricked.

And your insurance policy treats those two things very differently.

A controller gets an email from the "CEO."
"Please wire $500,000 to this vendor immediately for the acquisition."
The email looks real. The tone is urgent.
The controller wires the money.

You file it under your Crime policy.
The carrier points to the "Voluntary Parting" exclusion.

"Your employee voluntarily sent the money. This wasn't theft. It was a mistake."

Or they point to the "Social Engineering" sub-limit.

"We cover this, but only up to $100,000."
You just lost $400,000.

We don't accept $100k sub-limits for the biggest risk you face.
We manuscript the definition of "Computer Fraud" to include "Social Engineering" and "Impersonation Fraud."

We stack the Crime policy limits with the Cyber policy limits to ensure you have full tower protection, not just a sliver.

If your policy penalizes you for being human, it’s the wrong policy.

Check your Crime policy today. Look for the 

"Social Engineering" endorsement.
Is it $5M or $100k?

DM me "FRAUD" and I'll review your limits.

There is a question plaintiff attorneys will ask after every data breach in 2027.
Most boards haven't even heard the premise yet.

"Did you use AI-powered security scanning tools to check your code?"

If the answer is "No," you might be negligent.

Last week, Anthropic released an AI tool that scanned production codebases and found 500+ vulnerabilities that human experts missed for 20 years.

These weren't minor glitches. They were exploitable flaws hiding in plain sight.

Traditional scanners check for "locked doors" (passwords, encryption).
AI checks for "structural weakness" (broken business logic).

We saw this with MFA.

Three years ago, Multi-Factor Authentication was "nice to have."

Today, if you don't have it, you are uninsurable.

AI code scanning is next.

When a defensive tool becomes widely available and highly effective, failing to use it stops being a "resource decision."

It becomes a "breach of fiduciary duty."

The window between discovery and exploitation is compressing from weeks to hours.
Your defense needs to move at the same speed.

Is your board asking about AI security, or are they waiting for the lawsuit?

We put together a one-page AI Security Standard-of-Care Checklist — 10 questions your board should be asking before your next renewal. 

The carrier application changes already in motion. The specific coverage intersections across cyber, tech E&O, and D&O. 

What the standard of care looks like now, not 12 months from now.

Comment CHECKLIST and I'll send it over.

Helping Founders Break the $10M Ceiling | Strategy, Cash Flow & Leadership Systems | Scaling CFO

I spent 25 years inside the machine.

GE Capital. GE Vernova. NBCUniversal. Unilever. Structured finance, capital markets, project finance across Latin America. I was the CFO who sat across from banks, governments, and Fortune 500 boards and made the numbers make sense. I closed an $800 million power plant deal. I managed capital market teams and hundred-million-dollar sales budgets. I built financial models that moved real money in real markets.

I was good at it. For a long time, that was enough.

Then it wasn't.

I stayed almost eight years past the moment I knew I was done. Eight years of golden handcuffs, institutional momentum, and not having a single person in my corner who could help me think through what leaving actually looked like -- financially, strategically, personally.

When I finally left, I made mistakes. I jumped into a startup that looked great on paper and had no financial foundation underneath it. I learned the hard way that passion without financial intelligence is just expensive optimism. Then I spent hundreds of thousands of dollars learning the things corporate never taught me -- how to sell, how to communicate with conviction, how to walk into a room and make people feel what I knew to be true about their business.

That education nearly broke me. And it turned me into something rare: a former Fortune 500 CFO who can read your financials like a surgeon reads an MRI and sit across from you like a partner who actually gives a damn.

That's what I do now.

I work with a small number of founders and executives -- people who've already built something substantial and want a strategic partner with real financial depth. Not a coach. Not a consultant recycling frameworks. Not a bookkeeper calling themselves a fractional CFO. Someone who's been in the rooms, closed the deals, read the balance sheets, and came out the other side with a clear point of view about what actually matters.

If you're a founder past $1M who can feel that the way you got here won't get you to the next level, I can show you exactly where the growth is hiding and where the model breaks.

If you're an executive who knows you're meant for something bigger than the title on your business card, I've been where you are. I made the leap. I can help you think through yours.

I don't work with everyone. I'm selective about who I take on because the work only works when both sides are all in.

One conversation is all it takes to know if we're the right fit.

Cruz Gamboa

McDonald’s didn’t win because the food was amazing.

They won because nothing was left to chance.

400°, not 375°.
2 minutes 50 seconds, not 3.
Two pickles. Always two.
Golden outside. Fluffy inside.
If you have time to lean, you have time to clean.

That’s not micromanagement.
That’s scale.

69M customers a day don’t tolerate creativity.
They tolerate consistency.

Ray Kroc didn’t build a burger company.
He built a machine that produces the same outcome, every time, anywhere in the world.

Most businesses fail because:

➡️ The standard lives in the founder’s head
➡️ Quality depends on “good people”
➡️ Execution changes with mood, energy, or talent

McDonald’s removed all three.

They turned judgment into instructions.
Talent into training.
Excellence into a checklist.

If your business needs you present to run well,
you don’t own a business.

You own a job.

Scale happens when systems are so tight that average people produce elite outcomes.

#scalingup #growth #ceo #founder

Your P&L Is Hiding the Real Problem.

Most founders check 3 things:

Revenue.
Profit.
Growth rate.

Then they relax.

That’s the mistake.

Because your P&L is a scoreboard.

Not a diagnosis.

And scoreboards don’t tell you why you’re winning,
or why you’re about to lose.

Here’s what it’s not showing you 👇

If revenue is growing but cash is tight…

You don’t have a profit problem.
You have a cash flow problem.

If sales are strong but margins are shrinking…

You don’t have a demand problem.
You have a pricing or delivery problem.

If profit exists but stress keeps increasing…

You don’t have a money problem.
You have an operational problem.

Most businesses don’t collapse overnight.

They erode slowly:

➡️ Slightly rising CAC
➡️ Slightly lower margins
➡️ Slightly higher payroll
➡️ Slightly longer collections

Small leaks.

Compounded monthly.

And because the P&L still “looks fine,”
no one panics.

Until they should have.

Here’s what real operators track:

✓ Gross margin trends
✓ Cash runway (in months) 
✓ Revenue per employee
✓ CAC payback period
✓ Churn rate

Those numbers tell you where the fire is starting.

Revenue is vanity.
Profit is sanity.
Cash flow is survival.

Read your P&L.

But interrogate it harder.

Because the businesses that scale aren’t the ones with the best revenue.

They’re the ones who catch problems before they show up on the bottom line.

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cruzgamboadrive

patagonia-solar-llc

Former GE Capital Executive | I help founders and executives see what their financials aren’t telling them.

Your financial reports are perfect.

Clean P&L.
Accurate balance sheet.
Cash flow that ties out.

Yet decisions still feel slow, reactive, or unclear.

That’s because reports don’t create leverage.
Interpretation does.

Most founders read numbers like history.
High-performing operators read them like instructions.

Every metric should force a decision:
→ double down
→ fix fast
→ kill it

If nothing changes after reviewing your numbers,
you didn’t review them, you admired them.

This cheat sheet breaks down:

➡️ The questions that actually matter
➡️ The metrics that lie
➡️ And how to spot 1% changes that unlock outsized results

Save this before your next finance review.

Most people would’ve quit.
They didn’t.

➡️ 2003.

Waco, Texas.
No hype.
No capital.
No backup plan.

Chip and Joanna Gaines quit stable jobs to flip houses.

They slept on air mattresses.
Made $300 in some months.
Maxed credit cards.
Half-finished renovations.
Joanna pregnant.
Chip doing the labor himself.

Friends kept asking the same question losers ask winners early:
“When are you getting a real job?”

Here’s the part most people misunderstand.

They weren’t building houses.
They were building taste.
A repeatable look.
A clear point of view.
Something people could recognize without a logo.

While others chased bigger markets,
they stayed small.
Cheap.
Ignored.

That was the advantage.

A local producer didn’t care about their revenue.
He cared about their authenticity.

How they treated clients.
How they worked together.
How real it felt.

➡️ 2013.

HGTV launched Fixer Upper.

By season two:

5M viewers per episode.
#1 show on the network.

Then they did what confused everyone.

At the peak…
They walked away.

Because TV was attention.
Not leverage.

So they built Magnolia.
A shop.
A restaurant.
A platform.

They stayed in Waco.
Lower costs.
Total control.
The town became the moat.

Today:
1.2M+ visitors every year.
$750M+ valuation.

Lesson:

Don’t chase scale.
Earn trust first.
Don’t compete where everyone goes.
Dominate where no one is looking.

That’s how you turn $300 months
into a generational business.

#scalingup #growth #ceo #founder

Founder Stories

A Sony engineer watched his daughter play Nintendo in 1984 and thought “the sound on this thing is garbage.”

Ken Kutaragi secretly built a better chip and gave it to Nintendo. Sony almost fired him for it.

Then he convinced Sony to partner with Nintendo on a CD-ROM console called the “Play Station.”

June 1991. Sony announces the partnership at CES.

Next morning? Nintendo takes the same stage and dumps Sony for Philips.

Sony’s board wanted to quit gaming entirely. Called it a “toy business.”

Kutaragi stormed into the president’s office. “Are you going to be a laughing stock to Nintendo for the rest of your life?”

The president’s response: “Just do it.”

They had to exile Kutaragi’s team to Sony Music because headquarters refused to house the project.

Then Kutaragi pitched Sega on a joint console. Their board laughed: “That’s a stupid idea. Sony doesn’t know how to make hardware.”

Betrayed by Nintendo. Rejected by Sega. Nearly killed by his own company.

December 1994. PlayStation launches. 100,000 units sold day one.
At E3, Sega announced the Saturn at $399. Sony’s Steve Race walked to the mic, said “$299,” and walked off. Standing ovation.

By 1998, PlayStation was 40% of Sony’s total profit. 563 million PlayStations sold across all generations. The PS2 is still the best-selling console ever.
The prototype’s codename? “PS-X.” Everyone knew the X was a reminder of who crossed them.

Most founders think this is a story about revenge. It’s not.
Kutaragi’s biggest fight wasn’t Nintendo or Sega. It was his own organization that thought the vision was beneath them.

That’s usually the real constraint. Not your competition. The blind spots inside your own company that nobody’s willing to name.

#scalingup #founder #ceo #growth

Uber didn’t scale by starting cheap.
It scaled by starting premium.

Black cars.
Polished drivers.
A reference point that said: 
this is what great looks like.

That first price wasn’t about revenue.
It was about positioning.

Once the market believed Uber = quality,
they introduced UberX.

Lower cost.
Same app.
Same brand trust.

Now scaling was easy, because value was already proven.

This is the Scaling Up lesson most founders miss:

➡️ Use a premium offer to validate demand
➡️ Anchor perception at the top
➡️ Expand down the price ladder without breaking trust

Luxury sets the ceiling.
Access fills the volume.

Start cheap and you fight on price forever.

Start premium and you control how, and when, you scale.
#scalingup #growth #ceo #founder

Some people launch snacks.
Some create global empires from leftovers.

Arch West did the second.

➡️ 1960s. Disneyland.

Casa de Fritos. Tons of stale tortillas. Wasted daily.
A small vendor saw opportunity.
“Cut them into triangles. Fry them. Add some seasoning.”

No PR. No hype. No flashy launch.

Just execution.
Just obsession.
Just seeing value where others saw trash.

1966 → Plain Doritos, national launch.
1972 → Nacho Cheese.
From leftover tortillas → multibillion-dollar snack empire.

Scaling lesson:

Opportunities are everywhere. Most ignore them.
Those who see the leverage, execute relentlessly, and scale turn accidents into legends.

Some people chase attention.
Some quietly turn scraps into billions.

#scalingup #ceo #founder #businesslessons

Doritos

The most successful people I know believe in themselves… almost to the point of delusion.

Look at Sam Altman:

→ Ran Y Combinator → scaled Airbnb, Stripe, Dropbox
→ Learned one truth: distribution + technology = unfair advantage
→ Built OpenAI → ChatGPT hit 100M users faster than any product in history

Here’s what most entrepreneurs miss:

You don’t scale by working harder.
You scale by stacking leverage.
Capital, talent, technology, timing.

All amplified when you believe early and commit fully.

Sam didn’t just launch a product.
He built the platform the future rides on.
Multi-billion-dollar partnerships. Global adoption. AGI-level ambition.

Scaling up is seeing the future before everyone else does and forcing reality to catch up.

The formula is simple:

1️⃣ Recognize leverage early
2️⃣ Commit fully, almost to the point of delusion
3️⃣ Stack capital, talent, and distribution
4️⃣ Let results justify belief later

Stop waiting for perfect conditions.
Stack your leverage.
Scale now.

#scalingup #growth #ceo #founder

Some people build loud brands.
Some build legendary ones in silence.

Michele Ferrero did the second.

➡️ 1924. Alba, Italy.

A small pastry shop. Almost bankrupt.
A father gone too soon.
A 24-year-old forced to take responsibility.

No press.
No hype.
No spotlight.

Just obsession.

He worked like an alchemist.
Formulas locked away.
Factories run with discipline.
Focus so sharp it scared distractions away.

1964 → Nutella
1968 → Kinder Chocolate
1974 → Kinder Surprise

Not just chocolate.
An experience.

A chocolatier quietly became one of the world’s largest toy creators.

But the real genius wasn’t just the products.
It was the culture.

➡️ No interviews
➡️ No politics
➡️ No yachts
➡️ No show-off wealth

Instead:

✓ Free buses for employees
✓ Above-average wages
✓ Summer camps for kids
✓ Generations of families hired together

He built belonging before it became a leadership buzzword.

Michele understood something many still miss:

Loyalty isn’t bought with bonuses.
It’s earned through care.

Iconic products don’t come from marketing noise.

They come from:

➡️ Absolute focus
➡️ Strategic silence
➡️ Obsession with the user experience

➡️ 2015. Monte Carlo.

He passed away at 89.
He left behind €23 billion.
And brands the world grew up with.

Proof that you don’t need to chase attention
to build something unforgettable.

Sometimes, the quiet builders win the longest.
#scalingup #ceo #founder

Growing companies don’t stall because of the market.

They stall because the CEO doesn’t scale.

Here are the real 3 mistakes:

1.⁠ ⁠The Founder Stays the Hero

You’re still:

➡️ Approving everything
➡️ Solving every problem
➡️ Closing every big deal
➡️ Fixing every fire

You built the business by being the best operator.

But scaling requires becoming the best architect.

If you’re still the hero, you’re the bottleneck.

2.⁠ ⁠No One Owns the Outcomes

Titles don’t equal accountability.

If revenue drops, who owns it?
If churn spikes, who owns it?
If margins shrink, who owns it?

If the answer isn’t ONE name, you don’t have ownership.

You have collaboration theater.

3.⁠ ⁠They Confuse Activity with Leverage

More hires.
More meetings.
More tools.
More initiatives.

But no single constraint identified.

Scaling is constraint removal.

Find the bottleneck.
Attack it.
Repeat.

That’s it.

Growth doesn’t require more effort.

It requires:

➡️ Better structure
➡️ Clear ownership
➡️ Founder evolution

Most businesses don’t hit a ceiling.

The founder does.
#scaling #CEO #growth #founders

Most “profitable” companies are one bad month away from dying.

Here’s why.

Profit is an opinion.
Cash is oxygen.

You can look profitable on paper and still miss payroll.
I’ve seen businesses doing 7 figures collapse because one client paid late.

Revenue doesn’t matter if:

• It’s delayed
• It’s unpredictable
• It’s already spent in your head

Growth makes this worse.

You hire early.
Lock in fixed costs.
Sign long-term tools.
Upgrade lifestyle.

Now your burn is permanent…
…but your income isn’t.

That’s the trap.

Another hard truth:
If the founder steps away and sales stop, you don’t have a business.
You have a high-stress job with employees.

Margins won’t save you.
Busy won’t save you.
Brand won’t save you.

Only cash flow will.

Simple rules that keep companies alive:

• Collect faster than you spend
• Keep fixed costs boring
• Build 3–6 months of runway
• Systems before scaling
• Liquidity before vanity growth

The strongest businesses aren’t the loudest.

They’re the ones that can survive a bad month without panicking.

That’s real leverage.

Most founders try to grow profit by chasing more revenue.

That’s backwards.

Profit doesn’t come from “more.”
It comes from better.

Here are the 5 levers that increase profit faster than revenue:

1. Pricing

If you’re scared to raise prices, you’re undercharging.
A 5% price increase beats a 30% increase in leads. Every time.

2. Costs

This isn’t about cutting coffee.
It’s about killing anything that doesn’t move revenue or retention.

3. Capacity

Your team isn’t maxed out.
Your systems are broken.
Fix utilization before hiring another person.

4. Customer Mix

Some customers cost you money.
Fire them.
Double down on the ones that pay, stay, and refer.

5. Operating Leverage

Build it once. Sell it many times.
Processes, automation, and repeatability are profit multipliers.

Here’s the truth:

Revenue feeds the ego.
Profit buys freedom.

Stop asking, “How do we grow faster?”
Start asking, “Which lever moves profit today?”

Founders who get this don’t need motivation.
They need systems.

Save this.
You’ll need it when growth starts hurting.

#scalingup #growth #ceo #founder

Your business is bleeding cash.
And you probably can’t tell me exactly where.

I know because I ask founders this one question all the time:

“What’s the ONE constraint holding back your growth right now?”

Most can’t answer it.

They give me three answers.
They say “hiring.”
Or “marketing.”
Or “we just need more leads.”

That’s not clarity.
That’s guessing with confidence.

The scary part isn’t that a constraint exists.
Every business has one.

The scary part is running a company for years without knowing what it is.

Last month, a $3M founder told me his margins were “pretty healthy.”

So I asked him to break it down by service line.

Long pause.

He couldn’t.

Turns out ~40% of his revenue was barely breaking even.
He’d been feeding his best people to his worst clients for two years.

He’s not dumb.
He’s sharp.
He’s just never been forced to look at the numbers that actually matter.

So I built something.

12 questions.
3 minutes.

It won’t fix your business.
But it will show you exactly where the money is walking out the door while you’re busy chasing the next deal.

Pricing gaps.
Forecasting blind spots.
Team financial literacy.
Working capital readiness.

The difference between a $3M business that stays stuck
and one that cleanly moves to $5M and beyond.

Fair warning:
Most founders score lower than they expect.

That’s the point.

Take it free here: scalingcfo.io/assessments
No email wall.
No credit card.
No funnel gymnastics.

Just 12 questions and a mirror.

You might not love what you see.
But you’ll stop guessing.

#ceo #founder #growth #scalingup

Stop treating video like content.

That’s why it’s not making you money.

I was in Austin and went to Aleric Heck’s “Video Authority” book launch at Self Publishing.com.

I expected marketing fluff.
I got a mental reset.

Aleric built Ad Outreach into an 8-figure company from a college dorm.

No VC babysitters.
No Silicon Valley permission.
Just execution.

Here’s the mistake I see founders make with video:

They post to be seen.
Not to be useful.

Views become the goal.
Virality becomes the metric.
Sales become the mystery.

Aleric’s framework is the opposite:

If someone doesn’t buy from you, they should still feel stupid NOT to follow you.

Give so much value that:

➡️ They trust you
➡️ They respect you
➡️ They assume you’re expensive

Counterintuitive part?

The more you give away, the more you make.

Because trust compounds faster than attention.

This is leverage.

You record once.
It sells for you while you sleep.
While you work.
While you scale.

But only if you do it right.

Here is one of the pearls I took away from his talk...

One test Aleric shared wrecked most “AI content strategies”:

In the lecture, he talked about a split-test they ran at his firm:

✓ Full AI videos
✓ Talking head
✓ AI hook + real human

The winner? Hybrid. By a landslide.

Full AI lost.

Why?

AI gets attention.
Humans get trust.
Trust gets money.

Tools multiply.
They don’t replace.

Your face.
Your voice.
Your thinking.

That’s the asset.

If you’re a coach, consultant, or expert business doing $1M–$10M and video isn’t part of your growth system…

You’re choosing slow growth.

Not because video is magic.
Because leverage is.

Read Video Authority.
It’s not theory.
It’s a playbook.

Congrats on the launch, Aleric Heck.🔥🤝

If you want the exact framework behind this, not opinions, not theory,
Aleric put the full system in Video Authority.

👉 https://lnkd.in/eN7v7eqi

#sclaing #founder #ceo #growth

What’s one AI tool you wish existed, But still doesn’t?

Share your thoughts!

I will share more in about a week.

Best

Cruz

#scalingup #growth #ceo

graphical user interface, text, application

Power of One Cash Flow Hack!

“1% changes that multiply profits”

Most businesses chase “big moves.”
The real winners? They obsess over tiny tweaks that stack.

➡️ Increase Revenue

✓ +1% Price → Big EBIT jump
✓ +1% Volume → More cash in the bank
✓ Upsell/Cross-sell → Little effort, huge gain

➡️ Cut Costs

✓ -1% COGS → Direct profit hit
✓ Trim overhead → Kill inefficiency
✓ Better processes → Faster & cheaper

➡️ Optimize Capital

✓ Collect faster → Cash now
✓ Reduce inventory → Liquidity unlocked
✓ Extend payables → Stronger cash position

➡️ Track & Multiply

✓ Measure every 1% → See compounding magic
✓ 1% here, 1% there → exponential growth

Truth: 

Small tweaks everywhere > chasing “big moves.”

👉 If you want to see where your biggest 1% opportunities are, check out scalingcfo.io

Take the free assessments and find out exactly where to focus first.

“Deciding what not to do is as important as deciding what to do.”

This becomes painfully true when you start scaling.

In the early days, doing everything feels productive.
At scale, it becomes dangerous.

Most founders don’t break while starting.
They break while growing.

Jobs understood that scale isn’t about adding more.
It’s about removing friction.

➡️ Fewer priorities = faster execution

➡️ Clear principles = consistent decisions without micromanagement

➡️ Simplicity = systems that don’t collapse under growth

➡️ High standards = quality that survives volume

➡️ Speed = mistakes fixed early, not amplified later

➡️ Strong teams = decisions made without the founder in every room

Scaling fails when founders try to stay involved in everything.

It succeeds when decision-making becomes repeatable.

The real work of scale is subtraction.
Less noise.
Less ego.
Less unnecessary complexity.

This is exactly what I help founders with, turning chaos into clear systems so the business can grow without burning you out.

If you’re scaling and feel stuck in the middle,
DM me “SCALE” and I’ll walk you through how to simplify, delegate, and grow with clarity.

I keep having the same conversation.

Founder calls me. Revenue is up -- sometimes way up. 

But they're taking home less than when the business was half the size. 

They hired the consultants. They wrote the plan. They pushed harder on sales. And somehow the business keeps snapping back to the same number like a rubber band.

After sitting across from enough of these founders, I started seeing the pattern. It comes down to three things nobody wants to talk about -- and none of them have anything to do with selling more.

I broke it all down in this week's newsletter.
#scalingup #founders #growth #CEO

I talk to a lot of founders. Like, a LOT. And something keeps coming up that I can't ignore anymore. Almost every conversation -- doesn't matter what 

Open article: The 3 things nobody tells you about getting stuck by Cruz Gamboa • 5 min read

The 3 things nobody tells you about getting stuck

The trillion-dollar scoreboard isn’t just impressive.

It’s a warning. ⚠️

AI is no longer a feature.
It’s infrastructure.

Distribution beats product.
Platforms compress margins.
Specialisation scales faster than breadth.

And the giants NVIDIA, Microsoft, Alphabet, Amazon, Meta, Apple aren’t just companies anymore.

They’re rails.

If you’re a $1M–$10M founder, here’s the real play:

➡️ Build on top of giants, don’t compete with them.
➡️ Own your audience, don’t rent it.
➡️ Go narrow, dominate a micro-niche.
➡️ Push recurring revenue.
➡️ Move faster than anyone with a board meeting.

The economy is consolidating at the top.

But execution speed is still decentralised.

That’s your edge.

If you're building between $1–$10M and want to scale intelligently, not just aggressively

Come to the workshop → https://lnkd.in/efBiFQRg

Most founders don’t have a growth problem.
They have a focus problem.

Their dashboards are full.
Their results are not.

Tracking more KPIs doesn’t make you smarter.

It just gives you more ways to avoid the hard decision.

Here’s how serious founders think about metrics:

If a number doesn’t change what you do this week,
it doesn’t belong on your dashboard.

That’s why the only startup metrics that actually matter answer 4 questions:

1. Is demand growing?
2. Are customers staying?
3. Are they paying more over time?
4. Are we running out of cash before we figure it out?

Everything else is noise.

The best operators I’ve seen track 5–7 metrics max.
They review them weekly.
And they tie each metric to a clear action.

Everyone tracks KPIs.
Very few track the right ones.

If you want to find your biggest 1% opportunities,
check out scalingcfo.io.

Free assessment.

If this helped, save it.

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The Battle

Natasha Kiemnec

Cruz Gamboa

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The Battle

Natasha Kiemnec

Cruz Gamboa

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Performance Score.css-goub6s{font-size:var(--chakra-fontSizes-md);font-weight:500;color:var(--chakra-colors-gray-600);display:block;margin-top:var(--chakra-space-1);}Natasha Kiemnec's LinkedIn Performance

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