Cowboy Forecasting: The Power of Fast Informed Estimates on the Back of an Envelope

In this episode of the "Run the Numbers" podcast, CJ interviews Kevin Drost, CFO of New Era ADR, about his unconventional career path from music talent scout to finance leader. Kevin shares insights from his time at Sony and Reverb, drawing parallels between the music industry and venture capital. He discusses the importance of simple forecasting, understanding the customer, and promoting financial literacy within a company. Kevin also details how New Era ADR is disrupting the legal industry by offering flat-fee dispute resolution services, emphasizing the role of finance in rethinking traditional pricing models.

Outlines

Part 1: Introduction and Transition

Part 2: Forecasting, Customer Understanding, and Transparency

Part 3: New Era ADR and Career Advice

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Run the Numbers

Part 1: Introduction and Transition

Introduction to Kevin Drost and His Journey from Music to Finance

The Value Proposition of a Record Label and the Pressure to Replicate Success

Kevin's Transition to Reverb and the Appeal of Building a Company

Part 2: Forecasting, Customer Understanding, and Transparency

The Art of Cowboy Forecasting and the Importance of Simplicity

Making Educated Guesses and the Importance of Customer Understanding

Communicating Financials to the Entire Company and Disrupting Legal Services

Part 3: New Era ADR and Career Advice

Finance's Role in Rethinking Legal Pricing and New Era ADR's Business Model

Identifying Ideal Use Cases for New Era ADR and Kevin's Career Advice

Kevin's Finance Software Stack and Podcast Outro

Cowboy Forecasting: The Power of Fast Informed Estimates on the Back of an Envelope

Run the Numbers

Part 1: Introduction and Transition

00:00Introduction to Kevin Drost and His Journey from Music to Finance

Introduction to Kevin Drost and His Journey from Music to Finance

07:33The Value Proposition of a Record Label and the Pressure to Replicate Success

The Value Proposition of a Record Label and the Pressure to Replicate Success

16:57Kevin's Transition to Reverb and the Appeal of Building a Company

Kevin's Transition to Reverb and the Appeal of Building a Company

Part 2: Forecasting, Customer Understanding, and Transparency

27:12The Art of Cowboy Forecasting and the Importance of Simplicity

The Art of Cowboy Forecasting and the Importance of Simplicity

35:10Making Educated Guesses and the Importance of Customer Understanding

Making Educated Guesses and the Importance of Customer Understanding

45:58Communicating Financials to the Entire Company and Disrupting Legal Services

Communicating Financials to the Entire Company and Disrupting Legal Services

Part 3: New Era ADR and Career Advice

57:08Finance's Role in Rethinking Legal Pricing and New Era ADR's Business Model

Finance's Role in Rethinking Legal Pricing and New Era ADR's Business Model

1:04:13Identifying Ideal Use Cases for New Era ADR and Kevin's Career Advice

Identifying Ideal Use Cases for New Era ADR and Kevin's Career Advice

1:18:04Kevin's Finance Software Stack and Podcast Outro

Kevin's Finance Software Stack and Podcast Outro