In this episode of First Principles Finance, Colin Anderson tackles a critical challenge founders face as they scale: the tension between what sounds right in theory and what actually works in practice. Drawing on real questions from founders in the network, Colin explores how organizational design decisions—like layering leadership or upgrading finance functions—often look clean on paper but break down in reality.

He walks through two core scenarios: structuring go-to-market teams across different business lines, and deciding when to transition from outsourced finance to an in-house function. Along the way, he introduces a powerful first-principles framework rooted in understanding the “physics” and rhythm of your business—emphasizing experimentation, risk isolation, and designing for your specific stage, not someone else’s playbook.

This episode is a practical guide to cutting through conventional wisdom, trusting your own judgment, and building organizations that actually work in the real world.

Key Points From This Episode:

· 00:00 Intro: First Principles Finance & Episode Setup
· 00:47 The Core Theme: Theory vs. Practice in Organizational Design
· 01:27 The Trap of Clean Org Charts vs. Operational Reality
· 02:01 First Principle: Design Around the Rhythm of Your Business
· 03:06 Why Premature Layering Kills Insight and Increases Risk
· 04:55 When to Transition from Outsourced to In-House Finance
· 06:05 The Three Core Finance Skill Sets: Past, Present, Future
· 07:20 Final Framework: Build for Your Business, Not the Average

Learn more: https://www.fafc.com/