Six reasons why you need a CFO
THERE are two types of people reading this article - those who have a CFO (Chief Financial Officer) in their business and those who don't.
I suspect that a large majority of you fall into the second category. But how many of you should fall into the first? Let's explore why your business may need a CFO more than you know.
1. You want to grow your profit rapidly.
Now I'm fairly sure all business owners would quite easily fall into this category - who doesn't want to make more money from their business? However, growing profit isn't quite as easy as it sounds, and a CFO has to take into account a large range of factors that may be holding you back.
2. You don't feel like you end up with enough profit for the effort you put in.
If you have a business that's not making a decent profit, then you've just got a full-time job with extra stress. A CFO has the business smarts and financial knowledge to turn your man-hours into money - and lots of it.
3. You have no idea what your business's financial position is right this second.
And you may not even care! For some people, money and numbers are like another language entirely - sometimes incomprehensible. The truth is that big businesses don't operate this way - and they didn't get to be big by operating this way. Even if it's all Greek to you, you need to know your numbers. A CFO can even act as a translator, and make those strange numbers make sense.
4. You don't know what your three largest expenses are or how you could reduce them.
Again, this may not be of concern to you right now, but a CFO works on actively reducing expenses and minimising your business's wastage. Wouldn't it be nice to have that taken off your already full plate and given to an expert who can do something about it?
5. You base financial decisions on 'gut feel' rather than solid advice.
We're not shaming you if you currently do this - you (most likely) don't have a background in finance, and you might not have the right trustworthy people around to ask for advice. However, if you had a CFO...
6. You can't seem to keep up with technological advances because you're too busy running your business.
Have you got a smartphone? Do you run your business on cloud-based apps? When was the last time you updated your computer? If you don't know the answer to these questions, then a CFO is your answer. Besides keeping you financially up-to-date, a CFO can also make sure your business is at the forefront of technology and staying competitive.
If at least three of those apply to your business, then you need a CFO. Got a spare $100,000 per year? If you do, start looking today for your new CFO. If you don't (and not many people do!), there's a much more affordable option (and something we offer) - a part-time CFO.
A full-time CFO wouldn't be much good in a small business, so a part-time CFO makes perfect sense...and for a fraction of what a regular CFO would cost!
Think about it today - how could a CFO change your business for the better?