Growth Hacking: A CFO’s Perspective
Technology has made it easier than ever to start a company. However, this has also made the business landscape more competitive. CFOs today need to optimize for growth in ways their predecessors may not have in years past.
Growth hacking is one way to approach this problem. It’s a strategy you may be able to use to take your company to the next level. Keep reading to learn how.
What Is Growth Hacking in Finance?
Growth hacking is the process of using creative, low-cost strategies to sell more products, build a larger subscription base, or expand your company’s profile in other ways.
In finance, this typically means looking for creative ways to do more with a small budget. That could mean strategically using social media to generate organic hype around your company, trying out a new subscription model to appeal to a new customer segment, or finding another creative solution that helps your company grow.
A CFO’s Growth Hacking Strategies
Successful growth hacking has a profound impact on your company. The following best practices are essential to the process.
Customers and non-customers generate large amounts of data whenever they visit your site, engage with a company representative, or make a purchase. You can use this data to guide you towards effective growth hacking solutions. But you need to gather it in order to do that.
Once you start analyzing data from all of your streams, you can begin testing a variety of subtle changes to see how they impact results. This could mean trying out two slightly different marketing messages or changing a salesperson’s approach during various funnel stages.
The key is trying out new things and watching what they do to your data. This can help you discover new opportunities for low-cost growth.
Optimize for Flexibility
Growth is a process that inevitably involves changing the way you do things. Financially, this means your company needs to be adaptable enough to pivot when new opportunities arise. That may mean limiting your long-term commitments or finding more scalable strategies that can grow with your business instead of requiring a large upfront financial commitment.
Focus on Resource Allocation
One of the key themes of growth hacking is doing more with less. Your goal should be to funnel your investments into the most promising opportunities for growth. This may involve cutting back in some areas so that you can spend more on marketing, sales strategies, or employees who bring more value back to the company.
Remember Your Risks
Growth hacking can mean a lot of change for your company. To a certain extent, that’s necessary to get where you want to go. However, there are always risks in shaking things up. It’s important to keep this in mind as you make progress, as pursuing growth blindly can put your business in a worse place than it is today.
Get an Expert’s Help While You Focus on Growth
Companies can scale faster with growth hacking. However, this may leave you with less time to focus on critical daily tasks in areas like accounting. That’s where CFO Hub can help.
We offer a variety of accounting and back-office support solutions that can help you free up time to pursue your vision. Schedule a consultation with us today to learn more.