The Benefits of Hiring a Temporary CFO During Periods of High Growth
High growth is a dream scenario for most companies. So when these times finally arrive, it’s easy to forget that they bring their own challenges. Just like you needed a financial plan to get through periods of stagnation, you’ll need the right strategy to optimize your performance during a period of high growth. Partnering with a temporary CFO is a great place to start. These financial experts can support your business while it grows in each of the following ways.
Immediate Access to Scaling Expertise
| Metrics | With Temporary CFOs | Without Temporary CFOs | Industry Benchmark (SaaS) |
|---|---|---|---|
| Revenue Growth Rate | Up to 26% Year-over-Year | Estimated 10-15% | 15-20% MRR |
| Operational Efficiency | Enhanced | Moderate | Varies |
| Implementation Time for Growth Strategies | Reduced | Standard | N/A |
Periods of high growth can be more chaotic than many entrepreneurs expect. The heightened demand can turn reliable processes obsolete and create an ongoing need for updated financial projections. You might also need to invest in new buildings, products, and technologies to keep up with your increased demand. A skilled temporary CFO can help you manage all of these changes as your business scales. They can also begin supporting your business immediately — instead of after a lengthy hiring process. This could be just what you need to manage your growth more effectively.
Buy Time to Assess Your Long-Term Needs
Periods of high growth often lead companies to add more financial expertise to their leadership. But it can be hard to see exactly what your company needs over the long term when you’re in the middle of these manic phases of change. This is another reason why a temporary CFO could be valuable. They can provide the support you need now, without forcing you into a commitment you’re not ready to make. That way, you can wait to make a permanent decision about your company’s financial leadership until your growth stabilizes and your projections are clearer.
Maintain Compliance in Changing Conditions
Hiring a temporary CFO can also help your company manage its compliance while rapidly growing. This is especially valuable if you operate in an industry with special obligations like, medicine or food. A temporary CFO can support your team by:
- Auditing financial statements
- Evaluating internal controls
- Teaching you about new regulations that may apply
- Assessing compliance risks
- Training your in-house team
The CFO’s support will also free up your leadership team to focus on managing your growth. You’ll be able to spend your time where it adds the most value to your business instead of constantly looking over your shoulder for compliance problems.
Plan Your Next Steps
You may have spent years working to reach the phase of heightened growth your company is enjoying now. But when all of your dreams for the business arrive, what will you do next? That’s a question a temporary CFO can help you answer, too. Your outsourced CFO can help you evaluate the financial ramifications of different kinds of expansion. Whether you want to hire more people, add a new warehouse, or open a second location, a skilled temporary CFO can ensure you have the right financial plan to make it happen.
Get More Out of Growth With CFO Hub
Periods of high growth can bring their own challenges to your business. If you’d like some help with navigating them, consider connecting with CFO Hub. We offer immediate access to highly skilled temporary CFOs so you can get the support you want faster. Get in touch today to learn more about how we can help.