What Are the 5 Signs You Need a CFO?
As your business develops, it may feel like you’re missing something. Things are going well, but they could run a little smoother. These five signs may indicate that the missing link is a CFO.
1. Rapid Growth
Growth represents success, whether that entails more revenue, more customers, or more locations. Rapid growth is a dream come true for most business owners, but it can come with its own challenges that need to be expertly handled.
Whether your new mobile app has gone viral, with new customers flooding in, or you’re setting up new locations for your restaurant chain and need to expand your payroll, having an experienced CFO handling the process is crucial. It’s easy to feel overwhelmed during a period of rapid growth, which can lead to mistakes. Being able to rely on an expert to handle all the financial details allows you to focus on running the business.
2. Complex Financial Operations
As your business grows, so, too, may the complexity of your financial operations. It’s not necessarily about only the increased quantity of transactions, but also their variety. An experienced CFO can install a system that easily handles everything for you.
This newfound complexity could come with a wide range of issues. You may, for example, start expanding internationally and have to organize transactions across multiple currencies. You may be setting up a subscription-based service and need to track metrics like “churn” for the first time. Your operation may be a nonprofit that needs to ensure compliance when receiving donations and grants from a growing number of sources. Whatever the complexities are, finding a CFO with experience in that area will allow your business to keep growing.
3. Strategy Development
The modern CFO is much more than an accountant. While they will certainly ensure your accounts are well-maintained, their remit extends much further than that. They’ll be a fully fledged member of the C-suite, responsible for interacting with other department heads to contribute to a holistic company strategy.
Businesses often have a marketing and growth plan but lack the expertise to reinforce it with financial planning. A CFO will provide financial clarity to your overall business strategy.
4. Investor Relations
If you’re looking to secure funding from a growing number of investors, having a professional CFO to manage this process is crucial. As you move through every investment stage, from seed funding to Series A and beyond, your pitch needs to be stronger and more professional. An experienced CFO will ensure all pertinent questions are answered and everything is in place to secure the funding you need to grow.
They can then help manage your company’s relationship with investors. Whether it’s private equity or investors from a large bank, your CFO will be able to speak their language, allowing you to focus on growing the business.
5. Compliance Issues
Complying with local, national, and international laws and regulations can seem overwhelming, particularly as your business grows. Having an expert deal with all of the legal requirements takes enormous stress off your plate. If you’re feeling weighed down by the pressure of dealing with seemingly endless regulations, it may be time to get an expert CFO to take care of them for you.
Hire a CFO
If you want to learn more about how a CFO can help your growing business, book a free consultation session with us today. We’ll take you through all of your options step by step.