As a startup it is natural that you will not appoint a CFO as during those early days it will be you who will be managing the role of a CFO. However, as you start growing a time will come when you will need a CFO to manage the financial affairs of your business. These are the situations when your business too may need a CFO. Maureen O’Connell, Scholastic’s CFO , briefly explains the when small business should hire a CFO in this video.
When your business is entering the growth phase you will need a CFO. Rather during such time the CFO will be an asset to your company. Your business will be going through situations when you need to take tough decisions. These decisions should not be taken just like that; they need to be based on analysis of data. A CFO can do that and help you take the right decision. Apart from that they can help you manage the balance between long term goal and short term goal so that you fulfill the short term ones to reach the long term goals. .
During your growth stage they will be the perfect man to strategize different policies that will help your business generate more revenue.
To handle complexities
While running the business there will be complexities and this is again where a CFO will be of great help. They can identify the efficient lots and help you improve your bottom line. One the bottom line of the business prospers you will find that your overall business too is prospering.
When it comes to managing the stakeholders it is quite a complex job. A CFO will be your ideal hand in managing them. Preparing the necessary reports of growth, understanding the areas that need development and working on them, analyzing your supply chain and making it cheaper, all these will be handles efficiently by a CFO.
To add experience
You must be happy with your existing team of management, but if you find that it lacks some experience then adding a CFO may help your business. They will be your help for data analytics, share their past experience to add in new values to your business.
Actually, there is no such pin point when you can say that yes, it’s time to hire a CFO. There can be many such situations faced by you while you run the business. A CFO can be the right decision if you want to add in experience, analytics and financial expertise at the same time.
Image Credits: Charles Aris