As a small business owner, a startup, or a scaleup, you wear many hats. You’re the charismatic visionary, the logical accountant, and the marketing expert all in one. While you may feel that you have all the skills necessary to keep your company growing and profitable, sooner or later you will reach a wall. That’s when you need a chief financial officer (CFO) to come in and help take your company to the next level. A CFO can help your business grow by bringing a variety of essential skillsets to the table that most small business owners don’t have themselves. A CFO can take on tasks like:
Find and analyze new business opportunities.
A fully-functioning CFO has the analytical skills to find new opportunities for your business. This may include searching for new clients and partners, evaluating new product lines, or exploring new investment options. By doing this, your CFO will be able to glean insights from the data that you currently don’t have, so you can make informed decisions about growing your company.
Manage your company’s accounting and finance.
As a small business owner, you might know the ins and outs of your financials inside and out, but you don’t have the time to fully audit your finances each month. A full-time CFO, however, can dedicate all of their time to making sure your finances are in order. A CFO can manage your accounting, such as setting up your bookkeeping and helping you find tax-saving strategies. They can also manage your financial projections, helping you make data-driven decisions about everything from hiring new employees to paying down debt.
Help build a strong financial and operational foundation.
While you might be great at forecasting your company’s sales numbers for the next quarter, a CFO can help you plan for the long term. A CFO can help create a financial plan for your company, which will include everything from budgeting for new hires to setting up a retirement savings plan for your employees. A financial plan for your company will help you start thinking about long-term goals like hiring an outside investor or buying a new building for your business.
Grow your employee base and benefit from economies of scale.
As your business grows, you’ll need to start hiring employees. A full-time CFO can help you make sure that you’re hiring the right people and setting up a successful HR department. Your CFO can help you decide on the right employee benefits, including health insurance, retirement plans, and paid time off. A full-time CFO can also help you navigate hiring contractors to fill out your HR department when you need to scale up but can’t afford to hire a full-time employee.
Protect your company with insurance and risk management strategies.
As your business grows, it will face new challenges, including risks and threats from outside forces. Protecting your business from these threats will help you keep your profits high. You can do this by having a CFO help you with risk management strategies, like securing the right types of insurance for your company. You can protect your company from common risks, like property damage and employee lawsuits, by having the right insurance policies. A CFO can help you navigate the complexities of finding the best insurance providers for your company.
Conclusion
As a small business owner, you’re responsible for a lot. You need to make sure your team is productive, your finances are in order, and your clients are happy. A full-time chief financial officer can help you get a better handle on these important business functions. With a CFO on board, you can spend less time crunching numbers and more time growing your company.