As a small business owner, you have a lot on your plate. So why not enlist the help of an outsourced CFO? They'll handle the minutiae so you don't have to.
As a small business owner, you have to realize that you are good at certain things, even great at them. They could be things like drumming up new business or coming up with new products to sell or make.
But small business finances might not be one of your fortes. So then, what do you do? Well, one idea that could work well is getting an outsourced CFO. Didn't know that was even a possibility? Well, it is.
The main reason why a remote CFO is a crucial thing for a small business is due to cash flow. 82% of small businesses fail due to cash flow problems. A CFO is a senior executive in a company that's responsible for tracking cash flow and financial planning.
If you are a small business owner and you don't want to go the same way as 82% of businesses that don't make it due to cash flow problems, a remote CFO could be the solution to all your nighttime terrors about finances.
Read on to see how an outsourced CFO can help your small business thrive.
1. Cost/Time Savings
The main reason why you would be inclined towards outsourced CFO services is due to the cost and time savings it entails.
As a small business owner, you are probably struggling as it is with the financial ins and outs of your business. As your business grows, the financial situation gets more and more complicated, too complex for you to wrap your head around it.
With one 'hire', you can get the benefits and capabilities of financial consulting services under your business umbrella. No need to hire a whole team of financial and accounting people.
Also, because you are making one 'hire', you won't have to fork out as much to take care of your outsourced CFO's salary.
You won't spend months and months hiring people, nor will you have to deal with an entire team to get your financial planning and management done.
2. Grows With You
The fortunate thing about being a small business owner is that things are never humdrum. The unfortunate thing about being a small business owner is also the same.
Things are always changing in the small business realm. You have to keep on top of it all, marketing, finances, sales, new government regulations, product launches, and more.
You are one person. How are you supposed to do it all? Well, by outsourcing some of your tasks to a remote CFO who can take some of the burdens off for you, and who will grow with you.
As your financial management needs to become more complex, the remote CFO will be able to accommodate that change.
This is unlike an in-house team that would constantly have to be hired, fired, trained, and upgraded. Who has time for all that anymore?
The world is moving too fast for anyone, especially you, to be sitting around, reading resumes, and hiring new employees.
3. Competitive Strategy
The main thing about being a small business owner in a rapidly expanding atmosphere is that you need to stay competitive. And one of the best ways to do that is to stay on top with a competitive strategy.
But if you are too busy with marketing and sales, to pay attention to financial strategy or reporting, then you need an outsourced CFO on your team.
Even though you might imagine that financial reporting, strategy, and management is something that can wait until you are big enough, you are wrong.
It needs to be taken care of now, and later, and forever after that. Without proper financial reporting and information, you will not be able to make the decisions that will propel your business into the growth arena that you wish to be in.
If you want to stay stagnant, and forever struggling, then you can skip the remote CFO. But if you want to stay on top of the market trends, by adapting your financial decisions to it, then an outsourced CFO is necessary.
4. Exit Strategies
You didn't start this small business so that you could work 18-20 hour days for the rest of eternity. You had some sort of exit strategy in mind when you began. Perhaps you wish to grow the business to a certain level and find a buyer for it.
Or maybe you want to find someone else to head it, while you become the acting President or go on the Board of Directors.
Whatever your exit strategy might be, an outsourced CFO can help you plan it, and work up towards it.
First comes astronomical growth, which is helped along with proper cash flow and financial management.
Then comes the potential to prepare the business for sale, or an IPO.
You can't do all this on your own. You need an experienced team of financial experts on your side to make this happen. It's possible if you hire financial consulting services.
5. Objective View
You probably view your small business or start-up as a precious part of your life and family. You have been with it from the beginning, and you might not be very objective about it anymore.
Because of this non-objective behavior, you might end up making decisions that are detrimental to the future growth of your company.
An outside team of financial consulting services will be able to take care of your business with the objective care that it deserves. They will be able to make those slash and grab decisions that would perhaps be difficult for you.
You started your business with a lot of heart and that's great. But as your business grows it's time to move into the objective mind view of things.
Outsourced CFO Is That Next Crucial Step in Your Business Growth Plan
If you are thinking that your small business isn't ready for an outsourced CFO yet, think again. You don't have to be making millions or ready to IPO your company before you start thinking about getting a remote CFO.
The remote CFO grows with your company, so they can start small, and grow as you grow.
If you are interested in learning about our outsourced CFO and accounting services, please book a discovery call with us.