In all aspects of life, there are times when choices and decisions
have a more lasting impact than others.
Where to live, what to wear, what car to buy, what coffee to have – all require a decision. Just the Impact of these decisions can vary on more than the here and now.
So, if you are in business, when do you know that the time is right to seek the support and advice of a CFO? There is no manual that tells you that at a certain point this is what you must do. Each business is different and must always be treated as unique. However, there are some challenges that are more common than what you may think and this will help guide the decision-making process.
Reporting and Analysis
- Do you have regular reports that show the performance of your business in key areas?
- Are you able to analyse data and information to help you make informed decisions?
- Are your reports too complex to understand?
Cash flow and working capital
- How often do you look at your bank account?
- How far in advance do you produce a cash flow forecast?
- Do you worry about the working capital requirements you have in the short term?
- Are your customers keeping to their terms and are suppliers having their terms met?
Business Growth
- Are you able to focus on the areas you feel can help your business grow?
- What is the impact on the current operation of future plans?
- Is growth possible with the current structure of funding you have? are there alternatives available?
Profitability
- Are you getting the results you believe you should from your business?
- Why aren't you seeing the benefits of the hard work and sacrifice you make?
- What options are there to help drive through improvements and change?
Policies and Procedures
- Do you make every decision in the business? Is this a hindrance to you and the organisation?
- Do you have a consistent approach to all your business activities?
- Can you clearly identify what each purchase or investment was for and when you will see a return on that expense?
Support and Accountability
- Do you have the support in place to challenge and discuss decisions with?
- Do you celebrate success with your colleagues and employees?
- Do you need a second opinion?
If some of the points made are challenges you are facing, it may be the time to investigate the advantages of having a CFO in your business can bring.
The size of business you have, the sector you operate in and the products and services you provide should not matter – the services that a part-Time CFO can provide are driven by the requirements you have.
Don’t believe that only businesses of a certain size need a CFO – the ability to grow and release the potential of your organisation can begin at any stage. The Services you require will be tailored to meet the needs you have both now and in the future.
