Creating a startup or small business requires determination, research, luck, and intelligent hires. An estimated 20 percent of small businesses fail after one year due to several factors. One of the most significant reasons startups fail is a lack of money and poor decision-making with the existing capital.
Strategic financial management gets moved to the backburner when you’re managing all the facets of getting a brand up and running. Finding the time for budgeting and forecasting feels impossible.
Hiring CFO services is one of the best moves you can make for your startup’s success and growth. You’ll get the financial planning and guidance you need to help your company reach its potential.
Fortunately, you’ve come to the right spot to learn more about CFO services and their benefits. Continue reading to learn more today!
What Is a Fractional CFO?
A chief financial officer is vital to your company’s financial operations. They’re the experts who help you budget and forge the best path for your company’s future. Having an experienced CFO guiding your business is like having an experienced captain guide a ship through stormy seas.
The problem is that most startups lack the capital to bring an experienced CFO on board. Fractional CFO services provide the same guidance and assistance on a part-time basis. You’ll enjoy specialized advice and planning from an industry expert with the knowledge to help you make decisions with a long-term view.
You’ll pay the CFO services an hourly rate instead of hiring a full-time CFO. It’s the best way to get financial analysis and growth planning without spending a significant part of your brand’s budget.
When to Hire CFO Services
Understanding how CFO services can assist your brand is an excellent start, but your timing must be right when hiring. Most small businesses need someone with experience handling accounting and bookkeeping. Large corporations require a full-time CFO.
If your business is making between $5 million and $50 million in annual revenue, it’s time to explore your options for CFO outsourcing. Most companies in this range can only afford to spend the money on a part-time CFO hire. Getting caught in the middle means hiring CFO services is the best of both worlds for financial planning and your budget.
What Comes With CFO Outsourcing?
You’ll enjoy several perks when you splash the cash for CFO services for your brand. In addition to the time you’ll save, you’ll receive guidance for financial planning. The part-time CFO will help you set your pricing and provide market forecasts.
The CFO’s experience will help you to increase your profit margin and find sustainability within your operations. You’ll also have someone with extensive experience managing a budget. The CFO service will analyze data and give you more insight into what to expect in your industry in the coming years.
Ensuring liquidity is a significant struggle for small businesses in the US. You want to maintain enough liquid assets to finance your business operations without going into debt or taking out a loan. The CFO will also know the market and analyze changes to help you find new growth opportunities.
Investing money in CFO outsourcing is one of the best ways to use your limited budget. You’ll receive a significant return on your investment.
Benefits of Investing in CFO Services
The benefits of investing in CFO services for your small business are extensive. If you’re looking for ways to plot your brand’s future without spending all your savings, learning more about the benefits a part-time CFO provides is worthwhile. Here’s a deeper dive into the benefits you can expect after hiring.
Savings
Your strategic financial management expert is the perfect person to help your business grow because they will save your company time and money. It’s a much cheaper route than hiring a full-time CFO to build your business.
The hire will also help you save more time. You can invest that time into managing and growing other parts of your brand. The CFO service will provide peace of mind on the financial side while you focus on marketing and product development.
Your investment in financial planning help will help your business achieve sustainability. The new CFO will put your brand on the fast track toward achieving your short and long-term financial goals. Consider CFO options like accountant Kelowna.
In-Depth Reports
Another benefit you’ll gain when investing in CFO outsourcing is intensive reports. These financial reports will give you a wealth of information to analyze your operations, competitors, and the overall market.
The CFO service will make accurate financial projections to help you make intelligent business decisions with your cash flow. Track key performance indicators to measure your brand’s growth and success. It’s the best way to stay on course toward reaching your goals.
Risk Management
Small businesses face a considerable amount of risk. Your new CFO will assess the risks in your market and industry. They’ll also analyze the regulatory risks your company faces while operating.
The CFO knows how to create risk management plans to protect your business should something go wrong. They can ensure you have the correct insurance coverage for your business. It’s a necessary step to keep your business prepared for unforeseen events.
Informed Decisions
The best CFO services will only allow you to make a decision with all the evidence and data to back it up. Making the wrong decisions with your finances can cause your company to tank.
It’s a mistake to base your financial planning on your gut instincts as a business owner. The best startups make decisions based on data and facts about the market. Hire CFO services as part of your business strategy.
Consider Hiring CFO Services Today
CFO services are a significant asset to small businesses and startups without experience in financial planning and risk assessment. With CFO outsourcing, you’ll receive guidance, data analysis, and tips to grow your business and find sustainability. It’s best to wait for help with budgeting and forecasting until your brand makes $5 million in annual revenue.
Business management and financial planning are challenging and time-consuming. Explore our Business blog content for the best guides to save time and grow revenue today!
