Thu. Jun 20th, 2019

When is the right time to call in an outsourced CFO?

So, your company is built on tech and innovation – and it’s ready to move.

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You’re on top of trends like digitalisation, AI, cryptocurrency and exploding new industries like space and IoT. Changing times bring about incredible new opportunities. And one thing is for sure – doing business will never be the same again.

However, changing business models and rapid market shifts require a founder team to be sharper and faster than ever before. New opportunities also come with new risks. There are more complexities to navigate and more tasks to complete to ensure that your business comes out on top.

Why you need a CFO

A key skill to have on board in this changing economy is that of the CFO or Chief Financial Officer. The CFO is your go-to finance person. They hold the reigns of company cash flow, financial strategy and risk mitigation. They make sure that your business runs on world class systems, and that you are able to raise that next round of growth finance.

When you are building your idea and gaining first market validation, odds are that you don’t need a CFO yet. And a full-time CFO is probably only a must-have after turnover has broken many tens of millions.

But what about the space in between? Let’s call it the scale-up phase. That year 2,3,4,5,6,7 where your business is growing rapidly, but where it does not quite need the burden of a full-time CFO yet. This is the phase where it is critical to navigate growth effectively. This is the phase that is perfectly suited for an outsourced CFO – a go-to finance expert that can advise you on the complexities of financial management and business.

When to make the jump

How do you know when it’s time to make the
jump? There are certain “trigger points” that indicate that you might need to
look at an Outsourced CFO to help take your business to the next level. These
trigger points can be proactive or reactive.

Reactive trigger points are the ones you
want to eliminate from your life. They include things like:

  • Your books say that your
    company is making profit and you are paying tax, but there never seems to be
    cash in the bank;
  • A potential investor is asking
    for a financial forecast, but you have no idea where to start;
  • The tax man is knocking on your
    door, asking questions about tax types you are unsure of.

These kinds of scenarios are stressful. If any of them describe how you feel, it might be time to call the experts in and get an Outsourced CFO.

Proactive trigger points are things you
desire for your business going into the next phase of scaling up. They include:

  • Your turnover is growing fast.
    You want to engineer your business to be even more profitable;
  • You want to have live access to
    financial information and key metrics to help you make better decisions faster;
  • You want to attract an investor
    soon. You need to prepare, package and value your company;

If this resonates with you, for all the
right reasons it might be time to get the experts in.

Building a successful company is incredibly tough. Don’t be left out in the dark. Join the pool of successful founders who are turning and raising hundreds of millions. The thought leaders and change-makers who make sure that their business growth is in the capable hands of an Outsourced CFO.

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