When Should a Small Business Hire a Financial Chief? (from the New York Times)

This blog deals with some of the major issues that small, growing businesses may confront.  An article from the New York Times provides a good summary of the complex issues small businesses may face.

The article defines a number of tipping points that confront companies as they grow. But the primary issue was summarized by one business owner, who said:

“I needed to hire someone who could function as my business partner and allow me to step away from the books so I could manage other aspects of my business.”

Among the challenges that organizations face, the Times identified the following:

  • Financial Analysis, Accounting, Budgets and Forecasts
  • Insurance
  • Banking
  • Lending and Securing Financing
  • Real Estate
  • Health Insurance
  • Accounts Receivable
  • Legal
  • Dealing with Investors
  • Due Diligence in preparing for an acquisition or preparing to be acquired.

I would add cash flow forecasting and working capital management, as well as human resources and IT management, to the list. Also, the CFO is critical to exit planning.

Can’t afford or don’t need a full time CFO? 

As the Times points out, “no matter how small, any company can benefit from having a finance chief to help organize its finances and track its performance.” But, a full time CFO usually commands a six figure salary plus benefits. The solution, say the Times, is to hire a part-time CFO. It is sort of like a time-share condo: You get the high quality seasoned finance leader you need – only when you need him.

Read the article from The New York Times

I can help with many aspects of your business.  Please contact me by e-mail at andrewtucker@b2bcfo.com or by phone at 704/651-2216.

Every Company, Regardless of Its Size, Needs CFO Services.  You can now afford them with B2B CFO®..

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photo credit: _DSC3338 via photopin (license)

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