Recent Articles

Nov 1Mike Rodems

When Should a Small Business Hire a Finance Chief? – The New York Times

Nov 1Mike Rodems
Slanted Picture Of A Clock Hallway

 

 

This piece deals primarily with growing businesses and some of the major issues they confront. I recommend this article from the New York Times as a good summary of the complex range of issues that all small businesses 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

photo credit: Time via photopin (license)

B2B CFO®

Free Discovery AnalysisTM

Fill out the form to receive your
Free Discovery AnalysisTM (a $1600 value)