Business owners face some of the biggest challenges in the today’s economic climate, from trying to juggle finances to incentivising staff retention, and doing everything single-handedly.
The world we live in is changing fast. Not only have SMBE’s been forced to navigate uncharted waters with a global pandemic, adapt to a workforce who wants to work from home, but also adapt to changing technology and digital marketing avenues like Instagram and TikTok.
As the old adage goes, “No man is an island!” No matter how well-educated you are or whether you’re the seasoned owner of an international conglomerate, no one can be an expert in every field. Sometimes, the biggest challenge you can face as a CEO is admitting you need help. Having back up like a Chief Financial Officer, someone who can take control of the forecasting, reporting and take over the purse strings allowing you to concentrate on operations can be an enormous help. Before you scroll past this article, thinking to yourself ‘I can’t afford to pay a CFO’, you can get expertise for the fraction of an annual salary by outsourcing.
An outsourced CFO can become your trusted advisor in times of frustration. They become part of your company on an as-needed basis, so you’re not committed to trying to meet a full time management salary when finance already feels stretched.
Now you understand the basic concept of an outsourced CFO, and you’ve conceded that you need help, what are some of the biggest challenges businesses face today that you can get assistance with.
Knowing how to systemise and structure a business
Having a great business idea and starting up a business doesn’t mean that you have the know-how on how to structure a business or create systems for streamlining operations. And that’s okay! An outsourced CFO can be a sounding board and help you steer your business in the right direction.
You may have a start-up, and it’s ticking along. It’s making enough money to cover your bills and pay a staff member or two, but it’s time to kick it up a notch. In an economic climate where prices of everything are on the rise, what’s the best way to scale and grow your business? An outsourced CFO will be able to provide you with independent advice, an outsider’s perspective without being ‘emotionally’ involved with your business.
You lack the confidence to make financial decisions. A CFO takes into account your financial situation, can look at your incoming and expenditure and help you make informed decisions. For example, is there the money to upgrade computer systems or software? How much is required each week to pay wages? Is there room to give one of your most valuable staff members a pay rise? Are you complying with ATO regulations?
When you’re hemorrhaging money and struggling to make ends meet, an outsourced CFO can conduct an audit of finances and employees. Do you have surplus staff that are preventing you from reaching your financial objectives or aren’t aligned with your company goals? Restructures are never easy, but at the end of the day you need to do what’s best for your company. And if you’re not comfortable playing the ‘bad cop’, an outsourced CFO can fulfil this role.
You might be an ideas person, but terrible with money. The challenge of budgeting is best left with someone who’s passionate about systems and processes. Hiring a CFO to provide workable budgets in the long term can save your company money. From ensuring you have enough money to pay staff to tightening the purse strings in morning tea supplies, a budget will give you insight into where your business is financially and whether you can afford to invest in new technology, more product or even reward your staff with an annual bonus.
You’ve got the know-how, you simply don’t have the time to do everything. A CFO can be your second pair of hands. Let them focus on key growth opportunities, employees and end processes, leaving you to deal with the daily distractions or free up some hours to be more involved with family life.
Unlike a business mentor, a CFO works internally and understands your processes, goals and is essentially your right-hand person to assist your business to grow and succeed in spite of the biggest challenges businesses face today. With a good CFO (even on a temporary basis) working alongside you, you don’t have to overcome these hurdles alone.
Call us today 1300236463 and book an appointment for help in your business.