All businesses require the support of an experienced high-level financial professional looking at your “big picture” strategic goals as well as managing the company’s financial performance and controls.
This is the role the CFO fulfils in most companies.
This is commonly overlooked by small businesses, which is not surprising as in most cases the business owner will come from a marketing or technical, industry specific background.
Companies with annual revenue under $20 million can seldom afford or justify a full-time chief financial officer (CFO) even though they would love to have that high level strategic and financial expertise in their team. They really don’t have a need for top-level financial talent full-time.
A good full-time, CFO with years of experience can command an annual compensation package of $200,000 to $500,000 or more, depending on their experience, company size and location.
That’s a big chunk of money at this stage in your business’ development.
But what if you could have a highly experienced CFO as part of your management team, let’s say, just 2 days a month at critical times, to finalise the Monthly Executive Report and attend your executive committee meeting (either at your offices or remotely via Skype or Zoom) and to provide ad-hoc assistance when required by phone, Skype or Zoom meetings at your request.
The pro-rata annual cost for that could be just $20,000 to $50,000. That’s just $1667 to $4167 a month. Less than an administrative clerical person. And there are no oncosts such as payroll taxes or annual leave payments.
That’s precisely why more and more small and medium-sized companies are engaging a “
So, if you have a growing business that can’t yet afford or even require a full-time CFO, our Virtual CFO service could be just what you need. That would allow you to focus on doing what you do best rather than spending your time managing your finances, with the comfort of knowing you have a trusted financial expert doing that for you.
David is highly experienced at top-management level, with over 25 years’ experience at “C” level (CEO and CFO) in general management, financial and operational management positions in large corporations (including 2 of Australia’s top 50 companies), mid- sized companies and new start-ups, in multiple industries, and in 6 countries.
As your virtual CFO, David will work with your business on an “as needed” basis. The great thing is that you only pay for what you need, tailored to meet your specific requirements.
With a proven track record as a successful CFO and CEO, David has probably been there and done what you need help with right now, on a number of occasions and in different industries, during his corporate career.
David’s combination of experience and achievements provides the ideal combination for SME’s requiring an affordable solution for their financial and strategic business management challenges.
Whether you require ongoing Virtual CFO services or just a one-off or occasional “financial health check” David can help.
To learn more about David’s skills experience and major achievements and to see what people who have worked with him have to say, click on the link below:
What Does a Virtual CFO Do?
A virtual or part-time CFO can help you and your executive team to focus on key strategic and financial elements rather than get lost in the day-to-day operational details of the business.
They are very cost effective and offer an outside perspective that delivers invaluable input and insight into strategic decisions.
Good Chief Financial Officers Focus On Much More Than Finance
The job of chief financial officer (CFO) may sound like a nightmare assignment to entrepreneurs coming from a technical or sales and marketing background, but the tasks and skills required are key to the success of every start-up and growth business.
Those tasks need to be managed to the annual budget and long-term business plan, and your outsourced CFO will have the understanding, experience and skills to make sure every member of your team does exactly that.
Your new virtual CFO, will take the following steps:
Step 1. Get to know you, your team and your business, and to establish a trust factor as a foundation for the ongoing relationship.
They will want to know what’s bothering you as the business owner, the most. Your financial statements will tell them the ‘what’, but not the ‘why.’ It is important for them to understand both. I.e. the underlying Cause as well as the Effect.
Step 2 Funding: In today’s economic environment the new interim CFO must quickly establish that the business has sufficient sources of funding available to withstand a downturn, or a serious competitive attack
They can take the lead in finding professional investors or innovative sources of funding to secure your business and to fund your growth. Looking for opportunities to maximise alternative funding sources, and reducing the cash burn-rate in your business.
Step 3 Business Structure and Set-up: They will make sure your business is set-up and managed to be in the best possible position to attract additional funding well before it is required on an ongoing basis.
Step 4 Review your operational processes and procedures. As start-ups grow from a development organisation to a sustainable and repeatable business, processes must be documented, employees hired and trained, and a customer-support organisations built.
Your virtual CFO can review the processes and systems in your business and make recommendations to upgrade if they believe they are lacking or unable to support the growth of your business to achieve your business plan or exit strategy.
Step 5 CFO’s are a trustworthy advisor and mentor to others in your organisation. The broad skill-set they bring with them, strategic thinking, financial expertise and passion for success make most CFO’s willing, inspiring and skilled mentors and coaches to your team members at all levels.
Step 6. They will be able and willing to tackle many challenges outside the financial realm; Being a CFO is more about a way of thinking than it is about applying one specific template that will work for every company. Every company is unique, but for most companies the key issues are surprisingly similar. An experienced CFO will understand that and apply their knowledge and experience accordingly.
They will demonstrate their leadership, collaboration and communication skills from the outset. They will be proactive, results-orientated, positive, and happy to get their hands dirty and have the ability to make things happen.
Another potentially important benefit is that Investors know that the start-up road is long and challenging. Thus, having an outsourced CFO as soon as you are able, will be looked on positively by both your current and future debt providers and investors.
But Do I Need One Now?
Now that you know what a CFO does answer the following questions:
- Are you constantly worried about cashflow or experiencing cash shortages?
- Are you losing sleep, worrying over the direction of the business?
- Are you concerned that you don’t have the level of financial expertise you require?
- Do you wonder whether you are paying more tax than you should be?
- Are you working overtime on tasks that are unrelated to growing the business, such as determining what bills to pay, considering issues related to tax liabilities and preparing for meetings with bankers, accountants and lawyers?
- Are you concerned about the security of your business and its financials?
- Is your business failing to make adequate margins and profits to finance growth?
If you answered yes to any of these, you should consider bringing in a virtual CFO.
Your Next Step
I hope you have found the above overview informative and useful.
If you believe David might be able to assist you as your virtual CFO, to take your business and life to the next level, and you would like to learn more, or request more information, you can request more information using the link below.
Request More Information:
If you have any questions about our CFO or other services or fees, or to set up a Free Strategy Session with us you can:
In the message box please mention “Virtual CFO” and your Mobile Phone Number and we will get back to you shortly.