There comes a point in the lifecycle of any successful startup or small business where growing pains are inevitable. Just like a gangly teenager who’s outgrown their clothes, you’ve likely outgrown the core financial processes and strategy that got you where you are.
As you’re entering your “awkward phase,” you could likely benefit from some expert financial guidance to help your business mature and thrive.
Enter the Virtual CFO.
Startups and SMBs alike can both benefit from the services of a Virtual CFO – a remote CFO Consultant. These part-time financial professionals have made their mark in corporate or VC financial executive roles, and have opted for the flexibility afforded by remote consulting gigs – Though you won’t find any CFOs on Fiverr.
A Virtual CFO works on the same basis as an in-house CFO consultant, but their remote nature gives you a larger pool of candidates in which to find your ideal fit, and their hours can scale based on your company’s needs. Like any employee of a small company, they wear multiple hats and shift their resources towards initiatives that will best serve your needs. Many CFO consultants start at only a few hours a week, and as they help your business grow, become more involved over time.
When should a startup consider bringing on a Virtual CFO?
Having a part-time CFO sets your business up for success as they help you tackle raising capital, solving cash flow issues and tight profit margins, implementing new financial analysis and reporting systems, and preparing for growth.
If you recognize yourself in any of the following four scenarios, you should consider employing CFO services:
1. You’re growing fast and need to scale up your hiring, systems, and processes
Growth is great, and what all ambitious businesses aim for – it just needs to be done sustainably. If your business is expanding, rapidly hiring new employees, adding new products, or launching in new markets, a CFO can help manage your costs.
2. You are lacking context from your numbers to help make decisions
Major business decisions should not be made lightly. If you’re running a young business, it may be that 6 months from now you could completely pivot on your current business model. But if you make these decisions without the proper financial context and outlook, you could be heading for rough waters. CFO Consultants help you interpret your current financial straits within a larger context so you can execute on major business decisions with confidence.
3. You’re struggling to keep up with all the moving parts of your growing business
Is your head spinning with managing the finances related to the rapid addition of new employees, partners, investors, suppliers, vendors, and contracts? Managing all these sources of both cost and revenue may be beyond the skills or scope of your current accounting – a CFO can help train your staff, and help implement new systems to streamline financial projections and reporting.
4. You need help pinpointing why your profitability isn’t increasing
All businesses go through slumps – but can you pinpoint exactly why? A seasoned CFO will be able to assess your financial situation from all relevant angles and uncover why you’re struggling – with a strategy to get you back on track.
Book a free consultation with a CFO Consultant today
Any search for an interim CFO Consultant should include multiple candidates – and we highly encourage you to bring GCG to the table.
Our CFO leadership team has extensive knowledge of the financial considerations of several industries and has provided value to early-stage startups and Fortune 500 companies alike. Our consultants and Virtual CFOs have the ability to implement all the systems and procedures you need for a solid financial future so you can concentrate on growing your business.
We have the ability to implement all the systems and procedures you need for a solid financial future and provide a cost-effective way for businesses to grow.