So often-too often-I appreciate its own position of CFO as misunderstood or undervalued in smaller companies. In such companies, there needs to be a paradigm shift as the company proliferates. Early-stage companies need to understand how a CFO can positively affect the company’s swelling from every angle.
CFOs can help lead the charge when it comes to growing your corporation. Because your business approaches are deeply woven in with your business approaches, you need CFO support for any and all of your growing initiatives: from the planning stages through to execution.
When your CFO is deeply involved at a holistic strategic level-not just a superficial money management level-here’s what he can do.
1. Identify strongs and your competitive edge. Your CFO has deep insight into your company’s fortitudes. Where are you making money? Where is your biggest ROI? With this knowledge, your CFO can help you to leverage these persuasiveness. Also recognizing your competitive advantage is key to successful growth. You want to pursue openings that will positively impact on your corporation , not detract from where your company is already successful.
2. Target flaws. The flip-side, of course, is that your CFO envisions your inadequacies. Sometimes it takes an objective eye to target those commodities that just aren’t rendering, or other business initiatives that are losing you money. Figures don’t lie; they render an objective read on the financial health of your busines. With the assistance of your CFO, you can see where you need to invest in particular areas to give them the financial resources they need to thrive-or where you need to cut your losings and pivot.
3. Understand market opportunity. Your CFO can help you to understand the competitive marketplace. Where are their market opportunities? How can you better leverage these opportunities?
4. Create a portfolio of swelling initiatives. Your growth strategy needs to be multi-faceted with numerous strategies. Your CFO will help you to achieve the goal of optimizing for the entire portfolio.
5. Think long-term. While you may be allured by short-term growth initiatives, these are not always the best choice for your fellowship. You need to think more long-term to see if these short-term possibilities will wind up costing you somewhere down the road. Financial projections are a useful tool for mold your long-term strategy.
6. Identify strategic partnerships. What business partners can further your expansion? Whether it’s a supplier that can give you a better deal on raw material or a competitor with whom you may be able to merge for greater market penetration, your CFO is skilled in finding the leading player with whom you can form relations to accelerate your velocity.
7. Assess management effectiveness. Your CFO plays an integral role in evaluating your conduct crew, quantifying their effectiveness, and assessing whether your team is well-positioned to execute on your growth strategy.
8. Maintain customer focus. You want to grow your company, but not at the cost of your existing clients. Your CFO will assist in ensuring that you stay committed to your existing client base even as you increasingly propagandize to acquire brand-new purchasers. If you can’t keep up the quality of your provides and of your customer services while proliferating, then you’re not ready to grow.
9. Determine impact of growth initiatives on current employees. How will their roles alter? How will procedures modify? Do they have the bandwidth to take on more responsibility? Do they have the skill-set to take on more?
( My special thanks to Mr. Sagar Mohanty for providing assistance)0