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Should You Consider A Virtual CFO For Your Business?


Are you looking for a solution to help you really grasp your business’ finances? Are you growing a dynamic, forward thinking company with large goals? Hiring a virtual CFO is a great start to help you navigate the unforeseen obstacles that these ambitious goals bring to a business owner.


What is a Virtual CFO? Current technology allows you to push business growth and collaboration to new levels and if we have learned anything over the past 18 months, it is that we don’t always need someone to come sit at a desk in your office. A virtual CFO will provide your business with the same benefits that you would expect from a traditional CFO - forecasting and strategic planning, analyzing financial results, cash flow management strategies, developing key performance indicators, etc. - but without the costs that accompany hiring a full-time executive level employee. A virtual CFO can work on a contractual or part-time basis based on the needs of your company.


Why do I need a Virtual CFO? The key to business success is learning to manage cash flow. Data from the U.S Bureau of Labor Statistics tells us that about 20 percent of small businesses fail within the first year, this increases to 50% by the end of the fifth year, and 70% after ten years. Why do these small businesses fail? They struggle to manage cash flow. As a business owner you need to have a strong understanding of how much money is needed to keep day-to-day operations running and you must also be in tune with what your revenue needs to look like in order to support those daily operations. Any disconnect between the collection of revenue and outgoing business expenditures can lead to a shortage of cash which makes it incredibly difficult, or impossible, to successfully operate a business. While you face many challenges as a business owner, the great news is that you don’t have to shoulder the burden alone. A virtual CFO can provide you with proactive guidance and support as your business grows by providing a high-level perspective that can guide and inform important strategic decisions, in addition to their assistance in streamlining operations.


When should I consider a Virtual CFO? While almost all small businesses will benefit from hiring a virtual CFO, it can be difficult to take that step when you’re operating on lean margins. If you’re looking for long-term financial health, wanting to grow or are already experiencing increased growth, are finding your business operations to be increasing in complexity, or just need a sounding board when it comes to financial and strategic decisions in your business, then it is probably time to consider hiring a virtual CFO. Consider the ROI of a virtual CFO, they provide your business with valuable financial insight that assists in increasing profitability at a fraction of the price of an in-house CFO. A virtual CFO will help your business grow, increase profitability, better manage cash flow, and assist in financial and strategic decisions until you reach the point where you’re ready to hire an in-house CFO. A virtual CFO can scale to fit your unique business needs at whatever stage you find yourself in.

 

Hiring a Virtual CFO could be the next step in leveling up your business. If you are a business owner that is struggling with making sense of your business’ financials, shouldering the burden of making strategic decisions on your own, and are looking for solutions to ensure you’re making the most of your business income, we’d love to hear from you. Similarly, if you’re unsure of whether your business is ready for a Virtual CFO, contact us.


Maybe you know you aren’t yet at the point where you are ready for a Virtual CFO - that is perfectly okay. We offer consultations, business coaching, and courses that can help you in whatever stage of business you find yourself in.

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