A CFO Can Provide Operational and Financial Analysis For Your Small Business

Mar 29, 2012

Sometimes, success can be scary. If you’re the CEO of a small business and you’re experiencing significant growth in terms of revenue or outside investment, of course that’s exciting. But it can also be intimidating. If you’re feeling that kind of fear, it might be time to consider a CFO who can provide some operational and financial analysis and keep your business on the right track.

In this blog post, VerticalResponse CEO and co-founder Janine Popick explains how she came to the realization that her company needed a CFO. As Popick points out, many small business founders and CEOs are great at creating and launching their product and providing customer service. However, they may struggle with financial issues such as financing strategies, budgets and dealing with investors. With a small budget, hiring a CFO can seem out of the question. But once your company starts to take off, any financial, accounting or investment problems can quickly spiral out of control. Talk about scary.

When she first launched her business, Popick hired part-time help with the accounting and bookkeeping. Later she hired a full-time accounting manager, but as the business continued to grow, Popick began to feel uneasy. The company now had 60 employees and $8.6 million in revenue. As she describes it:

We were at the point where we needed someone more experienced to not only run our accounting functions, but really look at our business model, the key drivers in our business and how we were managing those drivers. We had been using my Excel forecasts for years, which were outdated and did not capture and reflect all aspects of the business. Plus, this responsibility was just getting too big for me, especially considering the fiduciary duty I had to my shareholders. I felt I really needed someone at that level I could trust as a "partner" and fill in where I lacked in capability, as well as issues that were over the accounting manager's head.

As Popick discovered, an experienced CFO could provide the analysis, guidance and direction that her growing company needed. Although it’s important to save money and watch expenses, investing in the right financial experts can actually help you achieve both of these goals.

If the growth and success of your small business has you feeling a little nervous, contact us. Our experienced CFO partners can help your business thrive, so you can set your financial fears aside and focus on doing what you do best.

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