Small Business CFOs: Here’s why You Need One

If you took that big step and started a small business, congratulations – you’re brave and if you’re smart, you’ll soon be rich too. When starting a business, the crucial part is good organization and taking care of the most important aspect of working: finances. Besides production and a good idea, being able to manage money well is your most important task. And no, that doesn’t mean you should be an expert in finances, it just means you should be smart enough to know which people you need on your team from the early start. One of those people is the CFO or, the chief financial officer.


Hiring a chief financial officer would do you good from many aspects. Think of the CFO as the person that knows your company’s backbone, works with its essential numbers and defends everything you and your staff do in front of investors. It’s the person that represents you financially and the one that brings all the money in – in a financial manner of speaking.
Nowadays, hiring a good CFO sure is hard; the one you choose should be a real expert in the field, know how to manipulate money and people and be familiar with all the news and tricks in the area. Plus, he/she needs to be present and have a close relationship with the company. One way to look for that person is to search for online CFO offers or companies specialized in the area. Just like you’d do it for furniture or clothes, you need to be well prepared before you search online CFO listings.

Another aspect to consider is that hiring a CFO is going to cost. But, speaking from experience, it is better to invest in quality financial manager than to pay all the fees and deal with major loses because of wrong decisions or missed opportunities. So, it’s an investment worth making. And if you’re still doubting, think of this:

A CFO will build credibility with your board of investors

Investors aren’t simple people with a lot of money they don’t know how to spend; on the contrary, these are the most complicated people you’re ever going to meet. You’ll need to be so convincing in your analysis and projects and predictions on money returns that they have no space nor time to ask questions. And there will be questions that will probably sound out of this world to someone who isn’t familiarized with finance. A CFO is one of those people, he/she belongs to that ‘blood type’ so he/she will speak their language. Make your life easier.

The thing everyone worries about: ROI, or Return On Investment

When you invest in something, anything, the thing you’re most worried about getting your money back and them earn some more. Which is actually the purpose and essence of business, but not everyone knows how to do it, which is why so many businesses fail. In the core of that entire philosophy, is money management. Even though many businesses rely on other aspects like production and sales and good marketing, without your bank account being full and ready to support any move you want to make, your business will fall apart.

Refinancing is a very tough strategy

Let’s say your business idea is lucrative and very attractive and you actually succeed in convincing investors to give you their money. And once you spend them, and start working, if you can’t make a good presentation of your next move, they’ll just get all doubtful you won’t be able to get anything anymore. Trust me, when people with money to invest start doubting, you can kiss your money goodbye. A capable CFO knows how to prepare a plan, cash and headcount well, deliver good financials on time and overall keep the investors happy all the time. And you know how it’s done with investors: if they’re happy, they’ll attract new ones.


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