When is the right time to engage a virtual CFO for my business?

January 9, 2023 | EXPANSION

Picking the right time to engage a virtual CFO can be tricky, but we find there are a few key signs that a business is ready for additional support.

For a founder those signs are:

You’re growing but you still never seem to have enough cash

Fast growth can be one of the trickiest times to manage as your business scales up as often the cash goes out the door before the revenue comes in. Having a clear handle on your cash flow forecast and knowing what levers you can pull if the projected revenue doesn’t eventuate as expected is really critical to long-term sustainability. In order to grow successfully you need to have guardrails.

You’re spending precious time in spreadsheets when you know you should be running the business

In the early days of a business, the founder is often wearing the CFO hat. The transactional work is outsourced but having a handle on the financial projections, budgeting, and assessing funding requirements sits with the CEO.  As the business grows it isn’t the best use of founder time.

Your financial system isn’t giving you all the answers you need. You know there are more

Having the transactional data correct is an essential first step.  But to really grow the business you need to extract the insights from that information. What is that data telling you about the health of the business and where to go next?

Your business is branching out into more unknown or bigger territory

As your business grows there will likely be more unknown territory.  Whether it’s venturing out into new business streams, new customer types, or new geographies. A CFO steps in to help you assess these scenarios and provide commercial and strategic guidance in decision-making.

You’re planning on selling your business 

Most founders we work with haven’t sold a business before. And preparing a business for sale takes time and careful planning.

If these thoughts are keeping you up at night let’s chat.