If you’re like most startup founders, you are an idea person. You have what it takes to launch a new product or service, and you may have product development, marketing and sales experience.
But, you might not have much experience or even desire to take on administrative work such as finance. This is where a Chief Financial Officer comes in.
Let’s look at what a CFO for startup can do for you
A CFO can help you with forecasting and analysis. You can count on your CFO to guide you through the most effective strategies for managing your money through the initial analysis, forecast and modelling stages.
A CFO can provide the full picture of how you’re doing, where you want to go, and how you can get there.
Without a CFO, it can be hard to know whether your start up is on the right track or veering off course.
They can help you prioritize your budget and your financial outlay.
Chief financial officers are skilled at knowing just the right path to take when it comes to your money, and you can depend on your CFO to guide you into making the best financial decisions for your startup.
If you aren’t knowledgeable about financial matters, it can be hard to know how to mitigate and minimize your risk.
The CFO looks at the big picture to help you minimize any issues before they arise.
Another thing a CFO can do for your startup is create the systems you need to manage financial matters. The CFO is the infrastructure creator.
Not only can this officer take care of the day-to-day financial matters, but the CFO can look to the future. This means making sure your company is poised to grow successfully.
Having a great leadership team makes investors and venture capitalists more comfortable. You’ll find that the addition of a CFO to your startup team might help angel investors feel more at ease about giving your startup money.
Investors want to see a long-range business plan and forecasts. Your CFO can create this for you so your investors can see your positions and potential.
In addition to yourself, the CFO is the most important member of your staff. The CFO keeps investors abreast of what’s going on and provides the big picture of your finances.
To sum it up, the CFO is an integral part of your team. In fact, the CFO is your most trusted advisor and the person you look to when it comes to your startup's finances.
The CEO and the CFO are likely partners in the large task of seeing a startup succeed.
Your CFO can also help you in a few more areas as well. CFOs can:
- Raise money and handle all of the business that goes along with fundraising
- Coach CEOs on matters ranging from finance to managing a board
- Keep on top of legal matters having to do with your money and your employees
- Handle paperwork such as taxes and business plans as well as matters pertaining to your staff
- Manage all of your money, including what’s on hand as well as investments
- Take care of payroll, bills, etc.
Don’t wait too long to hire your financial guru. You want your CFO on board at the right time.
It’s a good idea to have a CFO in place from nearly the beginning to help with strategic planning for your startup.
This way the CFO can guide you while providing valuable resources such as navigation through fundraising activities and setting up your business structure.
Are you a new startup ready to succeed? Are you looking to get your new business off the ground and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your HR duties, finances, payroll and more to us. Contact Escalon today to get started.
Image: Ben Rosett