What is the right time to hire a CFO?
How much is it going to cost?
What will you help me with?
Startups are built top down by their founding teams, and founding teams typically focus on technology, product development and sales, not on finance.
As the startup grows, management team positions are selectively hired and because money is important, front office (for instance customer success) always takes precedence in front of backoffice (for instance finance or HR).
When the startup really kills it, and financial decisions become more strategic, maybe when more sophisticated investors appear, or when it is the time to sell the company, only then does the cost of a CFO pay off.
WHAT YOUR CFO WILL DO FOR THE COMPANY
THAT YOUR ACCOUNTANT WILL NOT
Perform strategic planning, so that at each growth stage you see the effects of strategy being deployed, track the performance of each strategic objective, determine the cash needs and maximize the value of your company.
Set up a budget and forecasting function, and compare forecast results with the actual results, to tell you where you could be doing better, how and why.
Create a KPI dashboard and a reporting package with the metrics that really matter to your business, and follow up with them with you and your management team. Become a metrics-driven company.
Bring the relationship with your investors – actual and potential – to the next level … same thing at your management team level.
Track your most precious resource, cash, with rigor and optimize its usage. Find alternative funding sources.
Establish a sound and cost-effective financial operation.
As you can see, you can reap the benefits of all of this at a very early stage, not only once you are mature and successful. The cost of professionalizing the finance function only when it is too late (in a crisis scenario or when you are about to start a key funding round) is always too high.
Yes, but this is going to be very expensive
By hiring an interim or part-time CFO, you first of all save on costs related to permanent employees such as social security, benefits, stock options. And obviously, there are no termination (severance) costs.
You can adapt our dedication to what your company really needs, be it two days per month or three days per week. CFO as a service!
Good startup CFOs are hard to find and expensive, so companies typically cut corners by hiring junior or unexperienced CFOs. We are plug and play. We only take up assignments that we can do, and where we start adding value from day 1, as we have done many times what you want us to do — be it help fundraising, create a good reporting environment or do a financial model of your company’s business.
The decision to hire us will be easy: we will tell you exactly what to expect for our cost.
Our services are highly packaged. No surprises!