I talk with a lot of business owners and most immediately dismiss a CFO. I hear it all… ”they are too expensive”… ”I am just a small business owner” … ”my business doesn’t have the need”. Honestly, all of those statements are flat out wrong.
Businesses with a well-defined and executed strategy out-earn their peers by an average of 42%. Businesses that budget and forecast meet their profit goals on average 80% more than those that don’t.
Essentially, by saying a CFO isn’t for your business, you are saying “nah, I don’t really care about my profitability that much”. For the record, I have never heard a small business owner actually say this.
So what does a CFO do the help a small business owner succeed? Good question…
Strategy
More so then ever, CFO’s are being looked at as the strategic leaders of organizations. This doesn’t mean they are the ones that derive and execute the strategy. Rather, CFOs are the ones who organize and facilitate the process. A good CFO will make sure the company has a mission, values, and is executing on measurable goals to meet that mission. Often, this process leads to more efficient and effective organizations. For business owners, this often has a positive impact on the bottom line.
Planning, Forecast, and Budgeting
Have you ever heard the Benjamin Franklin quote, “By failing to prepare you are preparing to fail”? Ya, so have I. However, when it comes to business owners, it’s the truth. Ask yourself when was the last time you truly sat down and budget out the next month, quarter, or year for business. When was the last time you forecasted what your cash balance would be in 9 weeks? If you’re like most business owners, it was when you were putting together your business plan.
If you want to make 10% more profit next year, how do you plan to make that happen? I asked that to one business owner who told me that at a Chamber of Commerce meeting. They didn’t really know the answer. I am sure as a business owner you have goals. Do you think you will accomplish them by luck or planning?
Achieve Your Goals
According to Inc. Magazine, science says only 8 percent of us achieve our goals. What is the difference between that 8 % and the rest? They build a support system around them. They set specific goals. They begin with the end in mind. A good CFO will help you and your business achieve this, it is actually in their job description.
Employees will be Happier
Most small business owners have great leadership potential but no plan to lead. This is a problem….most employees want to be led. However, when there is no plan, they are left to wonder. When employees wonder, most wonder out your door to their next employer. CFO’s help provide this purpose.
Hopefully, I have convinced you to at least consider a CFO. There are many more reasons, but the reasons on this list are what I consider the top ones. And before you start to tell me you don’t have the budget, let me answer that objection. Get a factional or part-time CFO. They often have all the expertise you need for a fraction of the budget.
About Krieger Analytics
My name is Matt Krieger, and I am the founder of Krieger Analytics, an accounting and advisory partner for small businesses and franchisors. Our goal is to completely outsource your accounting department from bookkeeping and taxes to CFO advisory services. I am also the owner and franchisor of a concept called Monkey Bizness, in Denver, Colorado.
As a small business owner with a background in finance and strategy, I realized the benefits that a CFO could bring to smaller organizations. Most franchisors and small business owners don’t have a need (or budget) for a full-time CFO or bookkeeper. To better fit my clients, Krieger Analytics is a part-time resource. While most think of CFO’s being involved in finance and accounting (we are), we are also involved in much more. We partner with clients by coaching, giving them clarity into their business, and creating growth strategies. Conversations are free, so don’t hesitate to reach out to me at [email protected].
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