When is the right time to hire a CFO for business growth?

As your business grows and evolves, you will need help with your finances, help beyond what a bookkeeper or controller can provide. You will need the support of a Chief Financial Officer (CFO) who can provide an in-depth understanding of your company’s financial health and a holistic view of changes you can make to increase profitability.

Let’s take a closer look at why you should consider bringing on a CFO now and how you can afford it.

Is your business growing with new business and high customer retention?

On the surface, this is a good thing, but you could be losing money. A CFO can determine the fixed and variable costs of each new customer and existing customer and what you need to charge to make money on the work you’re doing.

Has your company changed over the past few years?

If your company has grown and changed, you may have – or may be considering – adding debt via a bank loan, a line of credit, or adding equity from an investor. Debt or equity structures require more complex and frequent financial reporting. A CFO knows all the data flow into and out of a company and understands banks and investors’ reporting requirements.

When you take money from an equity partner, a CFO can ensure that your ownership in the business is protected and that your role going forward is appropriately defined.

Are you considering a strategic alliance or acquisition?

Strategic alliance and acquisition transactions are risky. A CFO is vital in this process. A good one understands all the steps along the way and will make sure that things go according to plan and that you don’t overpay.

Are you thinking about expanding into new markets?

Expanding into new markets can accelerate sales and result in more complex operating procedures, including tariffs, increased shipping costs, and varying country regulations. A CFO can help you navigate this process to make sure the expansion truly enhances profitability.

Are you ready to take your business to the next level?

You may be thinking about expanding your product line or services or hiring additional employees. A CFO can be your strategic partner to help your company grow because they are skilled at evaluating business models for strength and profitability. A CFO is an excellent partner when contemplating a dramatic shift in your company.

How can you afford to bring on CFO?

You don’t need to hire a CFO full-time. You can hire a CFO on a part-time or consulting basis to work as your strategic partner and get your company on track.

Do one thing: Answer the questions above and based on your answers, determine if a CFO can help you grow your business.