Why you must speculate in order to accumulate

 

First coined in the mid-20th century, the term “speculate to accumulate” refers to the need to invest (with some degree of risk) in order to make meaningful gains.

This concept is particularly poignant now, especially when businesses are juggling multiple operational demands. While managing costs to save cash for expansion or preserve the business, CEOs might overlook the importance of investing in key areas.

 

Healthy business growth relies on strong financials

Cutting costs in the wrong areas can hinder business growth. Therefore, even when you’re aiming to grow your business, you must continue to invest wisely.

When looking to speculate to accumulate, the key is in looking for costs that will actually add value as opposed to be a non-contributing cost to overheads.

This is where investing in a part-time CFO can help by investing in a cost that offers a great return.

 

Why Investing in a CFO Drives Profit and Cash Flow

Many businesses see the employment of a CFO as a cost to their business rather than viewing the glass as half full and asking, ‘how a CFO could increase revenue in my business while also reducing my fixed costs and increase cashflow?’

We see time and time again that for a small weekly investment the business could be more profitable and create more cash.

With business owners so caught up in the day-to-day revenue and operational challenges of their business there is little time to look at the key “1 per centers” that can make all the difference to your business.

What would the following actions do to your business?

• an additional 1%-5% saving on your GP
• adding an additional 5–10-day cash flow through better collections or extension of trading terms
• having better banking facilities
• understanding your fixed costs, especially labour

 

Invest in the right resources

Experienced CFO’s have the toolkit to help your business, many are former business owners or have grown SME’s with founders. They are here to help.

The larger question is can you afford not to invest in a CFO in today’s challenging economic environment?

 

Grow your business with a fractional CFO

At The CFO Centre, our CFOs become a profit-generating resource rather than a cost. We help businesses improve their profit and value by:

 

• Developing and Implementing Strategic Financial Plans: Strategic planning provides clarity and confidence. Our CFOs can add real value in this space, as we have extensive experience with strategic planning across many industries. They can help steer this process, ensuring financial goals align with broader business strategies.

 

• Financial Oversight & Risk Management: By examining financial data, we make informed decisions that significantly impact the company’s bottom line and growth potential.

 

• Act as trusted advisors the CEO and Management Team: helping CEOs make the right decisions around businesses and people.

 

• Opportunity Identification: we can identify emerging trends, backed by data, to help you innovate and diversify.

 

• Strategic Acquisitions: CFOs play a key role in identifying and evaluating strategic acquisition opportunities, including financial due diligence.

 

• Building and Managing a High-Performing Finance Team: We help build and manage a team of skilled finance professionals, including accountants and bookkeepers, to ensure financial operations run smoothly.

 

For further reading, take a look at our Top 7 Advantages of a Part Time CFO

 

Let The CFO Centre help your business grow strong – hire a superstar part-time CFO

 

Engaging a fractional CFO can provide valuable insights into your business’s financial health, helping you make informed decisions and identify areas for profitable investment. This strategic support can drive your business towards sustainable growth.

 

Contact Us To Find Out More About Our Part Time CFO Services

 

 

*With thanks to Craig Gemmill, Regional Director (VIC) and Mark Whitaker, CFO (VIC) for their insights into this area of business management.