Top 9 Advantages of a Part-Time CFO

Top 9 Advantages of a Part-Time CFO

The quicker you want your company to achieve its goals, the sooner you should consider hiring a part-time CFO.

That’s because a part-time CFO will provide your company with the high-level financial expertise necessary to scale up (things you and your team may not even be aware you need), for a fraction of the cost of a full-time CFO.

Hiring a part-time CFO provides your company with many advantages that help it to grow and stand out in any marketplace. But here are the top nine advantages you and your employees and stakeholders can expect when you hire a part-time CFO.

1. Cost-saving

By hiring a part-time rather than full-time CFO, you can avoid the often-hefty recruitment and hiring costs (and the delays they inevitably entail). What’s more, you can hire a part-time CFO for a fraction of the cost of a full-time employee. You won’t have to offer a benefits package or bonuses to retain the appointee.

2. Strategic advice

Your part-time CFO will provide you with strategic analysis and support on every financial aspect of your business. A report from the Financial Executives Research Foundation (FERF) described CFOs as “critical to the success of start-up and early-stage growth companies” since they provide key insights.
It found that CFOs play key roles in not only managing a young and fast-growing company’s finances but also in setting broader strategic goals and establishing and achieving financial and non-financial milestones.

What’s more, part-time CFOs or can highlight potential threats or risks of which you and your team may be unaware or perhaps don’t know how to deal with.

3. Flexibility

You can use the services of your part-time CFO for what you need when you need it. That could be for a variety of different financial functions or a specific project. This means you and your CFO can tailor the role to suit your company’s needs at any time.

4. Multiple industry experience

Although you can choose to work with part-time CFOs who have direct experience in your given industry, you can also opt to work with those who experience across multiple industries. The advantage will be that your CFO will provide you with access to networks and multi-layered insights that you might not otherwise have.

5. Crisis management

The loss of major contracts, customers or employees can be devastating for any business. Your part-time CFO will be able to help you and your team navigate your way out of the crisis. This could include producing short-term cash flow reports, identifying costs that can be cut, producing new financial forecasts, and helping with raising vital funds.

6. Sounding board

Running a company can often be a lonely, stressful experience for CEOs, according to The CFO Centre’s Chairman, Colin Mills, in his book ‘Scaling Up How to Take Your Business to the Next Level Without Losing Control and Running Out of Cash’.[1]

He’s seen first-hand what pressure does to business owners.

“I’ve sat in sales meetings with entrepreneurs who had literally been brought to tears by stress and frustration and the feeling that it’s all too much.”

That’s where a part-time CFO can help. He or she can act as an independent sounding board for the over-burdened, stressed-out business owner. With their ‘big business’ experience, it’s more than likely that a CFO can provide solutions to what can seem like overwhelming problems to the CEOs of growing businesses.

7. Mentorship for your team

Part-time CFOs help to establish sound reporting systems and tools that help improve reporting metrics and communications to investors. They can also act as mentors to members of your existing finance team, guiding them where necessary and providing the advice they need to rise to new challenges.

8. Access to a national and international network

If you choose a part-time CFO from an organisation like The CFO Centre, you’ll benefit from the expertise of all the CFOs in its worldwide network. That’s hundreds of years of experience in every aspect of finance—all for a fraction of the cost of employing a single full-time CFO.

9. You won’t get left behind

If you’re still hesitating about whether now is the right time to hire a part-time CFO, consider the sorry tale of Kodak—a company that got left behind, despite once being one of the most powerful companies in the world.

Kodak was once known for innovation (being the creator of the Box Brownie camera, Kodachrome film and the Instamatic).[2] Here’s what’s remarkable—a Kodak engineer Steve Sasson developed the world’s first digital camera way back in the mists of time (actually, 1975). Okay, it was the size of a toaster and took 20 seconds to capture low-quality images which had to be viewed on a TV. But still… it had the potential to disrupt the market massively.

The company poured billions into developing the technology to take photos using mobile phones and other digital devices but delayed acting on it due to fears digital technology would destroy its film and photography development business. It failed to act fast enough and to identify the opportunities posed by digital technology.

On January 19, 2012, Kodak filed for bankruptcy protection 2012, then exited its legacy businesses and sold off its patents.[3] It re-emerged in 2013, albeit in a vastly slimmed-down version of its former self.

If you want to avoid becoming a post-script or salutary tale in your market, appoint a part-time CFO. They will provide you and your team with strategic help and advice to recognise threats and seize opportunities—thanks to vast experience and expertise.

The CFO Centre (and CFO Centres) offer the services of part-time CFOs with big business experience who can use what they know to help your company achieve rapid yet sustainable growth. What’s more, they’ll help remove fear, confusion, and stress from the entire process.

To discover how The CFO Centre will help your company to scale up, please call us on 1800 937 097 or contact us here.

How it works

The CFO Centre’s part-time CFOs use a proven framework known as the ‘12 Boxes’ to identify where the problems are within any business. They use it to review every aspect of your company’s finance function and identify every problem area.

They will help you to understand your company’s finances and not only eliminate cash flow problems and identify cost-savings but also improve profits.

They can also help you and your team to understand your main profit drivers, find and arrange to fund, identify your Critical Success Factors and Key Performance Indicators (KPIs), help you to expand nationally and internationally, and build value to make your business more attractive to investors or buyers. To discover more about the 12 Boxes, click here.

Need help?

To find out how a CFO Centre part-time CFO will help your business, contact us now on 1800 937 097. To book your free one-to-one call with one of our part-time CFOs, click here. You can see how they add rocket fuel to any business here.

What people are saying

People are talking about what they really think of The CFO Centre’s part-time CFOs. Find out what they’re saying in these short videos here.

Where are you going wrong?

You can identify strengths and weaknesses in your business in just four minutes with our Scale Up and Exit Business Assessment. Just answer a brief series of questions, and you’ll receive a customised page report that will reveal potential current or future pain points for your business. It will also help you to rate the performance of your finance function and uncover untapped opportunities for growth. Take your Scale Up and Exit Business Assessment now.

[1] ‘Scale Up: How to Take Your Business to the Next Level Without Losing Control and Running Out of Cash’, Mills, Colin. BrightFlame Books, 2016

[2] ‘The Moment It All Went Wrong for Kodak’, Usborne, David, The Independent, https://www.independent.co.uk, January 20, 2012

[3] ‘Kodak’s Downfall Wasn’t About Technology’, Anthony, Scott D., Harvard Business Review

https://hbr.org, July 15, 2016