The Biggest Issue With Not Having a Virtual CFO
2 October 2019
Many businesses with less than $100 million in annual revenues do not have a dedicated CFO; many times business owners find themselves wearing that hat.
What’s wrong with that? – you might ask.
Surely the entrepreneur him- or herself has the most time and money invested in the business. He or she has the deepest understanding of the business, its vision, its goals, and its needs.
Nonetheless, in our opinion, a virtual CFO serves the much-needed role of a trusted business advisor.
As virtual CFOs, we have taken the time to understand your business – what you founded it to be and do, what has changed, and where you want to take it. By understanding the complexities of your business and listening to you, a vCFO can provide valuable feedback which is both informed and objective.
Your virtual CFO can help you avoid getting caught in an echo chamber of your own thoughts.
Don’t you find, in your private life, that a sympathetic ear, interested in but outside your problems, can be incredibly helpful? Sometimes it is just a matter of the new perspective you find through talking over whatever you’re facing with someone you trust.
The same principle applies in business. Business owners need someone to bounce ideas off of, and also to provide informed, objective and empirical fact-based guidance. Your virtual CFO is informed about both your business and your industry, as well as having a feel for the market in general. S/he can help you with an objective but involved, fact-driven perspective, whether the issue at hand is a hiring decision, the wisdom and timing of opening a new business segment, or a crisis to be dealt with as quickly as possible.
If you’ve been following us and our weekly emails, you already know we stress listening. Again and again. Because that is central to our belief that the client – him- or herself, his or her business – is key. For us to provide the sort of counsel and service that we are proud to offer, we must start by listening, in depth and with empathy, to what the client needs and wants in all areas of his or her business and personal life.
When we do this, we gain the ability to understand the business issues that will inevitably arise in light of the client’s needs and desires. And we become uniquely positioned to provide counsel and advice.
How often have you wished for someone who truly understands you and your business to help you with an issue?
Please click here to email me directly – I would love to hear what role you would like a virtual CFO to play in your business.
PS – Next week – Join us for a discussion on the second biggest problem we see when a business does not have a virtual CFO.