Do you really need an Outsourced CFO to scale your startup? The answer is yes.
You put everything into this venture. You’ve figured a lot out along the way, and all that hard work paid off. Now it’s time to scale, and scaling’s complicated.
You have a lot to lose but — if you do this right — so much more to gain. You’ve made it this far, now it’s time to take it a step further, but you need help to get the job done and done correctly.
You need someone who’s experienced in helping companies like yours scale and grow.
But you’re not yet capable of hiring a full-time CFO. How would you pay them? What job security could you offer during this transitional time?
There’s a little-known secret in the startup world, and it’s catching on. An outsourced CFO is a perfect option in your situation.
Challenges to Scaling
It’s easy to get caught up in the idea of scaling and do it too quickly without being prepared. This can lead to setbacks and prematurely using the resources you needed to grow and expand.
There are a lot of different paths to scaling but one mistake can take you off course.
Scaling is a massive project. It requires strong financial insight, something you may not be well-versed at.
Scaling also requires securing the proper funding. This isn’t an easy task without a clear strategy in place.
As you begin to scale, you may also fall victim to some of these common pitfalls:
- Over-focusing on marketing and sales without building long-term demand
- Pricing your product or services incorrectly
- Failing to change your management structure as you grow
- Ignoring small issues, thinking they’ll pass
- Not streamlining as you grow. You’ll find line items, initiatives, and sometimes even people who aren’t going to work with your new larger company.
Each of these challenges can create a recipe for disaster, however, this is where an outsourced CFO will come in handy. They’ll help you evaluate the financial side of your startup, so you can make the right calls for your business.
Outsourced CFOs Know What it Takes to Scale
Outsourced CFOs are experienced and know how to deal with challenges founders often face when scaling. Below are just a few areas where an outsourced CFO can improve your startup:
Outsourced CFOs Build Relationships with Investors
CFOs know what investors are looking for. They can set your business up to financially and organizationally appeal to them. This is essential for securing funding.
CFOs are also well-versed in communicating with investors on progress and the financial state of your startup.
Good relationships with investors can be the difference between a successful scale and a failed business. Outsourced CFOs manage those relationships and maintain them to support your growth goals.
Outsourced CFOs are Skilled at Tracking
Outsourced CFOs know the best KPIs to track to both understand where your company stands now, and determine where it’s trending.
With the help of tracking the right KPIs, they will compile reports that give updates on financial progress and insight into what areas could be improved.
It’ll be a team effort as they collect and compile all of the information to then help you understand what it means for your business so you can make better decisions.
Outsourced CFOs Look Ahead
Like a great chess player, they can see moves ahead to help you position your company for success. Outsourced CFOs are skilled at using forecasting and cash planning to look ahead.
They gather both quantitative and qualitative data to see the big picture. Some important forecasting models include:
- Sales
- Expense
- Top-down – Evaluating the larger market down to what you sell
- Bottom-up – Evaluating your product and working outward to how it fits in the market
When scaling, projections and forecasts are essential tools. You need to know where you’re headed and how you are going to get there. They also ensure accuracy and take into account potential internal and external challenges that may affect your progress.
Outsourced CFOs Serve as Financial Advisors
Get financial advice and aid in the decision-making process with accurate and data-backed information from someone who will quickly become one of your most trusted advisors.
Outsourced CFOs are an extension of your team, so they’re working to help you meet your business goals. They answer your questions and become a reliable and trusted source of information. No more searching through Google for financial advice that doesn’t really apply to you. These professionals know your unique business situation and can give you the personalized answers you need.
Are You Ready to Scale with the Help of an Outsourced CFO?
Scaling is complex and you have a lot to lose.
During this critical stage, missteps are common. They can really set you back. Outsourced CFOs live for this kind of pressure. They’ve been here before and know how to help you make financially-sound decisions.
Pasquesi Partners has the outsourced CFO services you need. They work specifically with founders looking to scale their businesses and have the experience and answers you are looking for to scale confidently.
Talk to an expert at Pasquesi Partners and get your complimentary 20-minute discovery call.