If you are running a business chances are you have many skills required to help that business succeed. But even the most talented entrepreneur can’t possess every skill and there will come a time when it is savvy to employ some additional expertise into the business.
At every stage of a business, whether you are just starting out, expanding or even shutting down there is benefit in getting professional advice. The person or company you choose to provide this will likely have additional skills and knowledge that you don’t have which can help you see things in a different light. Sometimes it is good just to have a more independent review of a situation, and provide some impartial advice.
When you do decide that you want to bring someone else into the business for advice you should consider whether you appoint a business advisor or a virtual CFO.
Let’s look at what the differences are between the two!
A business advisors role is to work with you to improve the effectiveness and profitability of the business. They will look holistically at the business and find ways to operate the business more efficiently, increase customers through additional or improved marketing or improve customer touch points and service.
The business advisor plays an active role in developing and deploying key strategies that will help build your business and take it to the next level. The business will then need to execute these changes and recommendations. Many businesses work with a business advisor as a once off when looking to complete a transaction or they engage with them on an ongoing basis as they work key business strategies for continued growth.
A virtual CFO is like a part time version of a traditional CFO or Chief Financial Officer. Even in a part time capacity they are seen as being part of the executive team. They perform the tasks that in a larger organisation would be performed by the CFO such as overseeing the budget process, identifying and analysing current and future trends and developing strategies for the business.
A virtual CFO can help you focus on the right things when it comes to the business finances, cashflow and growth. They can prepare reports and help you focus on the right areas of your finance when it comes to decision making such as future cash flow projections rather than historical net income reports. Their services can be customised to suit your budget and requirements.
Taking your business to the next stage can be exciting, exhilarating and overwhelming all at once. But you want to mitigate risk and ensure that you are giving you and your business the best opportunity to succeed you may need to look outside of your current business and get the right support to ensure you excel.