Every startup out there has one thing in common: they all want to grow. But while growth is the goal, it also comes with its own challenges, such as when and how to bring in new talent. Strategic hiring is critical in every business, but especially those with budget restraints.
A CFO can help with strategic hiring for startups by offering data-driven advice around when to hire, as well as around what to offer new hires. This can include guidance on wages, benefits, and other perks. Ultimately, CFOs can provide financial leadership to help startups make better informed decisions around all areas of growth, including hiring.
CFOs & When To Hire
Like we said, startups are eager to grow. They want to move out of the startup phase as quickly as possible, and this typically requires more people.
But given that payroll and associated expenses are typically a company’s biggest expense, knowing when to actually hire is a delicate balance. Just because it might be helpful to have a few extra hands around, that doesn’t mean you can afford to pay them.
Presumably, your CFO will help you build a budget for your startup. This budget will be a jumping off point they can use to help determine when is the right time to hire new staff. Alternatively, they can help your startup determine whether it makes more sense to hire new employees or contractors right now, which is insight that can prove invaluable.
CFOs & How To Hire
Maybe you’ve made the decision to hire … but now what? What can you afford to offer in terms of salary and benefits? What can you afford not to offer? As we all now know, we’re in the middle of the Great Resignation, and it is absolutely an employee’s market. The only way to attract and keep top talent is to offer the most competitive compensation you can afford.
And the best way to figure out what compensation you can afford? You guessed it – a CFO. The right CFO can help you determine the right salaries, raises, bonuses, health care plans, and other benefits for all your employees.
The Right CFO For Your Startup
We get it. Money is often tight for young companies. You might be at a stage where you’re unsure about even hiring a CFO, let alone hiring anyone else.
Remember that a CFO can do more than help with your strategic hiring. They can also assist with fundraising, help you transition to cloud-based accounting, figure out whether to pay yourself in dividends or salary, and determine if or when to incorporate your startup.
In other words, CFOs are essential to helping your startup grow, which includes guidance on strategic hiring.
If you’re still unsure about your needs, see our guide to when startups should and should not hire a CFO here.
As a Virtual CFO, we work with companies of all shapes and sizes, but we have a passion for startups, especially tech-based startups. We’re a startup ourselves, so we have special insight into how to help you stay in control of your finances, improve your cashflow, and keep investors happy.