All hail the startup. Startups drive innovation, advance technology, create new opportunities, and help open up new markets. In other words, we need them! But startups are also incredibly challenging to start and to run, requiring someone with a lot of talent, a lot of confidence, and a ‘do-it-all’ mentality.
A ‘do-it-all’ mentality is important for the founder of any startup, but the best business leaders know when to ask for help. Because financial, budgeting, and tax questions are often quite complex and critical to your overall success, getting outside help for your startup finances is almost always a smart decision.
5 Reasons Why Virtual CFOs Are The Perfect Solution For Your Startup
1. Virtual CFOs Can Help Build Your Budget
Anyone running a startup will quickly discover one simple rule: you can’t succeed without a good budget. Budgets help you plan for the future, identify areas of growth, and ultimately keep your startup running smoothly.
Specifically, a CFO can help you make and track a startup budget that will help you better understand your expenses and your revenue streams, plan for the future, and prepare for any scenario.
2. Virtual CFOs Can Help You Make Better Decisions
Should you pay yourself in dividends from your startup or a salary? Do you need employees or contractors? When should you hire new staff for your startup? And is it time to incorporate your business?
You likely started your company because you’ve got a big vision, and a great product or service. That doesn’t necessarily mean you’re a financial wizard or a numbers geek. Working with a CFO can help fill in any gaps in your financial knowledge, which can have a big impact on your bottom line and overall sustainability.
3. Virtual CFOs Can Help You Identify The Right KPIs
Similarly, startup success is due in large part to measuring and improving the right Key Performance Indicators, or KPIs. In order to work, KPIs need to be in line with your short and long-term business goals. You also need to be able to track them regularly, as well as understand what they’re actually telling you. Unsure how to do this? Let a CFO use KPIs to measure (and ensure) your business success.
4. Virtual CFOs Can Help You Avoid Burnout
There’s a lot of hustle when it comes to running your own startup. And with hustle, comes burnout. We bet you like to think you can do it all, but the reality is that founders need to be proactive in organizing their team and their workflow in sustainable ways. Burnout is never a viable, long term solution.
One of the best ways to avoid burnout as a business owner? Delegate, delegate, delegate. And one of the best things to delegate? You guessed it – your finances.
5. Virtual CFOs Are The Affordable Option
So far, we’ve covered why CFOs in general are so critical to startup success. But startups are typically working on small budgets and trying to cut costs wherever possible. Hiring a full time, in-office CFO may simply not be in the books.
Enter the Virtual CFO! Finding a virtual CFO is a great option to get someone working on your finances at a fraction of the cost (but without any less commitment to your startup!).