Onboarding an effective CFO is critical for the success and longevity of any business. But while partnering with a future focused CFO is critical to long-term growth across the board, there is one type of company that simply cannot survive without a strategic CFO: the startup.
Startups are built to scale, and often at a rapid pace. For this reason, it’s essential for startups to think quickly and strategically when it comes to onboarding a rockstar profitability partner.
Here are a few key insights about the unique role of the startup CFO.
In a startup, the CFO must be able to do much more than simply manage and oversee baseline financial operations. One of the most critical characteristics of a scalable startup is the ability to secure funding. A successful startup CFO accomplishes this through their sharp negotiation abilities, often paired with a business development skill set.
The startup CFO must be skilled at networking with, and later working with, investors and lenders, in order to get the best funding terms for the company. From there, the startup CFO must work with the executive team to strategize how this funding can be best allocated and utilized, so the business can successfully achieve its growth goals.
Analyzing the Market
In addition to securing capital, another necessary aspect to the startup CFO role is the ability to analyze the market and strategize accordingly, offering guidance and direction to the executive team on how to move in response to this information.
With a depth of understanding into both the overall startup landscape and the state of the company’s industry, the startup CFO must be able to serve as a strategic advisor in this regard. They must present potential opportunities and risks to the company in response to their market analysis, and develop an action plan to help the business continue to move towards growth and profitability goals.
Establishing a Financial Infrastructure
A startup, by nature, is a young company. Unlike a large corporation – with its pre-established financial systems, processes, and standards – the startup CFO has an additional responsibility: constructing a financial infrastructure that doesn’t presently exist.
This infrastructure must withstand the ups and downs that come with launching a startup, and support both the company’s pace and volume of intended growth. The depth of this responsibility – and its impact on the long-term success of the company – should not be understated.
Of course, the startup CFO must accomplish everything stated above while also providing the top-notch financial strategy, oversight and guidance expected of any Chief Financial Officer – whether a full-time or fractional CFO.
From providing timely data, to overseeing the entire finance and accounting team, and ultimately driving the company to new monetary heights, an effective CFO can be a gamechanger for any company looking to grow and scale.
Looking for financial support for your startup? At Blueprint CFO, we are more than accounting and finance service providers – we are your profitability partners. Contact us today!