In a report released by McKinsey, 88% of 164 CFOs surveyed reported that CEOs expect them to be more active participants in shaping the strategy of their organizations. Half of them also indicated that CEOs counted on them to challenge the company’s strategy.
Do you think a CFO is right for your business?
First let’s look at what the role of a CFO: “The chief financial officer (CFO) or chief financial and operating officer (CFOO) is a corporate officer primarily responsible for managing the financial risks of the corporation.” This means their job is to help you manage those things that you don’t have time, skill, or knowledge in. That’s their job to help work on the financial area so you can stay focus on your roles and responsibilities. CFO’s can properly managing risk and ensure businesses generate income and do not lose their capital on unwise choices.
I have learned this in my own personal life too. When talking with my financial mentors the one word that keeps coming up, plus what I hear them say, is that I need to … “Diversify.” This is the standard investing guideline for risk management when it comes to my finances.
Diversification attempts to spread risk among several investments in various economic markets.
Now look at that again. When you want to avoid financial risk you diversify, and as a small business owner you need to do the same.
So what does a CFO and growth have in common?
First you need to invest your time in running your business, and let a CFO spend their time investing in managing the risk that comes with your businesses finances. All investments involve some type of risk, but certain investments are less risky than others. You can’t do it all yourself, you need to learn to delegate, and release the area’s that are not your strengths, to someone who has finances as theirs. This creates a win-win!
If you’re looking to grow this year, than the one area that you need to grow is the office of the CFO. You need to find, hire, and risk this role in your business if you want to grow.