Why Every Startup Needs a Capable CFO
We often get bogged down by the technical side of creating a new app or service. When opening a new company or a startup, product development is usually the most exciting process. The stages are even more thrilling if you love the details of the process, including writing your own codes and tweaking the UX/UI.
Still, there is more to creating a new startup than getting completely involved in product development. You also have to think about the business side of the company. Every good startup needs a good Chief Financial Officer or CFO and there are some interesting reasons why the most successful startups today are the ones that acquired their CFOs early.
It’s Not a Debate
I know how a lot of young founders and new startups are stuck in a debate on whether to hire a full-time CFO. After all, the company is young; there is no need for advanced financial strategies, right? Well, it is really not a debate.
When you have a capable CFO in your team, you can benefit from the CFOs experience, strategic perspective, and deeper understanding of how the business needs to be structured. A good CFO can also guide you through the process of allocating resources and optimizing the available capital.
On top of that, CFOs have the network you need to expand. The next time you need a round of funding, you can rely on your capable CFO to handle everything about the fundraising perfectly. These benefits far outweigh the cost of hiring a full-time CFO.
Someone Has to Do It
A lot of startup founders, even those with a technical background, are also going back to school and pursuing their online MBA with finance concentration because they realize the importance of managing the startup from a business standpoint.
A product is only as good as the company behind it, and for the product to succeed, the company needs to succeed. A startup that makes one bad business decision after another will not be able to reach its full growth potential.
Yes, you can choose to go down this route and study to become a CFO yourself. You’ll be surprised by how online MBA programs from reputable universities like Suffolk University are in line with today’s landscape of startups and VCs.
You Need a Plan
A good financial plan is a key ingredient in creating a new startup. Without it, you are more prone to making mistakes and bad decisions. There are too many stories about startups blowing through their Series-A and Series-B funds without achieving anything. The one thing you can learn from these horror stories is the importance of a good financial plan.
With a CFO on board, you can avoid making the same mistakes; you will not prioritize a fancy office over recruiting better team members, no matter how tempting the new office appears to be. With every wise financial decision made, you are a step closer to becoming the next unicorn.
So, does your startup needs a CFO? The answer is a big YES. Work with a capable CFO and start inching closer to the success you have always wanted as a startup founder.