- Cost Effectiveness. Qualified, experienced, small-organization CFOs command
$100,000 to $200,000/year plus benefits in the market. A part-time
CFO can often be hired for less total cost and may still offer the
greater proportion of value.
- Buy just what you need. Use the outsourced or part-time CFO who is
demonstrably capable of handling your specific current needs for
either a project or a specified period of time and keep your
options open for the future.
- Avoid making the "first-time CFO
mistake". Learn how the
relationship between you and your CFO can work without taking the
unnecessary risk of making a long-term commitment. The outsourced
CFO relationship can easily be ended when appropriate without
severance costs or the risk of a wrongful termination suit.
- Avoid missed opportunities and
value. If you wait to be able to justify a full-time CFO, you will
have missed value in the meantime. This could result in 1) less
effective financing negotiations due to credibility problems with
lenders or investors, 2) limits on profitable growth due to lack
of financial and operational controls, 3) undervaluation of your
firm in the future due to inadequate financial planning today.