How Nancy Got Her Small Business Moving Again
Benefits of Outsourcing the CFO Function
- Cost Effectiveness. Qualified, experienced,
small-company CFOs command $75,000 to $150,000/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 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 part-time CFO relationship can easily be ended when
appropriate without severance costs or the risk of a wrongful termination
- 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.
|© 2002, MIT Management Associates
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