Given the energy it takes to run a growing business and the amount of work that the typical owner-manager has on their plate on any given day, it is hardly surprising that the phrase ‘successful but stuck’ is frequently applied to SMEs. These are the businesses that are doing well – very well in most cases – but can’t seem to find a way to step up their growth to the next level.
What’s missing is the big strategic plan. This could be an acquisition, allowing the business to enter new markets, add key skills or fill an important technology gap; or perhaps operational or digital transformation.
This is where a CFO will often prove their worth.
CFO’s strategic scope
The CFO’s role is not just to make sure that the business is healthy and solvent and meets its reporting deadlines, but to analyse financial data and how it tells the story of the business:
- Where is growth coming from?
- Where could costs be saved?
- Could we explore other markets at home or overseas without overstretching ourselves?
- What’s missing from our repertoire?
An experienced CFO drives forward business strategy, working out the implications of the status quo against the opportunities that change could bring.
An SME may lose out on this expert input and support because it doesn’t have the immediate need or budget for a full-time CFO. But there is a way for you to draw on the skills of a seasoned professional at a fraction of the cost: through an outsourced service such as BKL’s. Using an outsourced CFO service, also known as a fractional CFO service, gives your growing business access to experienced finance professionals with a record of supporting businesses through strategic change.
A fractional CFO will work alongside you to make sure that the business you own reaches its full potential. They offer strategic advice, exploring possibilities that you may not have had time to consider, as well as the expertise and experience to manage transformation.
Fractional CFO in action: an example
Sometimes the best way to grow is through acquisition. For you as the business owner, this may be an intimidating prospect.
A fractional CFO can guide the process from beginning to end and manage any specialised requirements. This would include:
- Highlighting opportunities where an acquisition could benefit your business, for example to connect it with new markets, skills or tech
- Identifying potential targets
- Gathering the financial information required and coordinating advisers and the due diligence process
- Assessing the financials of the target company
- Advising on the best way to structure finance for the deal
- Talking to investors
- Representing the business in negotiations and meetings
- Pinpointing opportunities for efficiencies and cost savings in the newly-merged business
Growing a business through transformation takes specialist skills and experience, which can be difficult for smaller businesses to access. But that shouldn’t put you at a disadvantage.
A fractional CFO puts a growing owner-managed business on an equal footing with larger competitors, providing access to strategic advice and support. This enables you to get on with running your business, confident of a promising future.
Get in touch today for a chat about our fractional CFO service and how it can help your business grow.