Do you need a finance director for your business?

DO YOU NEED A FINANCE DIRECTOR FOR YOUR BUSINESS?

December 5, 2023

THE PROBLEM

When business owners or entrepreneurs start in business, what they have in mind are the following opportunities:

Freedom: to work when, how and where

Control: opportunity to do the things that make them happy and spend time with loved ones

Money: to enable them to do the above without worrying!

But now that they are running their business, the reality is far from the dream!

Their regular day-to-day activity is far from the freedom or the high-level input that they know they should be spending their time on

Instead, the business owner is spending time on…

  • Fighting fires
  • Recruiting and managing staff
  • Dealing with customer complaints
  • Managing cash flow
  • Trying to make sense of the finances
  • Trying to win new business

Remember… Profitability is key to any business’s success. Cash is key to every business’s survival AND ‘Profit’ and ‘Cash’ are NOT the same thing!

THE SOLUTION

When a business gets to a certain size and complexity, the role of an experienced finance director is critical in ensuring the financial sustainability, resilience and future growth of that business. This will introduce additional costs for that business, however, it’s this role that is exactly what these growing businesses need the MOST!

The two options are therefore either for the business owner to:

Recruit their own ‘in house’ Finance Director e.g. with annual salary costs of £80,000 to £120,000 on average, BEFORE any other bonuses, benefits, pensions etc are included

  • Are they immediately available?
  • Do they have the ‘right’ experience for your business
  • Able to work effectively with YOU?

Consider a Virtual (or Part time) Finance director who may offer the same support to the business owner(s)e.g. with costs on average from £2,000 to £10,000 per month based on need/requirements

  • Are likely to be more immediately available
  • Are more affordable, especially in the short-term
  • More ‘risk-free’ due to the ability to make a quick, painless change if it is NOT working

SO WHAT ARE THE KEY SIGNS THAT INDICATE THAT YOUR BUSINESS NEEDS A FINANCE DIRECTOR?

  1. This business is profitable, so WHY do I always seem to struggle for CASH?
  2. The business is profitable, so WHY am I still not able to pay myself(ENOUGH)?
  3. I don’t know if my business is ACTUALLY PROFITABLE!
  4. I don’t know if different business activities(or projects)are PROFITABLE.
  5. AM I making ENOUGH Profit in my business?
  6. I DON’T have any cash to one side to pay VAT/Corporation tax etc AND it is coming up for payment!
  7. I am NOT sure how to start to IMPROVE my cashflow.
  8. Why am I not in more control/NOT KNOW what is happening?
  9. Why Am I (Still) working SO HARD/DOING EVERYTHING?
  10. How do I get to the point of BEING ABLE to take the kids to school, work away for a few months each year etc??
  11. How do I know how or when I can take money out of the business?
  12. I am NOT sure HOW I keep growing my business.
  13. I WANT to grow the business nationally/internationally but NEED HELP!
  14. CAN I SELL the business in the future?
  15. WHAT DO I need to do to ensure that I can SELL my business in the future?

So… do you need a Virtual Finance Director? Read our Virtual Finance Director Services and get in touch!