Confidence. The word itself elicits strength and trustworthiness. It’s a mandatory trait for any individual who is striving to grow and succeed on either a personal or professional level. It is also equally important for a manufacturing company who is striving to grow and succeed in a highly competitive industry. There are a number of aspects of your business in which you can feel confident—your product, the talent of your employees, and your safety procedures, to name a few—but most important to your company’s growth and success is financial confidence.
For small and mid-sized manufacturers (SMMs) who aren’t actively seeking growth, a bookkeeper or Office Manager can sometimes be all they need to keep their finances running smoothly. But for those SMMs who seek growth so they can continue to compete, they must be able to rely on accurate and timely financial information, good working capital management, and a solid relationship with a banking institution in addition to simply “keeping the books”. From both a cash and bottom-line perspective, they should know where they are and where they are headed at any given moment.
You may know exactly where you want your company to be two, five or ten years down the road, but can you claim the financial confidence to get you there? Without it, you might have to rely more on luck to make it happen and, unless you’re a leprechaun, luck has never been a sound business strategy. It may be time to start thinking of adding a full- or part-time CFO to your staff, or to partner with an external financial advisory firm.
Whichever route you take, the services of an experienced, knowledgeable CFO are invaluable to the planning and execution of your company’s strategies, which will impact your company’s performance over both the short- and long-term. Your CFO is more than just a person who looks after the numbers. He or she is a partner, providing essential high-level financial insight and direction that will help shape the future direction of your company, regardless of your industry, your business model or the markets you serve.
A CFO can help:
- Ensure that high-level business decisions are grounded in sound financial reasoning
- Increase the financial understanding of other members of the leadership team
- Analyze data in key financial metrics to ensure profits are maximized, both categorically and overall
- Project future financial needs across a range of potential scenarios
- Maximize the efficiency of personnel and processes
- Compile and present monthly, quarterly and annual financial performance reports that are comprehensive and easy to reference
- Identify best financial practices, and ensure those standards are enforced moving forward
- Identify potential problems, such as financial shortfalls, well in advance, and help craft solutions that can address the issue before it becomes a major crisis
PolymerOhio Manufacturing Solutions partners with FocusCFO, a company that can help you with your financial confidence so you can move your business forward. For more information, call us at (614) 776-5265 or fill out this contact form.
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