It’s a good question, and one that every business owner, operator and CEO asks at some point. Where do you want to take your business? How do you want to grow over the next three, five and 10 years — and beyond?
Going hand-in-hand with those questions are questions of financing. Businesses can’t expand without adequate financial resources, allocated for maximum effect.
That’s where your CFO comes in. Working together with your CFO, you can develop a detailed financial plan for your business that can help you determine the cash you will need to execute your plan and the cash you will generate as you are successful.
In particular, your CFO can help you determine:
- When and where to add overhead costs. If growth is in your plans, a financial plan can help you determine which overhead to add, which new hires to make and how to balance the cost with the benefit.
- New markets to explore. Should you roll out a new product quickly or gradually? What about geographical expansion? With the assistance of your CFO, you can formulate concrete answers for those questions.
- How to handle marketing and development costs. Not every business needs a lot of marketing or has a research and development wing, but if you do, these areas can hard to measure. Your CFO can help you determine how much money should be allocated to both marketing and R&D.
If you are interested in the services of FocusCFO, please contact us.
Previous article in this series: How to Take Your Business From Break-even to Profitable
Latest posts by Jeff Lacy (see all)
- Know the Market for Your Small Business - April 17, 2017
- Buy-Sell Agreements: The Prenuptials for Business Partners - March 22, 2017
- Estate and Tax Planning - February 20, 2017