7 Business Challenges a Part-time Finance Director Can Help With

Without its assets, a business cannot survive. As your business grows, you will want to make sure that your finances are in the best hands. No one can be an expert in every single aspect of business, and there are some things that only years of experience can teach you, so a good CEO knows when it’s time to seek out assistance such as a Finance Director.

When starting up, you might have only had a handful of employees and a monthly meeting with an accountant. But as your business grows, things will become more complicated and it’s invaluable to have some financial experience on the Board. This article will talk about some of the financial business challenges you may face when scaling up and how a Part-time Finance Director can help.

How a Finance Director can help grow your business

If your background isn’t in finance, having a Finance Director on your Board gives you someone who has the skills and knowledge that you can trust to take care of your business’ money. One of the hardest things about scaling up can be learning when to step back. The following challenges highlight the benefits of doing just that.

1. Reviewing financial systems

Are your accounting processes ready to handle the increased demand that scaling up your business will provide? When more departments need their own budget and invoices start flooding in, keeping up with your cash flow becomes far more complex. A Finance Director can review your existing systems and advise you on what needs to change to make your business more resilient. 

2. Developing KPIs for success

Using the right KPIs is key to knowing you’re on the right track — where your business is now and what your goals are to suit different metrics to focus on. An experienced Finance Director will help them identify the right ones to suit your business objectives.

3. Planning the business’s financial strategy

With years of experience in finance, these experts would know the best strategies for you to achieve your mission and how to implement them into your business strategy. Whether you’re focused on just the next year’s growth or planning for your exit, a Finance Director will have been through it all. 

4. Monitoring finances within the business

You want to make sure that everything is working properly in the business. A Finance Director can work across all your departments so that everyone from R&D to Marketing and Sales understands what’s been working and what is the best budget for them. When budget meetings come around, your Board will be equipped with everything they need to decide where your money is best spent with, of course, the best possible returns.

5. Building better relationships

The best way to boost your capital quickly is by being given it. Whether as a debt, grant, or an investor, there’s one thing in common: they need to have faith in your business to take the risk. An experienced Finance Director adds weight to your applications just by being on your team and knows how to take your relationships even further.

6. Recognising available options

As you grow, the financial options change and you may become eligible for support without realising it. Your Finance Director will know what is available so when you gain access to a new grant or tax incentive, you don’t miss out. Many income sources will come with regulations you have to follow but having an expert on hand will make compliance easy.

7. Preparing for investment

Seeking investment is an important process, and you want to get it right. From Angels to VCs, everyone has their own preferred ranges and conditions. Some may want just equity, others a place on your board, and still others require regular updates. Your Finance Director can help you weigh up the options and find the right balance between the funding you receive and the privileges you give away.

No matter the source, investors want to see preparation in your pitch. A Finance Director can help you get all of your financial documents investor-ready

Why part-time support may be right for you

You want security in your finances, but a Full-time Executive Director is a significant financial commitment that will permanently ear-mark funds that might be put to better use elsewhere. The solution? Consider a part-time Finance Director. With all the expertise of an experienced full-time director, part-time support can give you the advice you need at a fraction of the cost.

All of these challenges can be supported with a part-time director. Whether they only come in for an initial analysis, quarterly reviews or weekly meetings, contracts can be flexible enough for you to get what your business needs within your budget. 

Are you satisfied with your understanding of your finances? Take our free Finance Diagnostic to understand your financial strategy better. Do you think a Part-time Finance Director could be what your Board needs? Contact us to speak to one of our Regional Directors about how we can support you.

 

Contact your Regional Director of Boardroom Advisors

Written by: John Courtney

John is highly ranked in the Top 100 UK Entrepreneurs list by City AM and is winner of the Lifetime Achievement Award from techSPARK. He has been a Board Director himself for over 40 years and first started placing Non-Executive Directors over 25 years ago. John founded and ran six of his own businesses including a Management Consultancy for 10 years, a Corporate Finance offering for 10 years and a mid-sized Digital Agency for another 10 years.