start up coo

Managing a startup is a lot of work, and most startups run on thin margins with large workloads. Most small business owners want to avoid hiring additional staff to manage their finances. But what if it increased your odds of success?

According to recent research, only 2 in 5 startups are profitable, and 1-3 will either break even or continue to lose money. It does not take an accountant to know those are not great odds. Any way you look at it, money is the lifeblood of the industry and managing it well and running within your margins is critical to your business’s success.

Benefits Of Hiring A CFO

Nexagy provides a creative solution to startups; we offer part-time CFOs. For example, a Chief Financial Officer can provide various solutions for a budget-conscious startup. A CFO is responsible for managing and monitoring a company’s financial performance. The duties tend to vary depending on the industry and company, but they are the key person responsible for understanding the business and its economic strategy.

The one thing most startups have in common is a limited budget. As a business grows, so do its resources. That is why it is critical to manage the initial funds well to give startups the longest runway possible to achieve profitability. A part-time CFO can save you the cost of an additional full-time employee. Despite working part-time, they will still have the same goals as full-time CFO. They can create income statements, balance sheets, and critical decision-making tools.

Having a trained, experienced CFO to manage your bookkeeping, help you with your accounting and even advise you on your tax strategy. A CFO can ensure that your money is well spent. It also frees the key executives to work within their wheelhouses to ensure the startup’s success.

A common mistake many new business owners make is wearing too many hats and trying to play every role in keeping things moving forward, but guessing at things like accounting or tax strategy can be detrimental to your company’s success and lead to costly errors.

Employing a CFO means you can have an accurate picture of your company’s finances at any moment in time and over time. This alone can help you make better decisions, set vital strategy points, work toward financial goals, reduce waste, and measure your progress. You can read more about what to look for in a CFO here.

Another benefit is knowing your money is well spent. When you work with your CFO to set productivity and profitability goals, it is easy to see if you’re staying on track or not. Keeping accurate financial records and knowing how your money is spent can reduce waste and keep you from spending too much on things that do not move the needle toward your ultimate goals.

Where Can I Go To Find Help?

When you work with Nexagy, it is not our goal to come in and take over. We love to partner with businesses. When you work with us, you’ll see our approach is simple. We will invest the time it takes to understand your industry, how your business works and how your team functions. We will provide you with strategic analysis and help you organize a refinement process. We will even stay on board through the execution stage to make sure the changes are carried out and benefit your company. If you have questions about hiring a part-time CFO, contact us today us today to learn more about our team, our process, and how we can help your business grow.

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