For Businesses Facing Financial Uncertainty, CFO Leadership Can Provide A Clear Direction

As we look to the future of our post-pandemic world, businesses must diversify revenue streams, reduce risk, get financing, and retain existing customers—many of whom will have different expectations in a new-normal environment.  The tectonic shifts brought on by COVID-19 are creating opportunities for businesses to improve their operations and pivot their business models. Many companies are diligently focusing on future growth, without adding extra financial risk, and are looking to CFO leadership for the answers.

You may be asking, does my business need a strategic CFO or a trusted business advisor?  What benefit(s) will the business see? What value does it add? A Strategic CFO, whether  full-time or on an as-needed basis, acts as a key partner in your business, offering expertise beyond crunching numbers. They manage key stakeholder and lender relations and the critical financial aspects that drive business performance. If your business is seeking a financial champion to provide structure and create sustainable financial success within the business, consider these strategic initiatives powered by a CFO.

Cash Flow Management:   
Businesses that are currently struggling to retain profits—those with low cash reserves or unstable cash flows—are particularly vulnerable. However, even businesses that appear to be in good financial shape may not be immune, depending on how the situation progresses, and how long it takes for demand and supply chains to return to normal. A strategic partner can help you to understand where you are today and what you’ll need in the future. To that end, a CFO can help you forecast the year by adding 13-week cash flow forecast, updated every week. They can create strategies to improve cash flow, tighten receivables, and help uncover multiple cost-saving sources.

Reviving Revenue:
Many companies have hit a brick wall in sales. As the role of the CFO shifts from core accounting responsibilities to more strategic initiatives, one of the emerging areas of focus is helping organizations drive revenue growth. A strategic business advisor will analyze more cost-effective vendors, work on improving productivity and efficiency, and focus on ways to boost sales with existing profitable customers. They will devise strategies to increase cash flows while keeping costs down, hence improving
profitability.

Funding Business Growth:
Funding options are critical to businesses. Since many companies have experienced a swift decline in revenue, the need for an influx in cash is critical to keep operations running and employees paid. Your CFO can create financial models to explain options and risks, and even manage relationships with your key stakeholders, lenders and key partners. A strategic CFO can help you tap into government programs, Small Business Administration loans, and help you work with a lender on securing financing and capital to fund growth and important financial investments.

Revamp Your Business Model:
Now that the shock of COVID-19 is somewhat behind us, businesses and accounting teams need to emerge more resilient, not only by re-examining business continuity plans, but also by  completely re-imagining the business models and taking the plans from the boardroom to the front lines.

A strategic CFO can help you assess if your business model is meeting the current needs of your customers. They can help you devise a game plan if you need to alter any part of your business to be able to better serve customers during and in the post-pandemic era. Their expertise can help you review your pricing strategy, potential cash flow implications and future forecasts.

Forecasting Financial Projections:
Having accurate and timely financial records is vitally important for day-to-day operations. In addition, having an accurate financial forecast can be the difference between success and failure for a company. A trusted business advisor can not only make sure your financial statements and reports are current and accurate, but they can help you set Key Performance Indicators (KPIs) and goals related to finances that you use as guideposts for defining monthly or yearly targets. By doing this critical step, you can plan and predict where the company will and should be next month or 5 to 10 years from now.

By using the financial advisory services, B2B CFO® offers, you can obtain a higher quality of financial guidance from an expert whom you may not have the resources to have on staff full time. With their deep knowledge of finance and goal clarity, they can proactively work on strategic planning, business management, and financial operations, while you focus on what you enjoy most and do the best.

Navigate Business Acquisitions/ Exit Strategies:
For most business owners, selling their business is the biggest sale they will ever make, one in which they have the most risk and the least amount of experience. Additionally, many business owners see today’s crisis as a potential opportunity to acquire a competitor for less than January 2020 market value, which could help further recession-proof your business. CFO leadership can help you assess potential businesses to acquire or guide you through the critical part of devising your exist and retirement strategy. When the day comes to exit the business, transition to the next generation, or sell, you’ll already have trusted relationships in place and have taken all the right steps years in advance to position your business to receive maximum value. In an economic crisis, only the strongest businesses will survive. By having expertise, experience and a game plan in place, your business can move forward to a brighter future.

B2B CFO® works with owners to increase profitability, cash flow, company value and peace of mind. If you can benefit from strategic financial guidance for your business during today’s season of uncertainty, please schedule a complimentary discussion. Email ArtBottoms@B2BCFO.com