03/ 29/ 2005
by Shannon Brouillette and Leigh Ann Horton, partners of CFO Strategic Partners
Our April/May MyBUSINESS Manual explored outsourcing: How do you know when to stop trying to do it all yourself? Delegating is a challenge for many small-business owners. But at some point, it makes sense to hand over work that could be done by someone else (or some other company) so that you can concentrate on the core of your small business. This Web Extra exclusive discusses whether outsourcing your CFO makes sense.
For many small- to mid-size business owners, finding the right time to introduce a chief financial officer into a company is a timely and often difficult business development decision.
Thriving companies are often built on the principles of hard work and dedication, and it’s no secret that a cohesive and productive staff often leads to success in business goals. But when profits continue to soar and success ensues, how long can a company leave an executive seat open in the boardroom? Most owners would be inclined to hire an in-house CFO, yet for a small to mid-size company the costly price tag for a top tier professional may not be the best solution. So what are the options for a soaring small to mid-size company? The answer may be outsourcing.
Outsourcing a CFO is a growing trend in the financial industry, and one that most companies should be familiar with and consider when making strategic business decisions. Partners Shannon Brouillette and Leigh Ann Horton of Orlando-based CFO Strategic Partners believe that small to mid-size companies should consider outsourcing a CFO, for the following five reasons:
Collaborative Knowledge — CFO consulting firms offer clients a diverse network of experienced and dynamic financial minds to empower a company with the collective knowledge and expertise of an entire team. A pooled resource base is an extremely powerful tool.
Cost-Effective — Hiring a CFO from a consulting firm saves the company the costly overhead of adding a new executive member to the team and offers no additional obligations for a pricey benefits package.
Growth — A top tier CFO brings a high-level visionary approach to businesses that, because of their size, would typically not be able to afford that proactive level of CFO thinking. This advantageous approach allows a company to achieve unparalleled success and growth.
Flexibility — A CFO consultant will work around a company’s schedule based on their particular corporate needs and objectives. Once again reflecting the cost-effectiveness of outsourcing, the flexibility of a CFO’s schedule allows a company to maximize their effectiveness and plan accordingly.
Funding and Banking — Consulting firms offer extensive knowledge and expertise in the banking industry and can offer a company a tailored funding plan to help a client position themselves for growth.
BOTTOM LINE: Outsourcing your company’s CFO can provide you with a higher return on your investment along with sound business advice from an expert with an objective viewpoint.
Shannon Brouillette and Leigh Ann Horton are partners of CFO Strategic Partners, an Orlando-based company that provides firms with highly qualified financial executives on a consulting basis—no doubt, a unique niche in the financial industry. The company has averaged 90 percent growth and has recently launched a franchise program in 30 states across the U.S.
