For those of you who know us at Timm Funk Associates, you know we specialize in small to medium-sized businesses in the local Sioux City area, many of which manage large inventories. Of the number of inventory-based clients we serve, 80% have needed assistance tracking this critical component of their businesses.
More and more Siouxland small businesses are incorporating part-time CFOs into their executive teams--and for good reason. A Chief Financial Officer can provide many financial and operational services that many CEOs and business owners have little time, training, or patience for, and having the professional experience available on a part-time basis not only makes it accessible, but also affordable.
According to the Small Business Administration, anywhere between 400,000 and 600,000 small businesses close their doors each year. While retirement and acquisitions account for some of these closings, the majority of exiting companies go out of business for largely preventable reasons.
They say no man is an island, and no small business is, either. In fact, the most successful entrepreneurs know what roles they can handle, and which ones are better left to those who are better equipped. The truth is, there are only so many hours in a day and only so many things entrepreneurs can do well while awake.
Running a business in Siouxland is not for the faint of heart, or for those who despise financial analytics. Whether a company has two employees or 40, business owners often have to grapple with historical data, current performance, and forecasts; a tough job in and of itself when you aren't also wearing at least five other executive hats.
It can be tricky to know when you can handle the role as an executive finance officer on top of your other duties and when your company is best served by hiring a part-time CFO. If you are contemplating the decision, consider these three questions.