One often repeated cliche in business circles is that it’s “not what you know, but who you know.” While that sentiment isn’t 100% accurate, there is some truth behind it. The more people you know and the deeper your business connections and relationships, the easier it will be to build and grow your company.
Many business owners aren’t sure where to start or how to go about building a network. Fortunately, a virtual CFO can make introductions and provide the networking assistance you need to get financing for your company and take the next steps toward growth.
What Is a Network?
A network is a group of contacts and connections, often in the business world. Business networks consist of potential customers, existing customers, and service providers. You may also have associates or individuals in related industries in your network.
A strong business network is often a two-way street. You may turn to people in your network when you need assistance or advice. In turn, they may come to you when they need a service or advice you can provide.
Why Do You Need a Network?
To use another cliche, no business is an island. Your company needs assistance from others throughout its life. For example, when you’re just getting started or looking to expand, you may need financial help. Having connections to banks or investors can help you get the funding you need. If you’re making plans for a new product or service, you want to connect with experts in certain fields or with designers who can help you create the next product.
You may even find your next business partner or lay the groundwork for your next company with the help of your network.
How a vCFO Can Help You Establish a Network
While some people are naturals when it comes to networking and reaching out to others, not everyone is. You may be shy or nervous about reaching out to others, sight unseen.
That’s where working with a virtual CFO can come in handy. A vCFO typically has a strong network and the ability to connect their clients to the right people. When you hire a vCFO, you can take advantage of their financial knowledge and expertise, and their connections.
For example, if your company is interested in equity financing, your vCFO can introduce you to investors who want to work with companies in your field. You’re more likely to get a response from an investor if you have a go-between to introduce you.
The same is true if you hope to get debt financing from a bank. A vCFO can help you decide on the right bank to work with and can act as the connection between you and the financial institution.
Beyond financing, vCFOs can help your company build its network in other ways. An outsourced CFO may be able to connect you to another business owner who’s looking for a collaborator or to a company that’s interested in being acquired or merging with a related business. Similarly, if you’re ready to sell your company, a vCFO can connect you to possible buyers.
The team at New Direction Capital wants to help your company succeed. We’re skilled at building and maintaining business relationships and can help lay the groundwork for your company’s network. Contact us today for more information.
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