By now, we’ve all seen what can happen during times of uncertainty. People panic-buy items they might or might not need in large quantities. They sell stocks, causing the market to plummet. They feel a sense of loss and fear and generally don’t know what they’ll do next or where they can turn. The same worries and fears that affect individuals in times of uncertainty can also affect businesses. If you’re not sure where to turn or what your company’s next move should be during times of hardship or when hardship is anticipated, a virtual chief financial officer (CFO) can help.
If you’re feeling lost and don’t know what to do next, it’s a good time to hire a virtual CFO. Take a look at some ways of virtual CFO can help your business when all seems lost.
Re-Evaluate Your Business Plan
During times of upheaval, it can be worthwhile to go back to the drawing board, in this case, your company’s business plan. Re-evaluating your plan can be particularly useful if you believe that you’ve veered off course from it or if you believe that the plan no longer serves you or works with your goals.
Your vCFO will examine your existing plan and ask you to reflect on whether it currently works for you or which aspects of it can be adjusted. After assessing the existing plan, the vCFO will work with you to help you develop a new or improved strategy.
Find Where to Cut Back
Another question you might find your business facing in challenging times is where should we cut back? It’s important to find areas where you can trim expenses or make do, without negatively affecting your company’s overall product or service. Your virtual CFO can bring a perspective to the table that you might otherwise have access to. Since they aren’t in the thick of things, they are usually able to take a balanced and neutral approach when making recommendations about where to cut back.
Make a Plan to Protect Employees
It’s not only your company that might be feeling the pinch of uncertainty right now. Your team might also be feeling nervous and stressed out. Your vCFO can work with you to come up with a game plan that will help you protect your employees. For example, if you are facing a reduction in revenue or a slow down in service requests or product orders, your vCFO can help you evaluate where you might be able to cut back so that you can avoid lay-offs. Another option might be to offer employees a deal. They might work less in exchange for a slight salary reduction. They’ll still get paid and have their benefits, but their work schedule will be reduced for the time being.
If your business is one that becomes critical during stressful times, you might work with your virtual CFO to come up with ways to thank your team. If the jobs they do become more challenging or risky, you might increase pay, if possible. Another option is to offer bonuses and perks, such as gift cards, to thank your team for stepping up during a challenging time.
Your virtual CFO can also provide guidance on ways to keep your team up-to-date about what’s going on with the company and the world in general, without causing panic.
Look for Opportunities
While challenging and uncertain times might seem only to spell disaster, there can often be a ray of light behind the clouds, or a chance for a company to grow. Your virtual CFO might be able to steer your company toward growth opportunities during times of turmoil. For example, your vCFO can take a step back and look at the big picture, then make a recommendation to explore a new market or pivot your product in a new direction.
When you don’t know what’s next for your company or the world in general, you need the objective eye of a virtual CFO. They can help you put together a plan that will help your business move forward, even if you can’t clearly see the path or what lies ahead. To learn more about how a virtual CFO can help your business, contact New Direction Capital today.