When you first launched your company, you might not have had great expectations for its future. It could have been the case that you were expecting the business to operate for a few years, then shut down. Or, you might have thought that you could keep doing what you were doing indefinitely.
The reality is that all businesses need to grow. You can’t stay competitive in a crowded market if you don’t allow for growth and change. But a problem many CEOs face is they aren’t sure what they need to do or should do to allow their company to move to the next phase.
That’s where a virtual CFO can come in handy. A virtual CFO will work alongside you to help you craft a strategic growth plan, explore problem areas, and pave the way for a brighter future for your company.
Developing a Plan for Growth
The first step towards growth is the development of a strategic plan. A strategic plan outlines where you want your company to head in the future and the steps you’ll need to take to get it there. A strategic plan can be synonymous with a growth plan. It lets you see what you need to do to scale your business and push it toward the next phase.
When you work with a CFO to develop a plan for growth, you’ll first analyze where your company is, then make a list of goals and objectives that outline where you want the company to be. The plan will then describe the steps needed to help you achieve those goals. The plan should include specific action items, such as hiring three more sales reps or finding $100,000 in financing.
The last part of the growth plan should include a reflection phase. During it, you and the vCFO can analyze how the plan worked and what changes you could make as you move on to the next phase of growth.
Exploring Areas of Stagnation
Your company might encounter areas or times of stagnation. During stagnation, growth halts and it can seem as if your company is treading water. It might be staying afloat, but barely. A virtual CFO can help you identify areas of stagnation, examine the cause of the slowdown, then discover ways to push past it and get things running again.
Once you’ve explored areas of stagnation, you can work with the virtual CFO to determine what to do about it. You might reach out to your team members to get their input and advice or take a look at what your competitors are doing. While you might not want to copy your competition, you can look at their latest offerings to determine what you can do better or differently.
Finding Ways to Increase Profitability
Increasing profits is part of growing, but you might not know what you need to do to boost your profitability. A vCFO can help. They can give you guidance on ways to expand your market size or product offerings to maximize your revenues or increase profits. They might also give you advice on reducing your costs, which can also lead to better profits.
Exploring Capital Options
Increased growth often means a need for increased capital. Whether you’ve been relying on bank financing, investor financing, or a mix of both, a virtual CFO can introduce you to new capital options.
The key to success as a virtual CFO is establishing relationships with business owners and with investors and banks. Your vCFO can act as an intermediary, connecting you to investors who want to support businesses like yours. A virtual CFO can also help you establish strong relationships with banks, so you can get debt financing at desirable rates and terms. They’ll also work with you to properly structure your debt, saving your business money over the long run.
Growth can and should be part of your company’s future. Partnering with a virtual CFO can help you create a plan for growth that recognizes your goals and that aligns with your company’s mission. To learn more about working with a vCFO and how it can help your company thrive, contact New Direction Capital today.