Being in business means facing and overcoming multiple challenges along the way. We’ve been taking a close look at how CFOs can help CEOs navigate the many challenges that come their way, from developing a strong plan for growth to navigating change and hiring the right talent to making a plan for management transition. Now, we’ll examine how a vCFO can help your company stay on top of the competition.
The odds are likely that there’s at least one other company out there that offers a product or service similar to your own company’s. You might not be Coke and Pepsi, but you’re still battling for the same market share or customer demographic. A vCFO can help you develop plans and strategies that keep your business one step ahead of the competition. Here’s how.
Focus on What You Do Well
What makes your company different from the others out there? This question can be more challenging to answer than you might think. Sometimes, when you’re in the thick of a business, it can be difficult to see where your strengths are or what factors differentiate your company. A vCFO can provide an outside eye, helping you identify the specific features that make your business unique.
Similarly, they can then help you highlight those unique offerings or features.
It might be the case that you and the vCFO struggle to figure out what your company’s unique selling point is. In that situation, a vCFO can take you back to the drawing board, helping you create a strategy and plan that sets your business apart. They can brainstorm ideas with you to help you find the one thing your company does better than the rest or does that no one else is doing.
Analyze Your Competitors
In addition to focusing on what your business does really well, a vCFO can also help you analyze your competitors, so you know what they’re doing. The first step is to determine who your competitors are. It can be a single business or multiple. Usually, your competitors are businesses that provide a service similar to yours or sell a product like yours. They might be in many of the same markets as you. If you’ve lost business to them in the past or almost did, the company is a competitor.
Once you have a list of your competition, you and your vCFO can dig deeper, looking at their products, their price points, and their marketing materials. The more details you have about the competition, the better.
It’s also worthwhile to think about who your competitors might be in the near future. There might be businesses that are looking to expand in your area or that want to try and connect with your target audience. Knowing who you’re currently up against and who you might be up against soon helps you and your CFO create a plan to stand out.
Discover the Value You Offer Customers
Your customers can be valuable when it comes to finding ways to stay ahead. Connect with current and past customers to get a sense of what you’re doing well and where you have room for improvement. Past customers or customers who haven’t worked with your business in a while can be particularly useful when it comes to getting insight, as they can tell you why they switched to another company.
Know When to Take Risks
Sometimes, getting and staying ahead means taking risks. You might have to take out bank financing to expand your company into a new market or you might risk alienating customers by changing your formula or introducing a new product.
A vCFO can help you determine if the risks are worth taking. If so, they’ll work with you to develop a plan to make the leap.
The team at New Direction Capital is here to help CEOs tackle and solve many of the challenges they face most often. If you feel stuck and unsure of where to take your company next or how to differentiate your business in a crowded field, we’re here for you. Contact us today to hire your virtual CFO.
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