As the owner of a business, you might already know all too well the expense involved in adding new members to your team. You might also be familiar with the cost of bringing on the wrong hire. Some estimate that bringing on a bad hire can cost companies hundreds of thousands of dollars. When money is tight or when you’re working to take your company to the next phase of growth, you don’t have a single dollar to spare or waste on a poor hiring decision.
Whether you need to make a single hire in the year to come or plan on expanding your team significantly, a virtual CFO can help you ensure that you hire the right person from the start. Your virtual CFO will consider where your company is now and where it wants to be in the near future to help you bring on the most suitable candidate for a position. When helping you make a hiring decision, your virtual CFO will look at several areas of your business.
Determine the Direction You Want Your Company to Head
You can count on a virtual CFO to work with your company to help it develop a strategic plan, one that allows you to achieve sustainable growth. Knowing what your company’s plan is will help you zoom in on its goals and choose a general direction for it to head. Once you know where your company is heading, you can make hiring decisions more efficiently and easily. For example, if you know that you want to move towards an online-only presence, away from a brick-and-mortar presence, you’ll most likely want to hire people with experience in the digital world. Alternatively, if you plan to reach out to a new demographic, you’ll want to look for new team members who have experience working with or connecting to that demographic.
Assess Your Company’s Financial Situation
Your company’s financial situation plays a big part in determining who you hire and how many people you hire. Your virtual CFO can evaluate where your company stands today from a financial perspective and can make recommendations to help you improve your financial standing, such as seeking out investor financing or debt financing. The vCFO can also help you find places to save money or reduce expenses.
In some cases, you might need to adjust your approach to hiring to help your business trim its expenses. For example, instead of bringing full-time employees on board, you might choose to work with independent contractors, who are usually less expensive. You might outsource certain roles, such as that of CFO, to save on the cost of having a full-time professional on your team.
It might also be the case that it’s in your company’s best interest to hire someone who might seem more expensive than another candidate upfront. Even if you end up paying a higher salary or offering a better benefits package to a particular individual, doing so can end up saving your company. Your virtual CFO can help you weigh the pros and cons of making a particular hire from a financial perspective.
Review the Skills to Look for in a New Hire
Your vCFO can also help you determine what you need from a new hire. Some of the skills that a new employee should have might be obvious, such as the ability to perform the tasks of their job and the education or knowledge that backs up their skills. But certain soft skills might not come to mind immediately or be apparent right away when you are considering what you need from a new employee. Your vCFO can help you evaluate the skills that would make a candidate stand out from the rest and help you determine the soft skills that are a must-have.
Evaluate Your Company’s Job Postings
To make the right hire, you need to look in the right places and create job postings that attract the right candidates. While there’s little you can do to stem the tide of underqualified applicants, there are things you can do to ensure that the candidates you want to hire actually apply for the position. By helping you determine what you can afford and the skills you need in a new hire, a virtual CFO can help you design a job advertisement or posting that will make the right candidates most likely to apply.
Working with a virtual CFO in 2021 and beyond can help your business successfully map out its plan for growth, including bringing on the right team of people. To learn more about how the team of vCFOs at New Direction Capital can help your business grow, contact us today.