Is a recession looming? If you’re like the vast majority of CEOs, you’ve probably answered yes to that question. Even worse, you may expect the coming recession to be worse than the previous one.
In times of uncertainty and economic worry, you may not know who to turn to or where to get reliable advice about your company’s stability and future. Or, you may be concerned about the cost of hiring someone to help you navigate financial uncertainty. Fortunately, you have an affordable and reliable option for getting the financial support and advice your company needs to weather a potential recession: Working with an outsourced or virtual CFO. A vCFO can help you prepare for a recession and strengthen your company, so you emerge from the setback stronger than ever.
Here’s how a vCFO can help CEOs weather a recession.
Find Ways to Cut Costs
A recession coupled with high inflation can be a double whammy for many businesses. Your company may face decreased revenues at the same time that it’s seeing ever-rising costs. If you’re feeling overwhelmed and uncertain about what you can do to reduce your expenses, your vCFO can help. They can evaluate your company’s budget and spending and recommend cost and expense reductions.
Along with finding a way to trim your expenses, they’ll identify other ways to help your business better manage cash flow and keep more of its earnings in your pockets, such as by finding relevant tax credits or deductions.
Often, companies look to downsize or lay employees off at the first sign of a recession. But your company might be better served not by laying people off but by improving your hiring process. If you have high turnover rates or struggle to find the right people for the role, your vCFO can guide you in making better hiring decisions.
Building a strong team of employees is critical for your company’s success during a downturn and in the recovery period immediately following.
Create Plans and Strategies for the Future
A strong financial strategy can help your company get through a recession and even emerge from challenging times stronger than before. Your vCFO can use your current financial situation to help you improve and create a strategy for future growth. They can advise you on ways to find funding, even when financing options seem to have dried up and help you determine the best way to ensure the funding you already have.
Worrying about a recession can make it challenging for you to plan for your company’s future or determine the right path. Don’t stay up at night fearful of what the economy can bring. Work with the virtual CFOs at New Direction Capital and stop feeling overwhelmed and stressed about your business. Contact us today to learn more.