All Growing Companies Want The Same Things

Nov 22, 2023

Superman CFO

I volunteer as a SCORE Co-Mentor, and recently discovered that all growing companies want the same things.

SCORE works with the local Small Business Development Center (SBDC) and provides business owners resources and mentorship from experienced professionals. The topics vary, but most of the time, we provide advice on marketing, finance, and general start up questions. It’s free, so the value is pretty ridiculous. Volunteers are also not allowed to use the platform to advertise their services; therefore, all meetings have the mentee’s best interest at heart.

A week ago, I had the pleasure of consulting on four separate sessions with different businesses. There were a lot of takeaways, but one thing was clear by the end…

It didn’t matter what the business proposition was, how much revenue was coming in the door, how long the company had been in business, if they had an accountant or bookkeeper, or any number or other logistics…

All of the companies wanted the same things:

  1. To grow/scale.
  2. To purchase something expensive or hire new employees.
  3. To know if they could afford these things.
  4. To know how to get the money.

And the advice to them was all the same:

 

Get your books in order

It’s amazing that even with bookkeepers, companies still didn’t understand their financials. Most of the time, owners of small businesses handle the books themselves. This makes sense in the very beginning, but it still doesn’t mean the books will be done correctly. Please read my ultimate guide on things to know when hiring a bookkeeper to be sure your bookkeeper/accountant is capable.

Know your data

Business is driven by the Financial Statements, and numbers that support them. Before any decisions can be made, the data needs to be there, and it needs to be correct. From there, we can start painting a picture of what the business looks like to stakeholders. Is the business profitable? Should the company raise their prices? Where can they cut back?

 

Develop a Strategy

Once a company knows their numbers, they can start making decisions, and begin taking steps to achieve their goals.

 

Know how to present your data

Clean data doesn’t just help a business make decisions, it helps banks and finance companies know how well the company is doing. If a company wants to borrow money, they need a good story that will lend credibility to the request. Instantly, banks will know if what you’re selling is a good or bad bet from looking at your financials.

 

Sounds Simple, Right?

If these steps sound difficult, they are!

This is where hiring a fractional CFO like Maui CFO can come in handy. They can guide you through all of this for much less than the cost of a full-time accounting professional. The best part of this, is that the more you work with a fractional CFO, the more you, and your team, will start thinking like a CFO too.