Building realistic business goals: the CFO’s crucial role

When building a new business, you need a strong foundation to make your dreams come true. A Chief Financial Officer (CFO) becomes a crucial ally in guiding your business to set realistic goals for the year ahead.

Setting achievable goals requires a clear understanding of your current standing. A part-time CFO can provide clarity and analysis, enabling you to make informed decisions about where your business stands. By knowing your starting point, you can set goals that are challenging yet attainable, laying the groundwork for sustainable growth.

Setting specific goals:

Vague goals are akin to chasing mirages – elusive and demotivating. A CFO can help crystallize your business objectives by making them specific and measurable. Instead of a generic goal like “increase sales,” a CFO might recommend a specific target such as “sell 25 units every month for the next three months”. Specific goals not only provide a clear direction for your team but also serve as motivational milestones, driving everyone towards a shared vision.

Working out an appropriate time frame:

A CFO adds the critical element of timeliness to your business goals. By considering external factors, market trends and economic conditions, they help you establish realistic time frames. Whether it’s doubling revenue by mid-year or achieving a specific milestone by a set date, a CFO ensures that your goals are challenging yet achievable within a defined timeframe.

Ensuring realistic expectations:

One of the key roles of a CFO is to ensure that your goals are not only ambitious but also realistic. Believing in the achievability of a goal is paramount and a seasoned CFO can draw on past experiences and industry knowledge to gauge feasibility. By asking questions such as, “Have we accomplished anything similar in the past?” or “What conditions would need to exist to achieve this goal?” a CFO ensures that your goals align with your business’s capabilities and potential.

In the pursuit of business success, setting realistic goals is the cornerstone of sustainable growth. A CFO, with their financial acumen and strategic insight, acts as a compass, guiding you through the goal-setting process. From understanding your starting point to defining specific objectives, determining realistic time frames, and ensuring the feasibility of your aspirations, a CFO’s expertise is invaluable. As you embark on the journey of the new year, consider enlisting the support of a part-time CFO to help you build solid foundations under the castles of your business goals. Contact The Finance Team here.