You have the funding, now what? Many entrepreneurs are able to secure funding for their business to start their operations or expand existing operations, but lack the understanding how of how to use this capital in the best possible way to ensure growth. There may also be a lack of understanding what the responsibilities are with regards to repayment of loans or investments, which can be a minefield for entrepreneurs who do not have a sound financial background.
Managing a company’s financials may seem simple enough, money in versus money out, but do you have a deep understanding of interest rate charges, taxation laws for your type of business, shareholder agreements, dividends or operational capital? No? Don’t feel alone as there are many entrepreneurs that don’t have these skills so they turn to experienced financial practitioners who are able to guide them through the processes so their companies remain financially sound and have a healthy balance sheet, allowing the entrepreneur to focus on the business of business.
Often entrepreneurs of small to medium size business owners need the guidance and advice of an experienced financial expert, who has had a number of years’ experience and the necessary qualifications, but don’t necessary have the budget or working capital to allow for this. Luckily the landscape of business financial assistance has adapted to allow access to the top financial practitioners at a fraction of the price.
How you ask? Simply, there are companies that have evolved in the competitive business environment that specialise in offering business financial assistant to businesses via an outsource model. The outsource model allows easy and economical access to professionals on a part time or interim basis. Businesses may be in dire need of an Financial Director for their organisation but don’t necessarily need that Financial Director on a full time basis, alternatively, the business may need an Financial Director but are unable to afford this level of professional.
As with everything in a successful and competitive business environment, those that adapt are usually those that prosper. This outsource model will be the future for financial business assistance. The concept is similar to that of fractional ownership where you only pay for the time you use. So if you need a Financial Manager (FM) or Financial Director (FD) and cannot afford the services of a full time resource, then this is definitely the model for you. This model is currently being used effectively by both large corporates, who are looking for an interim measure when recruiting a permanent placement, or by medium size enterprises that only need a Financial Director or Financial Manager for 3 days a week based on their budget and scope of work. By using this model, company leadership are secure in the knowledge that they are getting the best advice for their business, where previously that would never have been able to afford this advice.
Do you need a part time Finance Director (FD)?
Which leads to the question; do you really need a full time financial manager (FM) or Financial Director (FD)? It is important to note that the financial executives we are discussing here are not bookkeepers but are highly qualified individuals and should have at least 10 years’ experience within the financial environment. Due to their experience and knowledge, these part time or interim Financial Managers and Financial Directors are able to support and advise company management on the best financial decisions that benefit the company in the long run. So make sure you know all the options available to you before you engage any type of financial resource, permanent or not.