Should your Startup or Spin-off hire an interim CFO over a full-time CFO?

 

Every startup or spin-off may consider hiring a CFO to manage the financials and show relevant metrics to key stakeholders. However, young companies often lack the necessary financial know-how and resources, or just cannot identify a capable person who is up for the task. A specialized startup CFO might be the right answer to that. He or she is very important and can proactively

1) Assess and quantify your market and business from an investor’s perspective

2) Generate business intelligence by measuring market activities and operations

3) Refine your strategy and business model by identifying and selecting attractive markets and customer segments

4) Implement a plan and put procedures in place to ensure you a strong financial future and startup

An interim CFO exactly performs all tasks as a full-time CFO but for a particular time period or project. She or he works as your additional team member to increase the value and appeal of your business by

1) Implementing an efficient business activity monitoring and controllingsystem for tracking your market and operational performance

2) Validating your business model from a financial perspective

3) Preparing and maintaining a financial model and financial forecastfor budgeting, forecasting and controlling

4) Identifying and selecting attractive market opportunities with a systematic market assessment

5) Estimating the fair valueof your startup or spin-off

6) Creating a convincing business case to bootstrap or present in front of investors

7) Preparing a convincing pitch deckfor investors

8) Preparing you for the due diligenceprocess

9) Handling investor communication and preparing investment documents

An interim CFO brings extensive experience to your startup that has been gained from previous projects and many businesses. He or she reduces total costs of your startup by working at a lower cost in comparison to a highly experienced full-time CFO. An interim CFO tends to be a highly motivated person and provides a valuable outside perspective to your business. In specific cases, an interim CFO also helps your venture to fill the gap following the departure of a full-time chief financial officer.