Why Virtual CFOs for your Business Growth Strategy
1. Managing 5 types of Strategic Risks:
A Virtual CFO being experience in multiple industry experience, he is able to visualize the risks associated with the business Model and play significant role in mitigating all the strategic risks at cost effective manner ;
- Reputational risk: Better management in Public & customer perception and employee engagement
- Financial Risk: Revenue Generation and Cost Control
- Governance Risk: Control, planning and monitoring
- Operational Risk: Inefficiency and waste identification
- Competitive: Customer and market drivers
2. Multiple Industry experience:
In today’s digital economy, the only truly sustainable competitive advantage is the speed at which an organization can sense and respond to the needs of its customers. CFO’s unique experience of working with multiple industries on multilayered insights and networks shall have strategic advantage partnering with CEO to manage the growth with equal speed
3. Less Expensive:
A virtual CFO is less expensive than the salary of an in-house CFO with similar experience. A virtual CFO doesn’t require benefits or bonuses or retirement benefits, virtual CFO pricing will be based only on the amount of time/deliverables your organization needs particularly in Family run organization, startups and MSME
4. Rich Network
Robust network of key individuals and organizations for you to leverage from, such as financiers, lenders, and other experts. A CFO who is part of a virtual CFO team has not only his or her contacts, but also has access to the network of the rest of the CFOs on their team. That means if you are raising funds or expanding into new geographies or products/services, your CFO will know some people who may be able to help you get off to an even better start.
5. Lead Indicator
Ability to provide lead indicator in the deviation in the current business process (without having emotional connect) – Eg. Higher input cost, outdated technology, lower customer preference.