There are many facets to being a CFO. From running multi-billion-dollar tech companies to launching a start-up in the hopes of becoming an industry leader, navigating the path to financial success is not always easy. No matter your experience level, it never hurts to brush up with smart tips for savvy CFO’s.
Taking Investor Communications Beyond the PowerPoint Presentation
The PPT is a wonderful tool for organizing and sharing information. Investors have become well educated in scrolling through slides, looking for key messages. However, with everyone utilizing PowerPoint, things get boring. Spreadsheet numbers, even positive ones, can easily make investors eyes glaze over. Think of investors as students learning about your business. You are selling to them as much as educating them. Keep it fun. Go beyond the classic PPT; take inspiration from TED Talks and inspire your investors.
Are Innovative Financing Strategies Always Right?
Building a business, you often hear that you must spend money to make money. While that is true, finding a balance is important. With new companies it can be enticing to follow the latest trend. However, remembering the textbook position that revenue growth must outrun expenses is key. Resist the shiny and new while your bottom line is still gaining ground. Disciplined management early on allows you the funds to jump on the right opportunities when they come along.
Value Based Management Drives an Organization
Value based management can help you and your team stay on track. In this model every aspect of business is looked at through the lens of the value of the company at present, cost at present and the value of the company in the future. Are you spending money where money is being made? Why is spending this money important to the bottom line?
Unlike in your presentations with investors, here is where spreadsheets are key. As a business leader, chances are you have already adapted this model. If you are new to the field, VBM may seem like a lot of busy work. Knowing the value of each facet of your company allows you to make smart decisions and move confidently in the direction of success. After all, as CFO, you are the co-pilot of the company.
Why Is It Important to Get to the Nitty Gritty?
As a CFO, you may or may not have worked for this company before. In many cases, you may have a finance background, but are in the tech world for the first time. Yes, the coders you have on the ground floor are 100 times better than you. Yes, you know business better than they do. What is important is making sure you know the ins and outs of every department. Value is not just the numbers, but how each part of the company is running. Spend time working side by side with each division. Not only will this benefit the bottom line, but your personal attention will increase morale and trust.
Navigating the corporate finance world is like a game of Tetris. You have to think ahead so everything fits together. Innovation, inspiration and standard practices must be balanced. If you are in need of a guide, our team at Douglas Park Law has all the right tools. As Atlanta’s Tech Attorney we understand the sophisticated transactions necessary to make your business a success.