You've put a lot of time and passion into building your business. You have a solid revenue model, a business plan, financial forecasts and you are well supported. So all you have to do is make your business sustainable.
Your financial director or CFO (Chief Financial Officer) can help you achieve this important step in order to support your growth and meet your entrepreneurial challenges.
The role of your CFO is to put in place good management control systems. These performance checks aim to verify the adequacy between your business strategies and the performances achieved. They are often presented in dashboard form. However, before setting up an expensive dashboard and systems, it is important to put in place at least – and inexpensively – the following 8 key controls:
- Have realistic budgets
- Plan a cash flow budget and implement a spending control system
- Plan IP (Intellectual Property) asset protection strategies
- Establish an authorization system and register of major contracts
- Implement an accounting and administrative management manual
- Establish frequent management meetings and an open communication system
- Track budgets against actual results and measure performance gaps
- Evaluate inefficiencies and implement corrective measures
These performance controls are necessary and critical for the growth and sustainability of your business. However, you should not neglect the elements of influence external to your company. Your CFO and management team will need to keep abreast of evolving external factors that can have a significant impact on achieving your financial goals.
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