It’s not always obvious what a good start-up CFO brings to a venture. or certainly, that’s what we hear from newer ventures who have a love-hate relationship with finance. What we’ve learned through this process is that finance people come with a set of expectations that are very often not aligned to how modern, fast-paced, digital-first businesses operate.

It’s as much a change in expectations on the part of ventures that will be the key driver to framing the CFO role and it will take both sides to drive that change. Our job at EmergeONE is to educate around what a good start-up CFO brings to the table, how this very often steps outside of “finance” and how it can be a key asset in a growth trajectory.

But why isn’t it obvious?

Before making the case it seems sensible to understand why the value isn’t obvious in finance. We think it comes down to a few key points, namely:

• Perception is 9/10th of the law. Most people look at finance as a bookkeeping exercise and a monthly chat with an accountant. It doesn’t scream growth it screams necessary evil.
• Finance isn’t seen as cool or innovative, especially where tech is concerned. Don’t worry we’re changing that 😉
• For a lot of growth companies getting serious about finance can be perceived as boring and structured. It’s like your first job after 3 years of parties at Uni. It’s a big turning point for founders.

It should be, here’s what a good start-up CFO brings

• As our founder, Aarish says the CFO is often the first grey hair into a young business. No comment on the colour of his hair! But the point is relevant, a good start-up CFO brings experience and that’s important when you want to move quickly because it helps avoid making mistakes, running out of money, and not making it.
• A good start-up CFO drives growth way beyond managing the numbers. They can be invaluable when setting strategy. They help shape the culture of a business and that’s the point they come on board when it could be argued you’re not a business you’re just a project. They change that.
• If you’re raising money a good start-up CFO will know where to go to get it. They will understand the financial landscape and how to cut the best deal for your business. So many times we see founders who’ve raised money but tied themselves into deals that do more harm than good. It can be avoided.
• As a business grows it needs process and structure. That doesn’t mean red-tape it means being rigorous, avoiding waste, and creating a structure and culture that pulls in the same direction. It’s valuable because it’s financially efficient, it also sends all the right signals to the people you will want as investors in your business.
• The final attribute is something that ties into the general perception of finance. Most people look at finance as an inwards and backward-looking exercise, scrutinising what has happened and saying what should have happened. A good start-up CFO, and certainly our approach to finance is the polar opposite. We take a forwards and outwards approach, as all growth company CFO’s should, helping guide what needs to happen next. After all, what happens next is where the growth is! 

Whilst it certainly isn’t a blueprint for your recruitment drive we hope this opens your eyes to what could be. Finance is a misunderstood and sometimes much-maligned part of any business. It could and can be so much more so long as we have the right expectations.

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Right back to building!!