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9 Advantages Of A Part-Time Finance Director

The quicker you want your company to achieve its goals, the sooner you should consider hiring a part-time Finance Director (‘FD’) or Chief Financial Officer (‘CFO’).

That’s because a part-time FD or CFO will provide your company with the high-level financial expertise necessary to scale up (things you and your team may not even be aware you need), for a fraction of the cost of a full-time FD/CFO.

Hiring a part-time FD or CFO provides your company with many advantages that really help it to grow and stand out in any marketplace. But here are the top nine advantages you and your employees and stakeholders can expect when you hire a part-time FD/CFO:

Cost-saving
By hiring a part-time rather than full-time FD or CFO, you can avoid the often-hefty recruitment and hiring costs (and the delays they inevitably entail). What’s more, you can hire a part-time FD or CFO for a fraction of the cost of a full-time employee. You won’t have to offer a benefits package or bonuses to retain the appointee.

Strategic advice
Your part-time FD or CFO will provide you with strategic analysis and support on every financial aspect of your business. A report from the Financial Executives Research Foundation (FERF) described CFO’s as “critical to the success of start-up and early-stage growth companies” since they provide key insights.
It found CFOs play key roles in not only managing a young and fast-growing company’s finances but also in setting broader strategic goals and establishing and achieving financial and non-financial milestones.

What’s more, part-time CFO’s or FD’s can highlight potential threats or risks of which you and your team may be unaware or perhaps don’t know how to deal with.

Flexibility
You can use the services of your part-time CFO or FD for what you need when you need it. That could be for a variety of different financial functions or a specific project. This means you and your CFO or FD can tailor the role to suit your company’s needs at any time.

Multiple industry experience
Although you can choose to work with part-time CFO’s or FD’s who have direct experience in your given industry, you can also opt to work with those that have experience across multiple industries. The advantage will be that your CFO or FD will provide you with access to networks and multi-layered insights that you might not otherwise have.

Crisis management
The loss of major contracts, customers or employees can be devastating for any business. Your part-time FD or CFO will be able to help you and your team navigate your way out of the crisis. This could include producing short-term cashflow reports, identifying costs that can be cut, producing new financial forecasts, and helping with raising vital funds.

Sounding board
Running a company can often be a lonely, stressful experience for CEO’s, according to the FD Centre’s Chairman Colin Mills in his book ‘Scaling Up How to Take Your Business to the Next Level Without Losing Control and Running Out of Cash’.

He’s seen first-hand what pressure does to business owners.  “I’ve sat in sales meetings with entrepreneurs who had literally been brought to tears by stress and frustration and the feeling that it’s all too much.”

That’s where a part-time FD or CFO can help. He or she can act as an independent sounding board for the over-burdened, stressed-out business owner. With their ‘big business’ experience, it’s more than likely CFO’s or FD’s can provide solutions to what can seem like overwhelming problems to the CEO’s of growing businesses.

Mentorship for your team
Part-time CFO’s help to establish sound reporting systems and tools that help improve reporting metrics and communications to investors. They can also act as mentors to members of your existing finance team, guiding them where necessary and providing the advice they need to rise to new challenges.

Access to a national and international network
If you choose a part-time CFO or FD from an organisation like the FD Centre, you’ll benefit from the expertise from all the FDs in its worldwide network. That’s hundreds of years of experience in every aspect of finance—all for a fraction of the cost of employing a single full-time FD.

You won’t get left behind
If you’re still hesitating about whether now is the right time to hire a part-time FD/CFO, consider the sorry tale of Kodak—a company that got left behind, despite once being one of the most powerful companies in the world.

Kodak was once known for innovation (being the creator of the Box Brownie camera, Kodachrome film and the Instamatic). Here’s what’s remarkable—a Kodak engineer Steve Sasson developed the world’s first digital camera way back in the mists of time (actually, 1975). Okay, it was the size of a toaster, took 20 seconds to capture low-quality images which had to be viewed on a TV. But still… it had the potential to disrupt the market massively.

The company poured billions into developing the technology to take photos using mobile phones and other digital devices but delayed acting on it due to fears digital technology would destroy its film and photographic developing business. It failed to act fast enough and to identify the opportunities posed by digital technology.

On January 19, 2012, Kodak filed for bankruptcy protection in 2012, then exited its legacy businesses and sold off its patents. It re-emerged in 2013, albeit in a vastly slimmed down version of its former self.

If you want to avoid becoming a post-script or salutary tale in your market, appoint a part-time FD or CFO. He or she will provide you and your team with strategic help and advice to recognise threats and to seize opportunities—thanks to vast experience and expertise.

The FD Centre (and CFO Centres) offer the services of part-time FD’s or CFO’s with big business experience who can use what they know to help your company achieve rapid yet sustainable growth. What’s more, they’ll help remove fear, confusion, and stress from the entire process.

The FD Centre is a member of the Liberti Group, partners of Family Business United, so to find out how an FD Centre part-time FD or CFO could help your business, make contact with  them on 0808 164 8902. To book your free one-to-one call with one of their part-time FDs, click here.

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