When you take your car in for a service appointment, a good practice is to keep a detailed log of what services were performed. Even if you aren’t planning to sell the car now or anytime in the near future, by keeping these records and performing needed maintenance, you are keeping value in the car. This way, when you get to the point when you are ready to sell, you are more likely to sell it for more than if you didn’t do these things.
The same thing needs to be done with your company. You need do the maintenance and in all things you do think of adding value to your company. Will buying this equipment add value to my company? How many additional units will it allow me to produce? There may be related expenses that you haven’t thought of, i.e. does your new equipment cause your insurance premiums to rise significantly? Will I need to hire additional employees? Hiring a CFO to consult with you and guide you through these decisions will help make sense of options.
Isolating these decisions and turning over to a professional will help you when it comes to making big decisions. Sometimes emotions and excitement can cloud our judgment or sheer lack of knowledge can cause us to make decisions we wouldn’t normally make. CFO consultants have the knowledge and can step back and evaluate from a distance. Areas they will be able to help with are pricing, evaluating margins, analyzing the affect on profits, expenses and more. If additional help is needed in other areas of the business, the consultant can refer a professional in this area.
Most business owners have a vision for what they want to accomplish, but often times bringing the vision to reality involves a lot of work. Using consultants is an easy way to see whether taking the next step in your vision is feasible. Even if the recommendation is to wait until the business matures or you finish a current project, it at least starts the process in moving towards the goals you’ve set. Knowing that your vision is in motion can open up opportunities or bring more ideas to mind.
Adding value to your company isn’t always buying new equipment or hiring more employees, it also is the way you run the business. Running a ‘tight ship’ adds value also. This can mean constant attention to expenses, adhering to budgets and achieving sales goals. Your employees are your biggest asset and having their support in your efforts goes a long way.
A CFO consultant is a key piece to adding value to your company. Whether it is guidance in making big strategic decisions, help with bringing your vision to reality or making sure you are running the company in the best way.