The role of a modern CFO continues to develop, especially at fast-growing companies. Besides accounting and finance, a CFO has to oversee operations, HR, fundraising, and business strategy. Along with other C-suite leaders, CFOs take a leading role in making critical decisions.
So, what is the role of a CFO at fast-growing companies, and how do they support that growth through fundraising? Jeremy Foster, CFO at Talroo, a data-driven job and hiring event recruiting platform, breaks this down for us.
In this episode, we discuss the #1 CFO challenge, the CFO role in work culture, how CFOs can support growth within a company, the role of the CFO when preparing for fundraising amongst other interesting topics.
The #1 CFO Challenge: Staffing
Staffing becomes the number one pain point for most CFOs. When there's a shortage of talented people, things become even more problematic. The great resignation forced companies to rethink talent acquisition and prioritize it the same as customer acquisition.
“For most organizations today, the most important resource is people”
The CFO Role in Work Culture of a Company Preparing for Fundraising
Offering people positive experiences is crucial for supporting a thriving work culture. You also have to make sure that you're bringing in the right people and that you have a high level of transparency within the organization.
“I would argue that for any company transparency is, if not the most important function of a CFO, certainly one of the most important functions of a CFO”
How Can CFOs Support Growth Within a Company?
Make sure that you're putting resources where they need to go. Look at what limits the organization from growing. Identify what types of products will have opportunity in the market space.
“It always starts from the perspective of what limits the organization's objectives. With high growth or organizations, that's what typically limits growth.”
What Is the Role of the CFO When Preparing for Fundraising?
As a CFO, you need the ability to go back and look at the underlying business model. You need to manage three key building blocks that any modern investor looks at: the lifetime value of a customer; how much total revenue and gross profit you will generate from each customer; and how much it will cost you to acquire that customer.
“The key formula is if I pour money in the top, do I get more money out the bottom? As long as you can support a model that can drive that result, with a high degree of confidence, a good level of support, and data, then you're gonna be able to get investment.”
Advice for CFOs looking to drive strategic value within their organizations to grow revenue and margin
Start with a typical SWOT analysis to understand the organization's capabilities. Look for opportunities to drive extra value inside or outside the organization. Then, figure out how you get the resources necessary to take advantage of those opportunities.
"If you wanna be a strategic CFO, the key is to stop thinking about how do I make finance bigger or how do I finance more powerful? And it's more about how do I make the organization more successful? And where is the best place to find those resources and reallocate those resources so that the company can grow?"
Ready to support your CFO? Take a look at our F&A program to see why CFOs from a wide range of industries trust Personiv as a partner for growth.