In a typical CFO plan, one of the main goals of every company is growth. That means more sales, profits, investments, increased salaries, bonuses, increased market share, reduced average costs, and many other benefits.
But who said that's easy to do? Many businesses fail when stepping on the path of growth. But why does this happen, and how can you successfully grow as a company?
Bal Bhullar, Chief Financial Officer and Board Director of Electra Meccanica Vehicles, helped the company pivot from being a development stage company to a well-capitalized, high-quality automotive OEM. Today, she shares how to transition a company successfully from the developmental stage to the growth stage.
In this episode, we discuss what does it mean to be a CFO today?, transitioning a company from the developmental stage to the growth stage, what CFOs need to know to grow a company successfully, amongst other interesting topics.
Not Your Typical CFO Plan
Being an entrepreneur and having the financial acumen provides Bal a significant amount of depth to look into all sides of the business, both operationally and financially. She oversees things like strategy and the future and vision of the company. CFOs must understand how those work with both the operational and financial aspects of a company, as that’s required to meet the entire business plan.
“The role of the CFO has changed significantly over the years. You're the person that if the CEO isn't there at the time, you've got to know what the CEO's vision is.”
Transitioning From Development Towards Growth
Electra Meccanica is a Canadian designer and manufacturer of electric vehicles. In 2021, the company pivoted from being a development stage company to a well-capitalized high-quality automotive OEM. Becoming an OEM required capital to support that vision. An extensive amount of engineering and safety factors went into their Solo product before they were ready to deliver to retail customers.
“In two years of being listed on NASDAQ, we've implemented SAP as our ERP system, raised over $300 million in financing in two years, and we officially can say that we are an OEM”
What Do CFOs Need to Know to Grow a Company Successfully?
Set up a defined business plan of five years. Evaluate how to adapt and execute that plan and what resources you need to achieve it. Get the finance for your business objectives and the accounting, operations, and software that enables the technology to grow. Also, consider human capital growth.
“In order to have the company succeed, you have to have the money in the company and understand the different capital needs to allow the operational aspect of the company to move forward”
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