Running a business in today’s world comes with a perplexing number of strategies and growth philosophies to choose from. A certain level of grounding is necessary if you want to drown out the noise and focus on what is needed for your unique situation.
As it stands, finances are the backbone of the success of an organization, and all its potential hinges on one’s knowledge of how to spend strategically. Even with all the super hacks and growth secrets, there’s really nothing to gain without a strong and money-conscious voice to help.
If you wish to drive your business forward, you’ll need an objective voice that is able to adequately provide business valuation insights and plan some fantastic strategies.
Who is a Virtual CFO?
Like a traditional Chief Financial Officer (CFO), a Virtual CFO is primarily responsible for managing a company’s financial operations in a way that keeps things stable and financially healthy. Their expertise lies in the ability to view your company from a bird’s eye view.
Unlike business owners with a vested interest in everything related to an organization, a Virtual CFO looks at things differently. Thanks to their experience in financial roles, these experts are able to give accurate assessments of your company’s health and provide strong financial advice that can improve investor relations.
Why you need a Virtual CFO?
Fortunately, Virtual CFOs are an even better idea compared to the regular CFOs found in executive C-suite roles. How? Well, with a Virtual CFO by your side, there’s less room for company politics and redundant bureaucracy. Instead, they can get straight to business, receiving all the necessary information before proceeding to provide feedback.
With the right virtual CFO team, you can gain access to highly experienced personnel that are held to a higher accountability, will implement systems and processes as well as provide knowledge over a wider range of industries or situations, which most small to medium businesses wouldn’t be able to hire on an individual level.
The nature of this feedback is also going to be satisfying to hear, regardless of whether it sounds positive or negative. The reason for this is down to clarity. A Virtual CFO service is designed to give any type of business digestible and well-communicated feedback, along with a good structure for what needs to be done moving forward.
Essential roles of a Virtual CFO
A Virtual CFO is much more than a doctor for your company’s financial health. With a masterful approach to their outsourced CFO services, you can successfully increase growth in ways that once seemed impossible. We’ve compiled some of the most valuable benefits that you can enjoy when your outsourced CFO services are put to good use.
Corporate advisory services
A Virtual CFO is an expert at rendering corporate advisory services. A CFO advisory completely changes the landscape of how your company approaches strategic decisions. Instead of brainstorming based on theoretical knowledge, it’s more effective to use the services of a CFO advisory, especially thanks to the fact that they have practical experience with many of the concerns you’ll be addressing.
Comprehensive business valuation
Once you’re engaged with CFO advisory services, one of the first things to do is get your business valued. A business valuation gives your chief financial officer an idea of your company’s worth and how it fits into the bigger market it competes within. Estimating the economic value of a business involves analyzing every aspect of the company, including the management, possible earning prospects, state of its industry, capital structure and other assets.
Why is a business valuation necessary?
A Virtual CFO Service that provides an accurate business valuation will open up doors of potential for what your company can achieve. Think about it. With a benchmark value, you can begin to seek funding from potential investors, or leverage a equity bank loan against the businesses value, with a foot up compared to much of your competition, especially if your organization is a grassroots startup.
With a recent valuation, potential investors don’t need to grill you with complicated questions (although it helps to be aware of your finances). Instead, they can take a look at the valuation and learn all they need to know. This allows you to focus on selling your strategic partnership in a way that can quickly generate responses and progress towards solid opportunities.
Meanwhile, selling your business or initiating succession is another aspect that can be made easier with a business valuation. With your CFO outsourced and a strong advisory partnership, you can totally ensure that exiting a business isn’t something that incurs a net loss. Whether you’re plotting a retirement or preparing to hand it to a new owner, there’s more clarity going into these discussions with a valuation.
Mergers and acquisitions
With outsourced CFO services, you can get some good advice on the best prospects for M&A. Also, you’ll gain valuable knowledge by learning how to negotiate terms in your favour, especially when the other party is more knowledgeable than you as a business owner or has advisors controlling the process. The stress from dealing with unknown variables will not be a problem with a Virtual CFO by your side.
A Virtual CFO will be instrumental in analyzing the market, competitive landscapes and other trends to know the best strategic fit. When undertaking any due diligence, a qualified CFO has the ability to assess a target’s assets, liabilities, legal status and regulatory compliance. Without these steps, it’s possible to plunge into a business deal that collapses after acquisition due to a lack of legal backing.
Raising capital
With a good Virtual CFO on your side of the ring, there’s nothing stopping you from dreaming big. The presence of this expert will help you find the right sources for negotiating new deals to raise capital and get the right resources for growth. Some Virtual CFO services (Corporate Advisory), have dedicated teams designed to help startup companies with scaling. If you’re an established organization, even better—there’s no shortage of ways to keep your company relevant, especially when there’s money to be made.
A Virtual CFO can create fundraising strategies aligned with your business objectives. This includes how they help develop a pitch that fits your investors’ right tone of voice. Creating a compelling narrative can differentiate between scoring a new business partner and being left unanswered.
Business operations
Beyond the large-scale corporate needs that require attention, outsourced CFO services are also quite convenient for running your day-to-day business activities. If you want to create a more optimized structure, implement accountability, and create milestones that will enable your business to achieve its goals, you can get some expert financial advice to help.
Strategic business planning
Having an idea for the future in your head is one thing, but creating actionable steps is an entirely different skill. A CFO advisory firm has the tools to bring those ideas to life in a sustainable way. If you’re averse to unnecessary risks, you can rest assured that the business plan you’re working with is purely designed for your growth in every single detail.
Budgeting and cash flow management
Budgeting is a crucial aspect of running a successful business. With a solid budget and planning structure, you can create an atmosphere that actively encourages development for your company.
Effective cash flow management involves the use of forecasting to determine cash flow, identify potential areas for cash shortfalls, and develop strategic ways to mitigate any problems along the way. In other words, you may find yourself negotiating with suppliers based on advice from your Virtual CFO. Be sure to closely follow this advice, as it can be immensely helpful for your success.
With a proactive approach to cash flow management, you can take advantage of new opportunities after freeing up resources to channel your efforts towards expansion.
Market research and analysis
With enough data gathered by the Virtual CFO outsourced by your company, you can gain valuable insight into potential customers, competition and current market trends. This helps with the decision-making process because you can know the suitable campaigns to pursue, pricing strategies to employ and other ways to expand your business strategies.
How Odyssey Advisors can be your perfect CFO
A boutique advisory firm, Odyssey Advisors, is precisely what your organization needs to upgrade its financial status. The firm is designed to provide multiple key roles within a single service. As an outsourced financial controller, you can get valuable information such as accounting, structure reviews, super funds and other relevant services.
The Odyssey Advisors group is also dedicated to helping startups get a good tow into the limelight. Their clientele includes professional businesses with years of experience, family businesses, legal practitioners and more.
With these experts by your side, you’ll be able to clearly voice out your company’s objectives to the world and properly drive forward with those principles towards financial sustainability.
Final thoughts
A Virtual CFO is the go-to financial professional for any organization looking to focus on the bigger picture. These services are exceptional for businesses that want to take things to a new level. Whether this means raising capital or transitioning into a sale, it’s much more feasible to do so in a financially savvy way.
Beyond the financial valuation of your business, a Virtual CFO is also crucial for creating a better business environment thanks to their intelligent business advisory services. Contact Odyssey Advisors today for more help discussing your business’s needs!
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