Remy Verhoeven’s Post

Top 5 Early Warning Signals Your Business Might Need a Fractional CFO Feeling like your business numbers are stuck in a cave while you’re trying to navigate the real world? Here’s your Friday reality check (don’t worry, we’ll keep it Skibidi light). 1️⃣ Timely Reporting If you’re not finding out how last month went until the 20th of ‘this’ month, that’s not “fashionably late” – that’s just ‘late-late’. Time to call in someone who can bring your reporting game into the 21st century. 2️⃣ Business Partnering Your current team is great at post-mortems (aka, telling you what went wrong ‘after’ it’s gone wrong). But where’s the partner who can Skibidi your business forward—doing ROI analyses, cost-benefit breakdowns, and helping you weigh your options in real time? 3️⃣ Goal Setting Your vision is inspiring, but without a North Star to translate it into actionable business and financial goals, you’re just doing the cha-cha in circles. A Fractional CFO can rally the troops and point them in the right direction (bonus: no glittery compasses required). 4️⃣ KPIs – What Gets Measured Gets Managed You know you need goals, but what about ‘relevant’ ones? It’s not just about dollars and cents—let’s talk customer satisfaction, internal processes, and growth opportunities. Think Balanced Scorecard, not just spreadsheets. 5️⃣ Cashflow is King Your business is profitable, but you’re still dodging vendor calls like you owe them concert tickets. Profit is nice, but cash flow keeps the doors open. Someone needs to make sure you’re not ‘just surviving’ - but thriving. (Bonus) Checks and Balances Processes that run like a tight ship > relying on superhero employees who never take a day off. A Fractional CFO builds systems with proper delegation, segregation of duties, and fraud prevention so your business doesn’t hit the skibidi skid. Not even getting into pricing strategies, waste elimination, working capital optimization, or the dashboards that make CEOs happy—this is just scratching the surface of what a Fractional CFO can do. Hope that wasn’t ‘too heavy for a Friday’! Syed Irfan Bilal Ahmad Tom Schultz Brain Expansion Group The CFO Leadership Council The CFO Centre Canada Let me know in Comments what I might be missing? …………………………………… P.S. I am a Fractional CFO helping businesses make informed financial decisions with peace of mind. Please contact me at [email protected] if I can be of any help. #FractionalCFO #BusinessSuperhero #FinanceExpert #CashFlowManagement #FinancialLeadership #BusinessGrowth #Entrepreneurship #FinancialFreedom #VisionToAction #KPIManagement #StrategicPlanning #CashIsKing #BusinessGoals #FutureFocused

"If an early-stage company has not already engaged a fractional CFO, the company is late in doing so." Wise words from Steven Wasserman, Consulting CFO and Senior Lecturer in the Finance Department at Bentley University. Take a look at his piece in Forbes about the key five reasons why businesses should be consulting a CFO as soon as possible. https://lnkd.in/d6DeWWf9 #fCFO #FractionalCFO #ScaleUpBusiness

While every CFO has their own style and way of working, there are generally two types of virtual CFOs. Which one you choose will make a big difference in your business.

🎙️ New Episode of CFO Talk - The Perils of Ignoring the Income Trap with Joe Connors 🎙️ https://lnkd.in/gkdaXBmQ What a pleasure to 👏🏼 welcome Joe back to CFO TALK. He is one of our CFO Ed Talk Pioneers; a group of business leaders who helped launch CFO.University with great lessons for finance leaders. Joe's first CFO Talk, titled Do You Know What the Income Trap Is?, introduced our community to the Income Trap, a malady whose symptoms include difficulty raising capital, higher borrowing costs and, if not treated, business decline or worse. (find the 🔗 link to Do You Know What the Income Trap Is? in the first comment box below) In his sequel, ⚡ The Perils of Ignoring the Income Trap, Joe expands on the causes and remedies for the Income Trap and its profound impact on corporate financial sustainability. 🔍 Joe uses compelling insights from both personal experiences and major corporate scenarios, Boeing's for example, to discuss the equilibrium that must exist between the income statement and balance sheet for sound business management. Here are 3 **key takeaways** you don't want to miss: 1. **Balance is Critical**: Learn why maintaining a healthy tension between liquidity and financial reserves is crucial for business resilience and strategic flexibility. 2. **The Importance of Forecasting**: Discover the essential strategies for accurate cash forecasting using the direct method, which can help uncover hidden financial challenges and opportunities. 3. **Strategic Reserve Management**: Joe details why managing your financial reserves actively can safeguard your company during economic downturns and leverage opportunities that arise. Don't let your business fall into the income trap by focusing merely on the speedometer (income statement) while neglecting the fuel gauge (balance sheet). Join Joe and me as we outline actionable strategies to navigate this challenge effectively. 🎧 Tune in to the latest episode of CFO TALKS and arm yourself with the knowledge to steer clear of the Income Trap. https://lnkd.in/gkdaXBmQ 📚 I am the Founder of and Chief Learning Officer at CFO.University 🏫 CFO.University is a professional development center for CFOs and aspiring CFOs. Our Mission:   Develop world changing finance leaders 🔔   To see more content ring the bell on my profile 🎬 Visit our CFO Talk video series with global experts transforming the role of the CFO, https://lnkd.in/gg6bdZx 📚 Learn about the Four Pillars of CFO Success here. https://lnkd.in/gJNV4q7 #CFO #CFOUniversity #CFOTalks #FinancePodcast # #IncomeTrap #FinancialLeadership #CashFlowManagement #CorporateFinance

I recently shared views on what is behind the high number of mid-cycle CFO changes we are currently seeing in PE-backed businesses. I also posited that new deal flow was likely to increase and in turn would prompt an even further increase in CFO search activity. This is playing out: In Q4 '23 UK HQ'd PE funds delivered 39 buyouts with an EV between £50m-£1bn. In Q1 '24 this increased by 72% to 67 deals. Increased deal flow, coupled with ongoing mid-cycle CFO changes, means the demand for PE-proven CFOs is very high. The CFO will be instrumental in delivering ambitious value creation plans so PE want “the best”; the jeopardy of getting it wrong is too high. However, one prerequisite remains constant: they want prior PE experience. Yet with fewer recent exits, there are fewer exit-experienced PE CFOs available at short notice. Demand for CFOs who have delivered an exit is outstripping supply. Other options for unearthing high quality CFOs do of course exist; for example, extended exit horizons and underwater equity can lead CFOs in this situation to be more open minded to a move. An illustration of this is the changing make-up of a Short List. 5+ years ago a Short List would have comprised approximately 75% CFOs with recent exit experience actively searching for their next role, and 25% CFOs mid-cycle. Today, these percentages are inverted. Selecting the correct CFO for a PE backed business is one of the more strategically critical hiring decisions that will be taken during a deal. Yet unexpected things like a surprise resignation, a CFO's gradual slide from OK performance to poor performance, the effects of stress and mental well-being can force the Board into making what is in effect a highly tactical decision to hire a new CFO. Even with the best commercial and operational strategies in place, it's people issues that catch Boards off guard. Couple this with today’s supply and demand imbalance of PE CFOs, and the importance of adopting a strategic approach to talent planning increases exponentially. An approach I've been exploring with investors is Relationship Recruiting. The essence of this is to adopt a preemptive approach to talent planning. This entails building the relationship between fund and CFO when there is no hiring need in the portfolio. It gives CFOs the the opportunity to get to know a fund, its investment themes, and its people. This can be done through events, round-table discussions or thought-leadership programs. It humanises the fund and elevates the brand for potential future CFO candidates - in short it differentiates. In a competitive market when high quality CFOs are considering 3 or 4 (at least!) new opportunities concurrently, the strength of a PE house’s brand is of equal importance to the brand of the portfolio company. Relationship Recruiting can differentiate a fund from talent-hungry competitors when that all important future hiring need arises. Thoughts welcomed as ever. Best Nick

Six ways to be an effective CFO. Which one is your favorite? CFOs have a complete list of priorities. They’re always busy, yet some make more progress than others. Some are even marked as value creators in the company. What is it that they do differently? According to McKinsey, there are six areas they focus on: 1️⃣ 𝗖𝗿𝘆𝘀𝘁𝗮𝗹𝗶𝘇𝗲 𝘆𝗼𝘂𝗿 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 They facilitate the company's strategy process. They identify, qualify, and quantify the choices a company can make. They employ a simple yet rigorous approach to strategy follow-up. 2️⃣ 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗕𝗶𝗴 𝗠𝗼𝘃𝗲𝘀 They support making bold and big moves as opposed to incremental change. They highlight where the company can make a significant difference vs. competitors. They ensure that sufficient resources are allocated to the Big Moves. 3️⃣ 𝗥𝗮𝗱𝗶𝗰𝗮𝗹𝗹𝘆 𝘀𝗶𝗺𝗽𝗹𝗶𝗳𝘆 They set clear roles and responsibilities in the finance function. They ensure that information and insight flows are connected to the strategy. They put themselves in the CEO’s shoes and run the company as such. 4️⃣ 𝗞𝗲𝗲𝗽 𝘂𝗽 𝘁𝗵𝗲 𝘁𝗲𝗺𝗽𝗼 They design management systems that facilitate efficient decision-making. They ensure effective and dynamic resource allocation. They have a standard playbook for driving and evaluating performance. 5️⃣ 𝗢𝘃𝗲𝗿𝗰𝗼𝗺𝗲 𝗰𝘂𝗹𝘁𝘂𝗿𝗮𝗹 𝗶𝗻𝗲𝗿𝘁𝗶𝗮 They focus on creating strategic progress. They don’t solve for consensus but the best strategic options. They adjust incentives so everyone is rewarded for company outperformance. 6️⃣ 𝗠𝗶𝗻𝗱 𝘆𝗼𝘂𝗿 𝗺𝗶𝗰𝗿𝗼𝗵𝗮𝗯𝗶𝘁𝘀 They’re experts at managing up to the CEO and the board. They’re crystal clear about their priorities. They set aside time for reflection to re-center on crucial goals. Being an effective CFO is something other than magic. ---------- There are tangible steps to take, as outlined here. Any finance professional can employ these six steps. Which steps do you follow today, and where can you improve? ---------- 📺 FinanceMaster on YouTube: https://bit.ly/4bSBut6 📢 Join our WhatsApp channel: https://bit.ly/3WWGOrc 👩🏫 Our LinkedIn Learning course: https://bit.ly/4a5fB9l 📻 FinanceMaster Podcast: https://bit.ly/3NLSt73 📄 FinanceMaster resources: https://lnkd.in/eC_zuCU4

Fractional CFOs do more than just help you run your books, check out this article from Forbes that details five benefits of working with a fractional CFO. Interested in learning more about DCA’s fractional CFO services? Schedule an introductory call for more information >>> https://lnkd.in/gdDtgYUv https://lnkd.in/g8KwPZ2B #partnership #forecasting

Becoming a successful Chief Financial Officer (CFO) in today’s competitive market requires a strategic approach and a blend of skills beyond traditional finance expertise. Here are some key priorities for aspiring CFOs: - Formulate a Unique Vision - Bolster Essential Skills - Take Professional Risks - Engage with the Board Passion for the role and continuous learning are essential. With the right mindset and proactive steps, one can navigate the path to becoming a successful CFO

Mastering the Role of CFO: The Essential Skills for Success - https://lnkd.in/d5PDGccb The question "What does it take to become a great CFO?" is a common one posed to Larry Chester, President of CFO Simplified. Whether you are an aspiring CFO or a business owner looking to hire one, understanding the key qualities that ensure success in this crucial role is paramount.

Is Your Business Facing Financial Crossroads? Strategic turnarounds require expert guidance.  In today's ever-changing market, even the most successful businesses can encounter challenges. But how do you navigate those rough patches and get back on track? An experienced CFO can be your secret weapon, but a full-time hire might not be an option. Enter Interim CFO services! This blog post dives deep into how temporary financial leadership can be the key to your turnaround success. Ready to learn more? Head over to our blog and discover the power of Interim CFOs!  https://lnkd.in/gY4iTqc7  #InterimCFO #FinancialTurnaround #BusinessStrategy