Big businesses grow their profitability and cash flows year-on-year. Big businesses also take more risks and create long-term value for their stakeholders.
On the contrary, small-and-medium-sized business (SME’s) remain small, its profitability and cash flows barely grow. SME’s are also risk-averse and simply just survive year after year. In addition, most SME’s do not survive beyond 5 years, as per empirical studies.
The reason for the differences in performances is no secret. Big businesses know what it takes to grow profitability, cash flows, revenues and market share. Big businesses know how to look for more opportunities and take advantage of such opportunities. Big businesses understand business risks and how to mitigate such risks. Big businesses know how to develop competitive advantageous. Big businesses know how to build strong and resilient operations, raise funding, build brand value, create shareholder and sustainable long-term value.
Skilled resources as a source to create growth and competitive advantage
In order to achieve these business and financial goals, big businesses attract, develop and retain talented employees with excellent skills and depth. Talented and skilled employees are the single most important resource in improving business performances, accelerating growth and creating long-term value. Big businesses also pay these employees good remuneration and benefits, continuously train, develop, mentor and coach them. However, there is a chronic shortage of talented and skilled employees in the labour market. Businesses including the public sector and Government compete aggressively for these scarce skills. Therefore, big businesses develop and implement innovative and attractive employee value propositions in order to attract, motivate, develop and retain talented and skilled employees. Such organisations spend huge amounts and use vast resources on such employees in order to create excellent working conditions and employment benefits.
SME’s, on the contrary, cannot afford to attract, develop and retain skilled and talented employees or are unwilling to remunerate such employees adequately. Moreover, SME’s have blind spots with regard to the matters and competencies required to improve performances, accelerate growth and create long-term value.
Use of an outsourced CFO
In order to obviate these challengers, SME’s must appoint skilled people on its teams or appoint professional accountants and trusted business and financial advisors on a contractual basis to fill the gaps. For example, SME’s can obtain the services of an outsourced CFO that perform similar functions as that of a full-time CFO. An outsourced CFO also advises on matters of finance, risks, strategy, operations, performance, governance, compliance and acquisitions. An outsourced CFO can transform any organisation that just survives and put it on a growth trajectory.
Click here to learn more about our value adding outsourced CFO services.
Other features of an outsourced CFO
Another feature of CFO outsourcing services is that it is also used by corporates and other big businesses. State-owned entities, government departments, municipalities and NGO’s can also make use of the flexibility and cost-effectiveness of outsourced CFO’s. These organisations use the services in cases where a CFO is on leave or has resigned and there are not suitable people internally to fill the vacancy. Some organisations use the services to assist the current CFO to manage and implement major projects, turnaround the finance function, perform financial analysis and planning, etc. An outsourced CFO can also complement an existing CFO in cases when he/she lacks specific competencies and skills.
Cost of using an outsourced CFO
An outsourced CFO comes at a fraction of the cost of a full-time CFO. For example, an outsourced CFO can work 3 days a week, 1 day a week or any number of days, depending on the requirements of the business.
About Bethanie Management Consulting
Bethanie Management Consulting are professional accountants and trusted business and financial advisors. The firm enables businesses to improve performances, accelerate growth and create sustainable long-term value. The firm provides a wide range of innovative, value adding services that assist businesses and SME’s to win in the market place and create long-term value. Bethanie Management Consulting specialises in accounting, finance and risk management, taxation, business and management advisory such as business turnarounds, restructuring, workouts, business improvement and growth advisory, financial due diligence, valuations and deal structuring.
Provider of outsourced CFO services
Bethanie Management Consulting also specialises in the outsourcing of experienced chief financial officers, financial managers and project accountants. Our highly experienced team, which are seasoned business and financial advisors and professional accountants registered with The SA Institute of Chartered Accountants, will find a perfect match for clients in terms of skills and personality to suit any unique business requirement. We separate the men from the boys, wheat from the chaff to ensure the outsourced finance professionals hit the ground running.
You may download our business profile by clicking here.
Contact us
Please call us at 011 042 9768 or 072 296 1281 (Virgil). Or chat to us on WhatsApp. You can also email us at virgil@bethanieconsulting.co.za. Or you may contact us by completing our online form for a call back.
For more information on how to grow SME’s like a big business, visit our blog at https://www.bethanieconsulting.co.za/blog