more-arw search

Startup CFOs Must Prepare For Worst, Expect Best

Startup CFOs Must Prepare For Worst, Expect Best

Often, established finance chiefs will look to take on the new challenge as the CFO of a startup business, a move that often requires these professionals to throw their traditional books out the window.

According to a recent Quora Q&A column with Michael Wolfe, the CEO of software service company ccLoop, by embracing the challenge of becoming a startup CFO and understanding the inevitable differences from prior experience, finance chiefs can beat our larger corporations for business.

One of the most important things for startup CFOs to consider, according to Wolfe, is that the best plan is not necessarily that which is most predictable, as predictable companies can go out of business quickly due to competition and other factors.

Additionally, CFOs at startups need to understand that their role should be focused on finding ways to effectively spend money, rather than looking to cut costs wherever possible, Wolfe explains.

"If you see your job as pushing for less spending vs. the rest of the team spending more, then resolve that misalignment," he says. "Don’t accept it as the 'CFO’s role.'"

According to Business Insider, a successful startup CFO also needs to be a trusted advisor to other executives within the company, particularly the CEO. Publicly, the finance chief needs to support the CEO at all times as well, in order to maintain a strong image for the startup.