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If you ever want to be a CFO you'll need to learn - "How to create a finance team from nothing" This past week I posted about how to do exactly that. I wrote about: The tech, the team, the job. Building finance from scratch. The biggest thing you can do to have an impact. Everything you will need to set up as the first finance hire. The most underrated part of a successful business. What to do if you are waiting to hire your first finance person. The importance of emphasizing opex over revenue in the early days. The one tool you’ll need to be effective when starting out. And the difference between finance at a startup and traditional finance careers. Next week I am going to talk about how to work with other teams as a startup CFO. …probably the most important part of the role as the business grows… - - - Hey, I’m Jason. I’ve been doing finance for startups for 15+ years now. Have seen it all. This month I am trying something new with my content. I am creating a series on “How to run finance at a startup.” This past week was all about building a finance team from scratch. Next week is about how to work with other teams as a startup CFO.

A common career path in #Finance is to go from #2 in Finance at a big company to the #1 Finance role at a company that is smaller. To clarify, that's like going from a $900m company to a $300m company. Going from a $900m to a $30m company is considered a big drop. Some may decide they can take the risk and go to a startup. Consider your options realistically as you pursue CFO. If you're at this point in your career, you should have a developed sense of risk vs reward. #strategy

A popular misconception founders have is by hiring a CFO, all their financial woes will be solved. What you're doing is throwing money at a problem. This is not a wise train of thought given startups have limited resources. CFOs are expensive A CFO is the second most expensive hire for a startup (the CEO is number one). It's not only a high salary. There are also benefits that go along with a senior hire such as employee share options. A CFO isn't a one-man band As a senior hire, a CFO is going to need a support team. At the least, an analyst and an accountant. That's just for starters. This means additional costs and complexity for your business. It's also overhead which means your sales have to work harder. Premature Hiring The greatest value a CFO can bring lies in strategic decision-making. Less so day-to-day operations. Basic financial operations can be handled by the founders or an accountant. If you hire too early, then you're wasting the talents of a CFO. More importantly, you're wasting money. A fractional CFO can be a good solution Full-time isn't the only way to hire a CFO. There are many fractional CFOs (*cough*) who can be employed on a part-time or project basis. This is the best of both worlds. You get the benefits of a CFO when needed and at a lower cost. What's not to like? A CFO can bring fantastic value to a startup at the right stage of maturity. Hence, it's important to consider what are your needs and circumstances before deciding to hire one. +++++ P.S. Follow me for daily insights on finance, entrepreneurship, SaaS, leadership, and random thoughts #finance #financematters #cfo #fractionalcfo #entrepreneurship #saas #founders

What do you look for when hiring a finance leader or CFO? Several articles throughout 2023 have touted CFOs being the hottest or most in-demand job in the market, especially for startups, but not all finance leaders are equal and there's no one path to becoming one We list down in this week's #BuilttoLastHandbook post three foundational characteristics of a startup finance leader: 1️⃣ Thought leader and strategic partner to the CEO. On one hand, someone who can bring reporting-driven perspective to CEO decision-making but at the same time someone the CEO can trust. 2️⃣ Forward looking. In other words CFO = Chief Future Officer. Someone who can translate numbers and goals today into growth in the next 2, 3 years or more. A concrete example is being able to map out funding allocation for growth. 3️⃣ Critical thinker. Someone who understands what the business really needs, especially in terms of spending. What kind of burn will actually result in growth? And while it's valuable to have a finance leader that has these dispositions, these should also trickle down to everyone in the finance function as well. What do these characteristics mean for the kinds of backgrounds or profiles (IB, operator, Big 4 alumni, etc.) to look out for? Or know someone who has all these? What other mindsets should finance leaders have, especially when working in startups? Insights adapted from CFO-led sessions with Insignia Ventures Academy's StartCFO program for financial professionals, now ongoing! #hiring #finance #CFO #jobs

Why It's Never Too Early to Hire a CFO? When working with early-stage startups, it often surprises me that many do not have a CFO. Some may feel that at those earlier stages, hiring a CFO is an ‘overkill’. 𝗛𝗼𝘄𝗲𝘃𝗲𝗿, 𝘁𝗵𝗲𝗿𝗲 𝗮𝗿𝗲 𝗺𝗮𝗻𝘆 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝘄𝗵𝘆 𝗵𝗶𝗿𝗶𝗻𝗴 𝗮 𝗖𝗙𝗢 𝗶𝘀 𝗲𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹 𝗲𝗮𝗿𝗹𝘆 𝗼𝗻. 𝗡𝗼𝘁𝗲: You do not have to hire a full-time CFO, there are amazing fractional CFOs as well who can provide the financial expertise and strategic guidance your startup needs. 📊 𝗦𝗽𝗼𝘁𝘁𝗶𝗻𝗴 𝗣𝗿𝗼𝗯𝗹𝗲𝗺𝘀 𝗘𝗮𝗿𝗹𝘆: Hiring a CFO early allows you to spot gaps in your startups financial model before they grow into bigger issues. 📊 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗚𝘂𝗶𝗱𝗮𝗻𝗰𝗲: A CFO provides strategic financial guidance to a company, helping founders make informed decisions that align with the goals of the business. 📊 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗧𝗿𝗮𝗰𝗸𝗶𝗻𝗴 & 𝗢𝘃𝗲𝗿𝘀𝗶𝗴𝗵𝘁: They analyze financial data, identify trends, and offer insights to drive growth and most of all to help mitigate risks. All these tasks can be tough to carry out by the founder or any other team member of a startup who doesn’t have the relevant background or experience 📊 𝗘𝘅𝗽𝗲𝗿𝘁𝗶𝘀𝗲 𝗕𝗲𝘆𝗼𝗻𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗲: A true CFO is an asset beyond just financial discipline.       🔷 They can help ensure focus on your vision, motivation, and future self. 🔷 They can dive into business challenges beyond finance and accounting. 🔷 They can provide clarity, options, and follow-through using their experience and data analysis mastery. Ideally, it's never too early to hire a CFO, but it's definitely high time to bring one on board when your startup exceeds one million dollars in annual revenue or when it receives funding from private investors. 𝗡𝗼𝘁𝗲: As mentioned earlier, early-stage startups can consider hiring fractional CFOs as well if hiring a full-time CFO is not yet feasible. Do you think hiring a CFO (or at least a fractional CFO) early on is a good bet for a startup? Or a startup should wait until they have completed at least one funding round? Let me know your thoughts in the comments. 

How to hire the right CFO for your scaleup: ❌ Avoid: A bureaucratic CFO from a mature company. Hire: An agile and ambitious CFO who thrives on uncertainty ❌ Avoid: An aloof, poor communicator who stays on the sidelines. Hire: An active and curious team player and leader ❌ Avoid: A diffident CFO who leans too heavily on a CEO. Hire: A savvy, self-assured CFO who inspires confidence and trust ❌ Avoid: A CFO who thrives on details and processes over analytics. Hire: A CFO with strong analytical skills and a numbers mindset ❌ Avoid: A CFO who thinks they (must) know it all. Hire: A CFO who knows their strengths and understands their limits  ❌ Avoid: A CFO who sees compliance as a waste of time. Hire: A CFO who prioritises compliance  https://lnkd.in/eaHJcZwG

Are you a seasoned startup CFO with an affinity for high-growth, tech companies? 🚀 I'm looking to network with CFOs that have led the finance function with early-stage, high-growth technology organizations and interested in full-time, fractional opportunities. If you've previously considered this scope of work, now is your chance! I'm supporting a CFO advisory firm that partners with some of the world's most successful growth companies. They are expanding rapidly so I’m looking to make introductions to their founder with those interested in learning more! Here’s a bit more info: Ideal Experience Profile: - Proven CFO leadership with early-stage tech or media companies ($5M-$50M in revenues) - Previous background in investment banking or public accounting is preferred - Ready to dive into fractional work now or in the near future 🌟 What's In It For You? - 💻 Remote Flexibility: Enjoy the freedom to work remotely. - 🌐 Expand Your Network & Experience: Collaborate with high-profile companies, spanning Seed to Series A-C. - ⚖️ Work-Life Balance: Redefine your schedule without compromising earning potential and avoid the stress of a traditional CFO seat! Message or email me at cshouse@lucasjamestalent.com. Feel free to tag or share this post with someone who might be interested! 🔍 #CFOOpportunity #fractionalcfo #startupfinance

"I am looking to join a start-up / scale-up business" 🚀 Is a phrase I frequently hear when speaking to finance professionals. The start-up world can be really rewarding and exciting, however I wanted to provide some context as to what you can expect when taking the plunge and joining a start up. ~Small Finance Team~ Naturally when joining a smaller business, resources are limited in comparison to an established organisation. This brings challenges but also some excellent opportunities. Being the number one in finance you could be tasked with some transactional duties ie. AP, AR, invoicing and credit control. For some senior finance candidates this is an area they look to move away from. On the flip side, there's excellent potential to partner with the founders/board on the strategic finance side of things. ~Finance Processes~ Early stage companies often do not have established financial controls and processes in place. Initially, a key part of the role will involve improving the current controls & designing new processes for the business. If you are looking for a role whereby it is BAU from the word go, joining a start-up may not be the move for you. However, if you are excited by the potential to "make the role your own" , develop a finance team, build out processes and get involved in the high level strategic stuff - joining a start-up can offer you all of this. ~Career Opportunities~ A key difference between a well-established organisation and a start-up can be the career trajectories. When joining a fast-growing business a lot of the time candidates receive some form of equity / share options. This can be highly motivating for finance professionals to perform and drive the business towards it's goals. On the other hand promotional jumps may not be as defined and clear cut. Larger companies can offer set promotional targets for career development but often do not have the equity / share options benefit. All in all, joining a start-up/scale can be incredibly rewarding both from a job satisfaction and financial standpoint, however there is a lot to consider when deciding if it is the route for you! At Radley Green, we are lucky to work with some amazing fast-growing businesses in London so if you are keen to have a conversation with me or the team feel free to reach out. #startup #scaleup #recruitment

A popular misconception founders have is by hiring a CFO, all their financial woes will be solved. What you're doing is throwing money at a problem. This is not a wise train of thought given startups have limited resources. CFOs are expensive A CFO is the second most expensive hire for a startup (the CEO is number one). It's not only a high salary. There are also benefits that go along with a senior hire such as employee share options. A CFO isn't a one-man band As a senior hire, a CFO is going to need a support team. At the least, an analyst and an accountant. That's just for starters. This means additional costs and complexity for your business. It's also overhead which means your sales have to work harder. Premature Hiring The greatest value a CFO can bring lies in strategic decision-making. Less so day-to-day operations. Basic financial operations can be handled by the founders or an accountant. If you hire too early, then you're wasting the talents of a CFO. More importantly, you're wasting money. A fractional CFO can be a good solution Full-time isn't the only way to hire a CFO. There are many fractional CFOs (*cough*) who can be employed on a part-time or project basis. This is the best of both worlds. You get the benefits of a CFO when needed and at a lower cost. What's not to like? A CFO can bring fantastic value to a startup at the right stage of maturity. Hence, it's important to consider what are your needs and circumstances before deciding to hire one. +++++ P.S. Follow me for daily insights on finance, entrepreneurship, SaaS, leadership, and random thoughts #finance #financematters #cfo #fractionalcfo #entrepreneurship #saas #founders

Industry Sector 💻🧪💽🍴🏧 What you need to consider when looking to hire your first CFO?👇 ✅ Revenue Model 👉 Industry sectors such as Marketplaces, E-commerce, Consumer Products, Retail, FinTech, some portion of SaaS ventures are likely to be international, high volume, low value transactional businesses with important FinOps processes to consider. Meaning a hands-on Financial Controller / Head of Finance might be needed before you hire a CFO and if you need a CFO to deliver on key milestones then they will need support below to nail Financial Operations & Reporting. 👉 Whereas some industries such as AI, HealthTech, BioTech, AgriTech, InsurTech, FinTech with have significant R&D, Regulatory Approval or Product Development milestones to hit before launching let alone getting paying customers. Therefore there will be high stakes decisions to be made regarding fundraising, capital allocation and strategic planning that will require an experienced VP Finance or CFO hire before building out a team when needed. ✅ Environment / Culture 👉 Without wanting to generalise too much the CEO and other Founders / C-Suite peers will typically come from a background related to the industry sector in question and naturally play a leading role in the environment of the business. For instance a BioTech venture will tend to have a highly academic, scienced based senior leadership team meaning a certain type of CFO character will excel versus the type of CFO who will make a success within a sales led D2C E-commerce brand. Any further thoughts from industry experts? 🤔