How can a Finance Director help your business?
February 6, 2017
Here, Associate Sue Weighell of Delta Solutions explains the importance of having someone to keep your numbers under control.
The business plan (or strategic plan) is the document that sets out the company’s strategic direction, its main operating and financial targets, the actions it will take to achieve those objectives, the new initiatives and investments planned, and their impact on the company’s performance. It is a living document, which can and should be referred to and amended periodically.
The development of a comprehensive, ‘living’ strategic business plan is critical for your company’s long term growth and stability. Businesses without a plan often operate in a more chaotic and disjointed way and make life hard for themselves. Everything stems from getting a robust plan in place and communicated out to the business. This is where you can bring in a part-time freelance finance director without the need to commit to a full-time employee
So how can a part-time FD help you?
- Gain a full understanding of the business and its operating procedures
- Agree the exit strategy
- Work through the existing strategic plan with the business owner and make necessary changes to build a plan which clarifies how the company’s objectives can be realistically achieved
- Develop a set of relevant KPIs (Key Performance Indicators) and a system which allows for regular (daily/weekly/monthly/annual) monitoring and reporting
- Agree milestones and break down the plan into annual and quarterly targets
- Agree delegation of authority to department heads to spread responsibility across the business and to free up the CEO/MD’s time
- Conduct a fresh SWOT (Strengths, Opportunities, Weaknesses, Threats) analysis bringing the plan up to date
- Create feedback route so that strategic goals are shared regularly with staff
- Carry out a full competitor analysis to understand in detail what is and isn’t working in the market
- Work with the senior team to ensure individual department goals are aligned with the big picture strategy
- Identify key players in the business
- Identify skill gaps in the business
- Identify key outsource suppliers/advisors and in particular corporate finance contact
- Identify key metrics for determining what the future course of the business should look like