The role of an Experienced Finance Director (EFD) goes far beyond simply overseeing the finances of a business and helping to improve its financial position. It is a highly dynamic discipline that involves performing multiple roles, working both on and in the business. Immersing themselves in the business, the EFD has an opportunity to drive decisions and help formulate strategies to achieve the business owner’s objectives.
An experienced FD has a unique set of skills and therefore does not come cheaply, and few SMEs can afford to hire one as a result. A solution to the frustrating position of knowing that your business would benefit from the services of an EFD and not being able to afford one full-time, is to consider hiring one on a part-time basis.
How an experienced financial director will help
Companies have the option of hiring a full-time inexperienced FD for a lower cost than that of an EFD. However, a FD who is early in their career will not have the same breadth and depth of experience working with different businesses in multiple situations and is unlikely to have the commercial acumen needed to add real value. An EFD will have a higher level of expertise, a larger network of useful contacts and far more experience working with business owners to create sustainable success. An EFD will possess unique commercial insights and a range of transferrable skills across businesses and industries, allowing them to handle business critical situations, aid critical decisions and deliver positive outcomes.
The EFD will also bring an exceptional level of financial expertise, implementing a rigid financial reporting structure that provides full transparency of a company’s finances and overall performance. Based on the needs of the business, the EFD can conduct numerous activities including overseeing the preparation of financial accounts, controlling the annual budget, directing finance staff, streamlining processes and conducting financial analysis, such as ratio analysis. Entrusting an EFD with these responsibilities both adds value and relieves a large burden from the business owner, saving them time and allowing them to focus on core business activities.
Hiring a part-time FD is cheaper
In todays marketplace, a range of finance professionals are available and prepared to work by the day, and in some cases, on an hourly basis. Considering the full-time market rate for an experienced FD is £120,000+, plus bonuses, equity, and other benefits, smaller businesses simply cannot afford to employ one. Hiring a part-time EFD allows businesses to benefit from the expertise that they bring without breaking the bank.
You can expect an improved performance
Rather than solely focusing on how a business can improve its financial performance, EFDs directly contribute to the achievement of a business owner’s overall goals through the provision of bespoke strategic guidance that is based on unique financial insights. EFDs will look at a company’s financial accounts, identify trends, and spot anomalies which will allow them to recommend ways to control and cut costs, improving profitability. They can also conduct financial analysis, negotiate better prices with suppliers, provide strategic insights, and make concrete recommendations to help improve performance.
You will make better decisions
Over the years, business owners have come to expect more from EFDs and regularly seek their guidance. With an understanding of every department’s goals and performance, the EFD is well-positioned to help business owners make better decisions and achieve success in the future. As a result, EFDs have evolved into commercially-minded business leaders that act as strategic advisors who help make better decisions and shape business plans.
For example:
Can/should you diversify your product portfolio?
Can you identify and grow profitable areas of the business?
Should you invest in new technologies? What is the payback period?
How can you improve your current product and service offerings?
Should you expand to a new geographic location?
Is there a way to finance accelerated business growth?
Should you sell non-core parts of your business that have low profit margins?
You will achieve your business goals much faster
Planning for the future, the EFD will analyse trends and ratios and interpret them, and use these insights to formulate reliable financial forecasts. Understanding month-to-month and year-to-year financial accounts will help a business to control its costs and gain a clear picture of what could happen in the future and what the company’s growth might look like. These forecasts are an integral part of a business plan which provides a roadmap for the owner when determining the direction to take the company in order to achieve their overall goals. For instance, if they decide to sell the business, realistic forecasts based on historic trends will support any valuation negotiations to be had with potential buyers.
Why hire Dartcell?
When you partner with Dartcell, you will leverage the exceptional knowledge of an experienced FD on a part-time basis, for a fraction of the full-time cost. Specialising in the delivery of business growth and improvement, Dartcell will make a big difference in a short space of time, quickly improving your operational performance and aiding strategic planning. In addition to financial expertise, a Dartcell experienced FD will have developed large networks over years of experience working with different companies. This network of connections can be invaluable as it allows you to expand your own network giving you access to key contacts that might help your business.
If you are interested in the strategic guidance of a highly experienced FD, please contact us.