One-off activities (projects) require sufficient resourcing to achieve acceptable outcomes
It is rare that an SME businesses have spare internal resource capacity to allocate for managing one-off activities. The internal resources allocated to these projects are usually busy. The result is usually that either the project is under managed or the resource’s regular responsibilities are neglected. It can also result in staff becoming disheartened as they struggle with overwhelming workloads. This is where a consulting CFO can help just for the term of the project.
Capex
Whether you’re investing in some new equipment or building a new factory, it’s important to understand what return on investment you are targeting and what this will mean to your business performance.
Once you have a thorough understanding of the cost/return relationship, the goal is to achieve it. A consulting CFO can undertake the analysis and the project reporting to ensure the plan is implemented and the return is achieved.
New business lines
This is a critical risk activity for many businesses. The lure of increased business often blinds management to the costs and the demands on limited resources.
A consulting CFO can assist you to plan the process in detail, analyse the resource requirements and set up a strategic implementation plan to ensure the new business line is rolled out profitably.
Acquisitions
Aquisitions are another high-risk business undertaking. Done well, acquisitions can be company-making. Done poorly, acquisitions can destroy a business.
A consulting CFO can assist you to properly plan the acquisition, set in place the financial targets (income and costs) and report on the implementation of the project.