Too Small to Hire a CFO, Too Big to Forget about it

The importance of a good insight in what drives your sales, your costs, your profits is often underestimated. Common excuses are: “we are too small of a company to really think about a financial strategy”. Or: “we just started operations, it is impossible to estimate how much we are gonna sell!”. Well, this might all be very true, but also very short-sighted. Money is more then just counting your successes and failures on your bank account. It is able to create reference points and can be used as a measuring tool.

A good entrepreneur should know thyself. As a start-up, putting numbers in an excel sheet is not about getting the budget right at the end of the year. It is not a quiz question which you need to answer correctly to win the jack-pot. It is about understanding why the end-year results deviates from your budget. Measuring the gap, and determining which drivers influenced this gap; is all about understanding the big “WHY” question.

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