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Discover leading insights from our finance experts at The Finance People. Use this financial advice to enhance your strategy, to overcome common financial challenges within SMEs, or to better understand key areas of finance for business. 

5 Tell Tale Signs You Need a Part-Time FD

2022 is here and many of us are reviewing our business objectives for the year ahead. With nearly 2 years of Covid-19, plus Brexit, the changing consumer journey, digitisation and more – many have held back from investing in business or even thinking about growth.

And for many smaller businesses, hiring an expert Financial Director (FD) can seem out of reach. Many view FDs as being out of budget, particularly if they have the level of experience desired. However, the part-time FD model is alive and thriving an enables smaller businesses the opportunity to leverage years of expertise for their smaller business, for a fraction of the budget.

In this article, we’ll explore the benefits of hiring a part-time FD, as well as the five key signs you’re ready to take that next step to help grow your business in 2022.

Benefits of Hiring a Part-Time FD

As a business owner, hiring a part-time Finance Director doesn’t just save you time and money – there are endless benefits to having this type of expert on board and helping drive your business forward. Here are some key benefits to consider:

  • They’ll provide experience-led strategy to help you take future growth steps

  • They can provide corporate governance

  • They can assist with relationship management (auditors, funders, HMRC)

  • They can assess overheads and costs associated with your business, signing off relevant investment

  • They can become an integral part of your board of directors

With the turn of the New Year, many business leaders are feeling more positive about the future of their business and are seeing light at the end of this very long tunnel. This leads many to ask the question – are we ready to take the next step and hire a part-time FD?

Should You Hire a Part-Time FD?

If you’re unsure whether its’ the right time to invest in a part-time FD, here are some key signs your business is calling for you to take that next step.

You have outlined your business objectives and know you need the guidance

The first, most obvious tell-tale sign is that your business objectives are demanding the expertise of an FD. An FD’s role within your organization is to work with senior executives to explore the financial health of the company and make data-driven decisions to help meet wider business objectives. In order to leverage the skills of an FD, you need to have established targets that your business is attempting to reach – and they shouldn’t be easy or modest.

You have budget and investment but you’re not 100% sure where it is best placed

A second key sign is having budget at your fingertips. You have budget to hire a part-time FD, as well as have the budget to invest in new areas for your business – and you need the guidance of an expert to help make those important decisions.

Even if you don’t have budget to invest elsewhere, hiring an FD can help you make the right business decisions to better manage your cash flow, raise finance and grow your organization.

Your business is driving enough demand and profits are growing

Another sign you’re ready to hire a part-time FD is that your business is in its ‘growth phase’ and profits are climbing. This is suggestive that your business is ready to scale, and a significant part of this process is hiring the right financial guidance to take your business in the right direction.

You want to improve cash flow management – or simply want to focus your own time elsewhere

Cash flow management becomes more and more complex as your business grows – and its therefore critical that you have an FD in place to manage this properly for you. Further, cash flow management is tiresome and can be a lot of responsibility for a business owner, whose time could be better spent elsewhere. If cash flow is becoming a problem, or is not a high priority, then it’s always best to invest in an expert who can manage it effectively.

Data management is becoming too difficult and complicated

Data is at the heart of a business and is key in making business decisions for years to come. Therefore, having an expert who can properly manage and analyse business data is of extremely high importance.

If data management is becoming too difficult/complicated, or it is starting to fall to the wayside as your business grows, then this is a strong sign you’re in need of a part-time FD to take care of reports and drive your business forward.

Get support from The Finance People

If you think it’s time to hire a part-time FD, don’t hold back. 2022 has become the year that many businesses are looking to take that next step – and the sooner you do so, the sooner you can begin accurately managing data, adjusting cash flow and driving your business forward.

At The Finance People, we align businesses with a part-time FD to suit their needs. Get in touch today to get started.

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