Creating High-Performance Teams; How To Identify the Perfect ‘Startup Finance Pro'
No one ever said that the role of a startup CEO or director was easy – nor that it followed a set job description. Often the finance function for many startups is originally performed by the founder(s) and as the company grows and the functions become more complex and technical, it becomes apparent that an experienced finance professional or team is required.
For many startups, building a finance function may take a back seat to driving revenues and sales; however, bringing in this finance expertise as soon as possible to manage cash flow and identify future funding opportunities can play a critical role in helping young businesses grow and scale.
What are the main finance priorities for a startup?
Pre-IPO and during various funding rounds, it can feel like everything is critical – particularly when it comes to finance. You need to prove you have a solid base of cash flow, have enough insight to support business growth for the future, have the correct technology in place to produce good data, and have everything above board in terms of compliance and audit.
On top of this, even post-IPO, businesses need to be able to drive further data for accurate and in-depth analysis for business decision making. Financial modelling and forecasting should form integral parts of your finance functions at this point as you look to scale up the business.
Building a startup finance team, where to start?
Every startup has its own priorities that will affect how they develop their finance function. For startup founder(s) or CEOs who value forward-thinking strategies, engaging an interim VP of Finance to support key decision making while building out the more operational accounting functions would be a good place to start. This may involve hiring a more mid-level accountant to manage the day-to-day activities and leverage required senior-level skills and experience through interim resources.
For those looking to build a strong business plan to secure investor backing and capital, hiring an internal audit professional who can handle stocks, controls and testing would be a sound strategy.
When to hire a CFO:
Often, startups will look to hire a Chief Financial Officer (CFO) before they’ve scoped out the requirements of their finance team. Doing so, however, could result in extraneous or ill-matched hires that don’t suit the actual needs of the business. There are benefits and drawbacks to hiring a CFO before you’ve scoped out your finance team but speaking to an executive recruiter can help you weigh up your options and choose a solution that matches your requirements.
At Hoxton Circle, we work with startups to identify current and future hiring needs, providing a combination of permanent and interim hires to make sure that your team is efficient, cost effective and most importantly, fit-for-purpose.
Should you only hire people with previous startup experience?
While previous work at a startup can be a good indication of a person’s adaptability and multitasking skills, this can also be gained from working in larger organizations. Where it is advantageous, however, is in identifying and fixing internal or material weaknesses within an organization.
Ultimately, a can-do attitude, a willingness to learn and solid finance and accounting experience should prove to be just as invaluable to a startup looking to scale up and expand their initial finance functions as someone with startup-specific experience.
If you are looking for bespoke advice on how to create an accounting, finance, and strategic operations team that is tailor-made to suit your needs, our team of dedicated executive recruiters can help you build a full-time or interim team designed for success. By putting people first, we can scope out your requirements and source the right talent, ensuring efficient onboarding and sound results.
