The session will bring together marketing leads from the rest of the cohort to discuss when and how to scale your finance team, managing your cash flow and forecasting as you scale. It will also be an opportunity to create a community of like-minded Finance Leads who can support you as you scale and share best practices.
Scale Coaches:
Session Takeaways:
SCALING AS A FINANCE LEAD
with Neil Alexander, Nutmeg
Structuring a finance team for scale:
How to structure a finance team for scale
When thinking about structuring a finance team for scale, it’s important to be sure on what you want the finance team to deliver and what goals you want to achieve. Understanding which core specialist skills are needed is key, as there will be some functions that will be outsourced. A great place to start is Integrating your finance function into the whole business to avoid Finance as a Function (FaaF) - this gives you a great opportunity to see every aspect of the business and learn more.
Process is crucial
Good process is everything for scale. It’s important to think about what data you want to gather and ensure it is systematic so that it is easier to make transitions between systems in the future. Keeping the long term vision for your finance function in mind to create those processes will make a big difference, especially keeping a great accounts payable and receivable process.
Employing the right people for a high functional team
Key hires for scale ups
Forecasting in a scale up:
Data and processes need to be set up correctly or forecasting will become a lot harder. Think about what data sets you need to collect and understand the economics of your business, for example look at the Representation of contribution margin or Break Even analysis.
Ask questions such as
Consider data such as sales pipeline, open purchase orders, actual sales, and actual costs. This can all be done on excel and then moved into a different system at a later date.
Managing cash flow
Cash flow needs to be managed very carefully so don’t be afraid to look longer term all the time, even a few years ahead. Since it involves getting down to huge levels of detail, it will take a lot of time, effort and testing. Work across the business so that all teams can go through their actuals and feed into the model on a monthly basis, then provide estimates in 3 month increments. It’s also beneficial to coach the whole business on being better at managing cash i.e. it’s not just about the price all the time, think about payment terms too.
Developing as a CFO
Be the role model
Utilise all the qualities mentioned for a high functioning finance team such as creativity, common sense, and problem solving. Be brutally honest with yourself about what your weaknesses are, knowing what you don't know will help you to work towards either filling your knowledge gaps of leaving certain things with specialists.
Be a yes person
If something needs to be done, put your hands up and do it as it will give you great experience and allows you to challenge yourself. It broadens your experience and gives a deeper understanding of how a business works.
Be the voice of reason
Sit back and listen, then ask the questions. Be the mediator and work in the business to bring it all together, engage that EQ.
Jack of all trades
As mentioned, a lot of things fall to the finance team, this gives you an insight of other areas of the business.
Relationships are crucial
Invest your time to build those relationships as you need to communicate clearly and engage. Talk to the senior people and everyone else as much as you can since you only get qualitative data by talking to others .
Shop window
It is critical to ensure that management reports are timely and accurate, as well as professionally presented.
Never assume
Don't be afraid to ask questions and to get to the truth of the matter.
Don't blag it
Investors will spot it and you will be caught out.
Integrity
This is a superpower as a finance person, you need to be trustworthy.
Don't DIY
Don't do everything yourself as it is not a sustainable long term plan. Hire great people to work with you that can fill in the gaps of your experience.
Say no
Need to be comfortable to say no, but explain why and suggest alternatives.
Pick your CEO
It won't work if you have completely contrasting and different styles, interview the CEO and much as they interview you
You are always going to find dead bodies!
Look for them immediately and dig them out as soon as possible, there will be some.
BREAKOUT DISCUSSIONS
1) How is your finance team currently structured? How will this change over time?
Think about when the right time to recruit is, not only at C suite level but a lower level that can support you in your day-to-day so that you can focus on other priorities.
Outsourcing can only get you so far, think about in house sooner rather than later
2) What tools/technologies do you use as a Finance Lead?
3) How is COVID-19 affecting you as a Finance Lead? How’re you managing the uncertainty?