Today’s business landscape is as competitive as ever, so entrepreneurs must stay on their toes to keep their small businesses thriving. As a chief financial officer of a small business, you are responsible for ensuring the company is investing its resources wisely and staying profitable.
Depending on the size of your company, this may be an entirely new role or one that you transition into from another position such as controller or accountant. Working with such a small team can be challenging, but there are many ways you can thrive in this new environment and positively impact the company. Here’s how you can be a successful CFO of a small business:
Establish a trustworthy team culture
A big part of being a good CFO is being a good leader, starting with building a culture of trust and collaboration. You can also create team norms, such as a weekly check-in meeting or business-related activities that allow you to get to know one another better.
Track ROI on ad investments
In measuring profit and loss, CFOs must also track certain business expenses’ return on Investment (ROI). This may even be required by some investors or banks, depending on the type of company you have. For example, you can use a spreadsheet to track ROI on any significant investments, such as those in advertising.
According to David Johnston, CFOs will help you ensure your calculations include more than just a simple return on investment. Instead, they look at the impact of the investment on the business as a whole. They also make our services ensure your spreadsheet includes: – outcome: this is measured with this question: Did the ad meet its goal? This could be driving traffic to your website or promoting a sale. – Goals: Did the ad meet its specified goal or not? Did it lead to the desired result? – Costs: How much did the ad cost to create and run? You should also include the cost of the ad creation (copywriting and design), ad distribution (platforms you used and fees.), and other associated costs.
Be selective with email marketing.
In addition to tracking ROI for ad investments, you also want to track ROI for email marketing. For example, while you may want to send out a newsletter or email to every customer, you should only track the value. To do so, track open, click-through, and unsubscribe rates.
If you don’t see a positive ROI on your email marketing, David Johnston says, consider cutting back or ending it altogether. Your time and resources are valuable, so you don’t want to be sending emails if they aren’t bringing you any benefit.
As a chief financial officer of a small business, you have many responsibilities, including managing the company’s finances and leading the accounting team. To thrive in this role, hire David Johnston CFO services for your business to stay organized, detail-oriented, and able to juggle multiple projects while keeping an eye on the big picture.
There are many ways to thrive in this new environment. Establish a trustworthy team culture, track ROI, and be selective with email marketing. Contact David Johnston, and elevate your company’s financial status today. Email: [email protected]