Building value in your company is a challenge. If it were easy then everyone would do it and everyone would be successful. The fact is that very few businesses actually build value. I think this happens because building value requires hard work. It also requires being systematic and it requires discipline, which is something that many businesses lack.
Most small, privately held businesses spend a great deal of their time working on bringing new sales into their business. These companies know that without sales their business will shrivel up and die.
I’m a big fan of renting a CFO versus owning a CFO in most companies. There are several reasons I believe this is a good idea. Among them are having your rent a CFO start moving your company from the usual tactical measurements to strategic ones that can dramatically drive the value of your company.
One of those strategic activities is in the realm of installing and measuring KPI’s in your company. A good rent a CFO should have a very strong skill set in developing KPI’s (key performance indicators) as well as putting together the drivers the make the KPI’s move. In fact, I think this is one of the most useful things a CFO can do for any company.