When to Consider Hiring a Temporary CFO

By: Jeff Wright, Senior Vice President, Hennessey Capital

In my 27 years of asset-based lending and commercial loan workout experience, I have consulted with many small businesses that know how to manufacture a product but have difficulty managing the financial aspect of their business. This includes companies that are experiencing significant challenges as well as growth-oriented companies. Many rely on trusted advisors like their CPA, banker, or attorney to provide assistance on financial matters affecting their business. However, these key advisors are often handling many clients, or may not have experience in your industry to provide targeted guidance on some of the complexities of the situation.  When this is the case, a temporary CFO can provide invaluable insight and expertise in evaluating and managing your business finances. Owners can draw on the CFO’s experience to fill skills sets management does not possess. This frees up management to address operational issues and marketing initiatives. Owners, however, must be willing to give up some control.

It goes without saying that small businesses need strong financial support in place. A temporary CFO with experience in the industry can provide invaluable support in the strategic planning, budgeting, and cost control for a small business as they grow. Their objective opinion can be helpful when considering taking on a new project, investing in new equipment, or evaluating overhead expense to improve cash flow. A temporary CFO’s experience can also be used as a resource when discussing financing options with a lender or suppliers, and in dealing with customers. They can also implement financial systems to monitor the financial performance of the company and provide timely reporting to help management make educated business decisions.

The primary role of a temporary CFO is to manage the cash of the business. Ownership can draw on their skills on an as-needed-basis without expending significant dollars usually required for a full time CFO.  If you could use additional assistance in managing your financial operations and benefit from an outside perspective, it may be time to consider a temporary CFO for your business.

Asset-Based Lending Grows in Popularity

An article from this Tuesday’s Wall Street Journal highlights the flexibility  that asset-based lending provides.  Weezabi LLC, the company highlighted in this story, is a prime example of how small businesses can use an asset-based line of credit to say “yes” to new business opportunities. Read the article

SBA Lending: Down But Not Out

Although SBA lending is down sharply in 2009 compared to 2008, the movement of new activity as of late, is a positive sign of good things to come.  Even a slight increase in activity will give entrepreneurs some level of hope that a bigger credit thaw will happen in 2010.  In the meantime, entrepreneurs need to be creative and think outside the bank box for financing solutions.  Asset-based lending, factoring, PO financing and equipment leasing will continue to be viable solutions to today’s financing challenges.

Macomb Incubator Promises Progress for Small Businesses

The new site of entrepreneurship for Macomb County was unveiled on Monday in Sterling Heights and what a sight it was.  After interacting with many of the 400+ business owners, professional service providers and dignitaries, it was clear that entrepreneurship in Macomb County is alive and kicking.  At a time when negative press is running wild, it was great to see so many folks energized about what the future has in store for our region.  Business owners were excited about being able to leverage the Incubators talent in the areas of sales introductions, marketing, finance, business coaching and business planning.  It will be a valuable resource in moving entrepreneurship forward. Learn more about the Incubator

Access To Capital

We recently held a webinar discussing how entrepreneurs can gain access to capital and how to determine what type of financing makes sense for their business.

Take a listen below…. (it’s about 20 minutes long).

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Small Business Loans Criticized

Monday President Obama released a plan to increase the federal guarantee of small business loans to 90% and decrease fees associated with the loans. However, the action is being met with significant criticism. Read the Wall Street Journal article: Small Business Loans Criticized

Access to Capital Webinar

Entrepreneurs throughout the country are encountering challenges in gaining access to capital. With credit markets dried up and few banks lending to small businesses, it’s become increasingly difficult for small enterprises to get the working capital they need to grow their business. If you are interested in learning more about the financial spectrum and where to turn when your credit line shrinks, register for the upcoming “Access to Capital” webinar.

Thursday, March 18
9 a.m. EDT

E-mail name and company to: Nicole@macombcountychamber.com.

12 Tactics Entrepreneurs Should Consider

This outstanding Bnet article offers insight on 12 tactical moves (defense and offense) that small business owners can put into play now to weather the economic storm, particularly in the area of cash management. In a challenging economy, it’s important that business leaders focus on cash flow and are proactive in recognizing long-term working capital needs. It is beneficial for entrepreneurs to identify an alternative lender early in the process, before there is an immediate need. Also, CEOs and CFOs need to do their homework – does your working capital provider understand your business and industry, is there transparency regarding fees and processes and can they understand how the additional cash will be used and repaid?