5 Common Challenges Businesses Face

5 Common Challenges Businesses Face

We have the luxury of working with a lot of businesses. While they are all different and have their unique challenges, there are some common themes among the challenges we see:

Challenge #1: The business relies on the owner, or it all falls apart.

Moving from the initial stages of a business to the next level takes out of the box thinking and a willingness to delegate with clear accountability for results. This isn’t easy. It’s imperative to find the right team to move forward. It means a team that the business owner feels comfortable delegating responsibilities to, that gives the relief they need to focus on other things. The business is also more valuable to outside buyers if it can run without relying so much on the owner.

Challenge #2: The business owner is constantly battling a ‘catch-22’ situation.

They can’t grow their business without more money, but they can’t get more money without growing their business. How do you move forward when you are constantly spinning your wheels? An experienced CFO that knows the best way to manage cash flow or secure additional capital to successfully build the business is a key to success.

Challenge #3: The business owner doesn’t understand what’s working – and what’s not – in their business.

The typical financial reports (like the P&L, Balance Sheet, etc.) are made for accountants…not business owners. They are downright confusing…and they don’t tell the whole story. In addition to having clean financials, you need to understand the “numbers behind the numbers”. This could be profitability by location or product line or other key performance metrics. Our CFOs have experience in the industry the business owners are working in, giving them an inherent knowledge of this analysis.

Challenge #4: The business owner does not have clear goals.

How does a business owner know if they’re making progress if they don’t know where they want to end up? Business owners may need help defining their business strategy. Do you have a plan for next year? How about the next 3-5 years? A forward-looking CFO can provide the tools and expertise to help business owners define their goals and create a business strategy designed to move their business forward.

Challenge #5: The business owner does not have a clear path to follow to have a growing and more profitable business.

Most business owners don’t have a solid plan of what to do or how to do it so that they can achieve their goals. How do you get from point A to point B? Even if the business owner has goals in mind, they may not have the right tools to know how to reach those goals. An experienced CFO has made this journey before and can bring their expertise to the table to help accomplish these goals.