Growth@Scale - Not Just a Number Cruncher: How startups can leverage CFOs for more sustainable growth
As startups navigate the challenges of early stages of growth, a good CFO can be the difference between reaching the next level and stagnation. In the latest episode of Growth@Scale, Lea Dudum, CFO of Elevation Advisory spoke with host Matt Widdoes about how successful CFOs are instrumental in bridging founders’ vision with financial pragmatism, becoming an essential part of the strategic decision-making process.
In the startup world, CFOs aren’t just number crunchers – they're vision translators, turning founders’ wild ambitions into feasible financial models, setting key performance indicators (KPIs), and designing hiring plans that match the startup's financial health.
A part-time CFO can effectively initiate crucial financial processes for early-stage companies, but as the company expands - ideally at around 25-50 employees and a successful Series B funding round - a full-time CFO becomes indispensable for managing the team and steering company strategy.
For startups fresh off a successful funding round, a CFO is the guardian of the war chest. They help design a financial blueprint ensuring a 24-month runway, identify key priorities and growth strategies, and assist in assembling the right team to realize these goals. An adept CFO keeps a keen eye on the burn rate, balancing expenditure and revenue to ensure the startup stays aloft.
For growth-hungry startups, the days of a CFO being some behind the scenes pencil pusher are over. They are key players in creating harmony between strategic vision and actionable, practical, financial planning on the road to sustainable growth.
Growth@Scale - Listening your way to market
Listening to your customers’ needs and feedback is a critical step in developing a successful go-to-market strategy and validating your product. In the latest episode of Growth@Scale, Matt Widdoes discusses how essential open communication is when developing product with Jason Purdy, a product lead at Square. Jason shares his experience and best practices for building and scaling products.
For go-to-market strategies, put your customers first. They’re an invaluable source of feedback that can’t be ignored. Actively engage with your customers regularly, whether through surveys, reviews, or even 1:1 conversations, to ensure you’re tuned into their needs, wants, and concerns.
Innovation and iteration is the key to growth and success, but before making any big changes to your product, check in with employees and customers. Change for the sake of change rarely pays off, so keep the lines of communication open and be calculated in your product’s evolution.
When you do make a change, the need for customer feedback is greater than ever. Through rigorous testing and customer feedback, you can stay agile while adapting your product to match the changing needs of your customers and the market.
Don’t, however, be shy about trying something bold. Innovation involves a substantial amount of risk-taking and you can’t always let customer input hold you back from a breakthrough. Henry Ford famously said, “If I had asked people what they wanted, they would have said faster horses.”
When you surround yourself with a team that is collaborative, communicative, and innovative, and take the time to actively listen to both the market and your customers, you’ll find the road to scaling to be a much smoother ride.