A few days ago we talked about the importance of having an external CFO to carry out all the finance-related activities of your startup. Today, we’re writing this article to talk about the different possibilities you have when looking for financial advisory for startups depending on the needs of your company.
In general terms, we can say that any startup is going to need at some point some of the services that we are going to present below.
Therefore, if you are considering asking for help with your startup’s financials, you can do it in four different ways.
Basic financial advisory service
This is the basic service that any company or freelancer needs to delegate to a professional in order to have their finances under control.
The company hired will be in charge of managing the company’s accounting, official books and taxes, that is, everything related to compliance.
At The Startup CFO we offer these services, with which you can cover your needs with an experienced team.
One-off financial advisory for startups
If your startup needs to hire a one-off financial advisory service to carry out a specific project, this is the level you need to go to. Fundraising rounds with professional investors, obtaining a public subsidy or preparing a business plan, are some examples of that kind of one-off services.
Although there are cases in which it can fit very well with the needs of the company, if you want to make changes in the hypotheses of the business plan later on, it would be great if you could continue requesting for help.
For this reason, we believe that a one-off service can fit into certain situations, but we are also going to recommend you analyze as deep as possible your needs in order to see if you need a more recurrent service instead of a one-off.
Mentoring
You may prefer to have a senior professional to advise you on everything related to your company’s finances without getting involved in the day-to-day of your startup, and then hiring a mentoring service may be a good option for you.
Mentoring services can help you validate your business plan and locate new financing opportunities as well as guide you when developing your project, but they will not be able to get 100% involved as if it were part of your company.
External CFO
We have reached the last level of advice that you may need and that we have already talked about in previous articles: the external CFO.
Hiring this service allows you to delegate your entire financial strategy to a professional with experience and contacts in the sector, as well as knowledge of the problems that your startup may face.
An external CFO adds value to your company because he is 100% involved in all economic decisions and their execution as if he were part of the team, with the advantage that you can hire him at a lower cost by working part-time.
Due to these reasons, at The Startup CFO we usually work under this method with practically all our clients, since we consider that it is usually the most appropriate option for most startups.
Do you want to hire external CFO services for your startup?
Having a person with knowledge and experience that can face any problem can make a difference in the early-stages of your startup.
If you are thinking of hiring financial advice for your startup or you want us to help you in a one-off project, we invite you to contact us.In that case, you can email us at info@tscfo.com and we will be happy to see if we can help you.
