Curiosity: it is the trait that fuels success for so many tech founders. Asking questions – the what, why, and how - pushes entrepreneurs to innovate and ultimately grow their business. Yet how can tech entrepreneurs channel that curiosity when communicating with their chief financial officer (CFO)? What questions should they ask the CFO of their company? And what answers should they expect?
Even before asking questions of their CFO, founders can take two steps to make the conversation a success. First, they should ensure they retain a high-calibre CFO, preferably one who commands the complexities of the tech industry. In fact, this consideration is one reason why tech founders outsource their CFO services. Second, founders need to understand the ways a CFO adds value to their business – from raising capital to day-to-day cash management.
Once they have retained a CFO and understood how they can help the business grow, tech founders are equipped to make the most of their conversation. Whether talking to an in-house employee or chatting with an external CFO, they should ask these five questions.
5 questions to ask your CFO
Almost every tech founder confronts the question of when to exit, and your CFO can help you hone the timeline. The CFO should tailor their advice by viewing the entire picture, not just the financial statements.
In general, here are some key signs that you should consider an exit:
- The business requires a level of investment that you are unwilling to pursue.
- The business is stagnant or is declining and requires new products, new markets, or an acquisition to take the business to the next level.
- You want to move on to new challenges.
BDO's CFO Services team can help your tech business in all matters financial – from raising capital to back-office financial support. Find out how BDO's CFO Services team can help your tech business grow.