PHOENIX, AZ--(Marketwired - July 13, 2016) - The trend of outsourcing labor costs is increasing for small to midsized companies. The reasons are complex: A global economy, governmental policy, regulatory encumbrance and more. The why is less important than how to deal with it -- especially in a top level position such as a Chief Financial Officer.
Sound financial management is critical to business success, but many companies don't know how to deal with this without a huge outlay of scarce resources. According to the Young Entrepreneur Council, writing in Forbes, there are three functions you can outsource in a start-up company. The CFO is at the top of the list. CFO level expertise is expensive, but it is still needed.
According to Dennis Collins, an expert CFO who has chosen to operate as a consultant, "Companies are usually good at what they do, but the financial piece is either missing or not understood." He believes he can be more effective and help more companies as a consultant, either for short term fixes or longer involvements. Many companies need C-level experience, but cannot afford it or don't appreciate the value an experienced financial officer provides.
The National Federation of Independent Business (NFIB) believes that outsourcing the CFO responsibilities allows business owners to get high-level financial guidance without creating a big paycheck. Collins agrees, "With my experience I can hit the ground running and have a massive impact quickly, since many issues that are obvious to me tend to be overlooked or ignored by existing management."
A report, "Top 10 Steps to be an Empowered Business Owner," is available on his website. This report is informative, as it identifies the top issues he faces when coming into a business for the first time. His approach is open and focused on key issues. He is known as a team-builder and gets disparate divisions in communication. His secret sauce of harmonious cooperation and team-building has helped two companies extend viability beyond expectations.
Based in Phoenix, Arizona, Collins is a prime example of what can be accomplished by a consulting CFO. Notable accomplishments include taking one company from $4M in Sales to $20M. Also, he saved a company $1.5M annually by relocating its inventory to Laredo, Texas. In another example, he developed and implemented profitability by Customer and Produce Line, adding $750K annually to EBITDA. Thus, limited or part-time expertise can have a major impact on a company's trajectory.
Collins is a prime example of how outsourcing, even with critical financial tasks, can be remarkably successful. For more information on how a part-time CFO can make a difference and to get his complimentary report, go to www.CFOExpertise.com, or email him at DennisCollins@CFOExpertise.com.