When to Seek Help: A Guide for Small Business Owners

Running a small business is a rewarding yet demanding journey. As a business owner, you wear many hats and juggle countless responsibilities. You likely started your business because you are an expert in your craft, but you can’t be the expert at everything! How do you know when it’s time to bring in help?

When to Bring in Help

The challenges faced by small business owners are unique to each business. We all have different strengths, specialties, and tasks we are willing to learn and perform. Bringing in help doesn’t always mean hiring full-time employees. It could involve freelancers, consultants, or part-time workers. It’s all about finding the right balance for your business needs. Here are some challenges to consider:

• Overwhelmed by Workload: If you’re consistently working long hours and still can't keep up, it might be time to delegate some tasks. Bringing in additional staff to handle lower-level tasks can free up your time for more strategic aspects of your business.

• Skill Gaps: Struggling with tasks that you’re not skilled at or that take much longer than they should? Consider bringing in expert consultants who can perform these tasks more efficiently and effectively.

• Business Growth: Is your business growing faster than you can handle? An increase in demand is positive, but it also means you might need additional support to maintain the quality of your goods or services. Conversely, if your business is not growing as fast as you'd like, you can bring in coaches, mentors, advisors, or investors to help move you toward your goals.

• Financial Management Challenges: If managing finances is taking up too much of your time or causing stress, and you’re not an expert with numbers, you might be caught in the “Business Owner’s Trap,” and it might be time to seek professional help.

Are You in the Business Owner's Trap?

Many small business owners find themselves caught in the "Business Owner's Trap," which consists of three main challenges:

1. Cash Flow “Catch-22”: You need more cash to grow your business, but you need the business to grow to get more cash. Without sufficient cash flow, it's challenging to invest in new opportunities, expand your operations, or hire people to delegate tasks.

2. Expertise in Your Field, Not in Business and Financials: You’re an expert in your field, but not necessarily an expert in business and financials. Managing the financial aspects of a business requires a different skill set, one that perhaps you don’t possess. This can lead to inefficiencies and missed opportunities for growth.

3. Understanding the Financial Health of Your Business: You don’t understand the financial health of your business, and perhaps your accountant isn’t clearly explaining it to you. Without a clear picture of your financial status, it's difficult to make informed decisions that will drive growth and profitability. This lack of understanding can lead to financial mismanagement and, ultimately, business failure.

So, how do you escape the Business Owner's Trap? The key is to improve the only thing that matters in business: the amount of money your business makes. This is why all big businesses have a Chief Financial Officer (CFO). As a small business owner, you are the CEO (Chief Everything Officer), which includes the CFO hat. If the CFO hat is causing you too much stress, consider learning about our CFO Advisory services.

How Can a CFO Advisor Help?

A CFO for a big business typically performs three essential functions: track profit and cash flow, analyze what's working and what's not, and guide the leadership team. We do the same thing exclusively for small and medium-sized business owners through our unique CFO Advisory services, helping guide you on how to build a growing and successful business. Our focus:

• Improved Cash Flow: By analyzing and optimizing your cash flow, a CFO Advisor can help you unlock the funds needed to grow your business.

• Financial Oversight: Providing expert oversight to ensure your finances are managed effectively and efficiently.

• Strategic Guidance: Offering strategic advice to help you make informed decisions and capitalize on growth opportunities.

• Understand Your Numbers, in Clear Language: Helping you understand your financial statements and metrics, so you can better manage your business.

• Trusted Confidant: Acting as a reliable advisor who understands your business and supports your goals.

• Transform Your Business: Turning your business into a well-oiled machine rather than a job that consumes all your time and energy.

If any of these resonate with you, it might be time to consider a “right-fit” meeting. During this call, we can discuss your unique business challenges and identify how our CFO Advisory services can support your financial management needs, improve your cash flow, and help you thrive. Never be lost again about what to do to have a successful business. Book your right-fit meeting today!

Unlock Growth with CFO Advisory

As a small or medium-sized business owner, you understand the daily challenges of managing and growing your company. One of the most critical aspects of business success is ensuring a steady, positive cash flow. But achieving this isn't always straightforward, especially if you don't have a financial background. That's where our CFO Advisory services come in, bridging the gap between financial expertise and actionable advice to help your business thrive.

Did you know that approximately 20.4% of businesses fail within their first year, 37.9% fail by the end of their third year, and about 50% fail within their first five years, according to 2024 data from the U.S. Bureau of Labor Statistics? One of the primary reasons for these failures is the inability to generate consistent, positive cash flow. Cash flow issues can stem from various factors, such as poor financial management, insufficient demand for products or services, high operating costs, and unexpected expenses. This highlights the critical need for financial advisory services (what we call “CFO Advisory”) to help businesses navigate these challenges.

The Goal: Consistent and Positive Cash Flow

Every business aims to generate consistent, positive cash flow. We key in on both 'consistent' and 'positive,' because if you can't manage either, you're not likely to stay in business. Unlike profit, which is often an accounting figure, cash flow is about the actual movement of money in and out of your business. Having a profitable business does not always guarantee your business is staying alive. For instance, many small businesses might be profitable on paper but struggle to pay their bills or payroll on time due to cash flow issues.

Many business owners may not be familiar with the nuances of cash flow, and that's perfectly okay. Just as you don’t need to be a mechanic to drive a car, you don’t need to be an accountant to understand cash flow—but you do need someone who is.

The Role of Our CFO Advisor

Chief Financial Officers (CFOs) have traditionally been associated with larger companies, but their expertise is just as crucial for small to medium-sized businesses. Many small business owners might think, "CFOs are only for big businesses. I don't need that." However, the reality is that every business, regardless of size, can benefit from CFO-level insights and guidance, especially if they lack a strong financial background.

CFO: Expertise in Generating Positive Cash Flow

A CFO's primary job is to ensure your business keeps more cash than it spends, regularly. This is not something that a typical accountant or bookkeeper traditionally does. While accountants record your financial past, the “CFO” side of this service analyzes your numbers and helps you strategize for the future, ensuring your business remains financially healthy and is positioned for future success, however you define it for your business.

CFO/Advisor: Identifying Cash Flow Drivers

Both the CFO and the Advisor role play 50/50 parts in pinpointing the most critical financial metrics that drive your business's cash flow. We specialize in delving deep into the root causes influencing these cash flow drivers. By thoroughly analyzing these factors, we can clearly map out exactly what you need to focus on to improve and sustain consistent, positive cash flow. Our targeted approach ensures that you not only understand your financial landscape but also have a precise strategy towards a growing and successful business.

Advisor: Encouraging Action

The best advisors are more than just experts in their field; they are teachers, coaches, and consultants. Their role goes beyond simply providing advice and recommendations, as they must also motivate and inspire action. After all, the best advice is meaningless if it isn’t acted upon. Our CFO Advisors work closely with you to understand your capabilities and set realistic, achievable goals each month. You are the expert in your business, which is why we value your feedback in setting these goals. We ensure that the steps we propose are ones you believe you can accomplish. While you are the one who needs to take action, we won’t just disappear. Our Advisors remain by your side, inspiring and motivating you to take the necessary steps toward financial stability.

CFO Advisory Services vs. Fractional CFO

You may have heard the term or come across a job posting for a “Fractional CFO”. It's important to understand the difference between our CFO Advisory services and Fractional CFO services. A Fractional CFO is more like a part-time CFO who is entrusted with management and decision-making responsibilities. They take on a more active role within your business, handling day-to-day financial operations and making executive decisions.

Our CFO Advisory service is more consultative, meaning we empower you with the knowledge and guidance you need to make informed decisions, but the responsibility is still on you, the business owner, to implement those recommendations. While both services offer financial expertise, our CFO Advisory service focuses on empowering you, the business owner, to lead your business to financial health and success.

Why CFO Advisory Services Matter

With Venturio Bookkeeping & Advisory, you gain more than just financial advice—you gain a partner committed to helping you succeed and a confidant who will come to understand your business thoroughly, supporting you every step of the way. If this seems like a service you’d like to explore for your business, reach out to us today to schedule a call where we’ll see whether we’re the right fit for each other!

The Real Value of Your Numbers: Beyond the Financial Reports

If you’re a small business owner, have you ever looked at your financial reports and thought, "Okay, great. But what do I do with this data?" The truth is, financial reports are designed for accountants, not for business owners. Maybe you’ve asked your accountant or bookkeeper for more insights, but they’ve left you to decipher the data on your own. If this sounds familiar, you’re not alone. Many small business owners face this challenge.

The Gap in Current Accounting Services

Financial reports (Balance Sheet, Income Statement, and Statement of Cash Flows) are the backbone of all businesses. They provide crucial data on income, expenses, profits, and the value of your business. For many bookkeepers and accountants, delivering these financial reports marks the end of their services. Once they hand over the reports, the relationship pauses until the next reporting period.

Many accountants can help translate your financial reports into actionable insights, but they often don’t. Why does the relationship between you and your accountant, bookkeeper, or CPA have to end there?

Why Some Accounting Professionals Don’t Offer Advisory Services

Several factors explain why accountants might not provide advisory services. They might see their role as managing financial data, not interpreting it. Time constraints and heavy workloads also play a part, as detailed analysis requires more effort. Sometimes, they might struggle with “imposter syndrome,” feeling unqualified to give advice. However, who knows your business better than those who record its every financial move?

The Value of Going Beyond the Reports

Many small business owners crave more than just a snapshot of their financial health. Your financial numbers tell your business's story. Understanding this story can significantly impact your trajectory. Detailed financial analysis can reveal trends, highlight strengths, and uncover potential issues before they become major problems. It can also guide your business decisions, from budgeting and pricing to growth strategies and overall success.

The right advisor—a financial expert who can translate the numbers—can help you chart a clear path to transform your business and your personal life.

So Where Do I Go from Here?

In today’s competitive business environment, understanding your financial reports is more critical than ever. Don’t settle for basic financial statements. Seek services that offer deeper insights and turn your numbers into a powerful tool for success. At Venturio Bookkeeping & Advisory, we’re committed to do just that, helping you transform your business and achieve the success you envision.

Ready to make data-driven decisions that propel your success? Book a call with us today! We’d love to hear more about your business.