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Most business people recognise that finance directors represent a significant cost, which is why they do not always hire one the minute they start up. However, most businesses do hire an FD when they get to a stage that they can afford them, so in this sense the value of Finance Director is almost universally recognised.
The cost of a full time finance director can often only be covered once the business has reached the right point in it’s development and journey through the business lifecycle, at which point all the benefits and value are also received.
Technology businesses engage with an FD at an early stage
As we are all aware the growth in new technologies and start ups over the last 10 years has been a phenomenon. Technology business are often backed by successful and experienced business people investing in great ideas. They are highly focused on growth and performance and have been at the vanguard of engaging FDs at a very early stage with the support of their investors.
Why?
Early stage tech businesses hire a senior FD on a part time engagement. By having them part time, the leadership receive all the commercial and finance experience they need and they get more senior experience with a manageable cost at a much earlier stage in the business lifecycle. Tech businesses have effectively brought forward the engaging of a key member of the senior team and are able to benefit from this experience much sooner receiving all of the experience at part of the cost.
The future of scale up businesses engaging part time FDs
We have seen significant growth in our part time FD services as businesses across multiple sectors now recognise that they can receive more value from a part time, highly experienced FD earlier in the business lifecycle and this value can eclipse that of a full time Junior FD.
For more information on what a finance director does and the value they provide for scale up businesses, click here or call us on 020 7717 5254
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