I am a sole founder of a tech startup. I am lacking a structured financial plan in my pitch. My idea was selected for several accelerator programs' final stages, but there is a common theme in rejection feedback:
Good product, huge potential, but lack of financial details.
I am looking into hiring or outsourcing the CFO responsibilities for now until I find someone to join the team. Has anyone used any financial agency or consultancy to do the same? What should look I out for? What deliverables should I include in the scope?
Or, should I just look for a CFO to join the team?
You want to prioritize your financial structure. It is apart of the foundation of your business and will cause a lot of harm if you aren't hands on about it. Yes- Get one-on-one help from a financial adviser or consultant. If you want to get a CFO, make sure they are are not just capable- but are committed to your company's success. Having a CFO long term will be likely be the best option.
Personally, I am currently assisting a friend of mine with her start up company and her lack of financial structure is a source of conflict. You cannot expect success without planning for it, it's a part of the bloodline for your business!
From a cultural perspective, I can provide a few thoughts
Pros
-You can get some of the immediate work done that you mentioned without risking a bad, quick hire
-A consultant might be able to provide you with a current state analysis, helping to determine key factors of your hire (type of work needed, experience, etc.)
-If you trust this consultants options, they can support you during the interview process to check for industry skills/knowledge
Cons
-Potential on-boarding and support time of someone who will not be with you in the long-term
-Potential bad culture fit giving your current employees a bad taste for what the role can do for the organization
-Poor optics of investing money in an outside resource in a small organization
I hope this helps a little. Good luck!
