When to Hire a CFO
One of the most impactful decisions a growing company makes. Here’s how to recognize when the time is right.
When Should a Growing Company Hire a CFO?
Those are good questions and ones that we discuss with business owners on a regular basis. Ideally, a company should be up and running, generating income, growing and successful before hiring its first full-time CFO — though that is not always the case.
Revenue Threshold: $5M – $25M+
Generally speaking, you need to have some revenue coming in. If your company is generating between $5 and $15 million per year, it may be time to start thinking about hiring a full-time CFO. If your organization already has annual revenues of $15 to $25 million and you still don’t have a full-time CFO, you probably need to start thinking quickly about when and how to hire one.
Headcount: 40–50+ Employees
If you’ve got 10 people in the whole company and a pretty straightforward business model, that probably doesn’t warrant a full-time CFO. If, on the other hand, you are approaching 40 or 50 full-time employees and things are getting fairly complex, you probably need to at least consider adding a CFO.
Growth Rate: 15–25%+ Per Year
A growth rate somewhere between 15% and 25% per year is a relatively fast rate of growth and things can get complicated quickly. Do you have the finance leadership in place that can keep up with where the organization will be next year? It’s often better to ramp up and be prepared beforehand.
How Well Are You Sleeping?
Are you worried that you might not have a perfect grasp on the financial condition of the company? Doubts, concerns and questions may warrant bringing on a CFO. How complex has the finance and accounting become? How confident are you that the finances are being handled in the most productive and efficient manner possible?
Outside Investors or Venture Capitalists
If you have any type of outside investors or venture capitalists involved, you definitely need a CFO if you don’t already have one. Investors expect a CFO to be in place and will require financial reporting at a level that demands experienced financial leadership.
Consider an Interim CFO First
Not sure if you’re ready for a full-time CFO commitment? An interim or fractional CFO can be an excellent bridge — providing expert financial leadership while you evaluate your long-term needs. CFO Search can help with both.
Let’s Start Your
CFO Search Today
Contact us today — call, email or send a message. We respond the same day, every day. No retainer, no risk, no obligation whatsoever.
777 Main Street, Suite 600
Fort Worth, TX 76102
When to Hire a CFO
Deciding when to hire a CFO is one of the most impactful decisions a business owner can make. CFO Search has helped hundreds of companies — from startups to Fortune 500 firms — navigate this decision. Whether you need a full-time CFO, a part-time CFO or an interim solution, our team can advise and deliver. Related: Interim CFO Services | CFO Salary Guide