Why being a 1-man/women VCFO business is a really bad idea?

Background

3 years ago I stepped out of the corporate world and became, what I didn't realise at the time, a virtual CFO for Banjo (Fintech lender).

I don't really like the word VCFO but it's what we have for now so let's just roll with it. Probably a blog on its own.

I wrote a post on the topic about how it was actually quite challenging being a VCFO of 1 (Power of One = Power of None).

I shared some lessons learnt which resonated with many fellow VCFOs who I have met and even those who I hadn't heard of it in other countries around the world.

Since then I've also met many more virtual CFOs as many of those CFOs, like myself, were just running a single man or woman operation.

I (possibly some of them too) thought despite the fact of running my own business, it really didn't feel like I was building a scalable business with a good work life balance.

Long hours and weekends, but that's all now changed.

I had no choice but to disrupted my own role with this post, “Why I disrupted my own role and you should do the same”.

I also know of a few VCFOs who struggled so much, just like I did,  to build the dream business and ultimately gave it all up to go back to a full time role, earning much less but removing the stress, increasing their take home pay but sadly not fulfilling their dream.

The important thing to learn is that change is constant and we have to constantly change too, even if its just to stand still and not fail.

At times I have felt like all I was doing was standing still, never quite cracking through the pain barrier.

Refocus on your why?

I am a huge Simon Sinek fan.

Building a business that is not grounded in your own purpose (why?) is very dangerous.

Getting paid for your time or making a profit is not a purpose but an outcome (many miss this point).

Make sure your purpose is clear and try stick to it. It can evolve on the edges but every morning you wake up it should be front of mind.

How are you going to fulfil your purpose today?

My primary focus is helping finance professionals or business owners adopt or use the ever evolving skills and tech landscape of finance, centred mainly around financial modelling.  

In doing so I assess/research and even develop new ones to educate and communicate this knowledge.

So much of our roles today in finance is linked to technology so I continue along this path and through it add more value to business owners,  founders, start-ups and other keen Finance professionals wanting to learn.

CFOs just don't have the time to research all the tools out there, so I get to do it for them, so they stay ahead and become even more efficient.

How do you avoid the mistakes I made?

If you find yourself questioning your purpose then it might be time to consider the following key learnings.

1. Price for value not time

Most service businesses still charge for time.  With time being a limited resource so is your revenue potential. If your purpose is not valued you will get stuck with time and materials.

2. Learn,  adjust, execute and repeat.

Learn from mistakes, fix them and make the tough calls. You can never avoid mistakes but you can avoid learning from them which is much worse. Learn and repeat all over again till you have the right solutions that are aligned to your purpose.

3. It's not about you,  but your customers that define success.  

We assisted clients raise capital, list on the ASX, solve business complexities, negotiate with government and navigate the cashflow pinch. Success is not just the outcome but the journey on how you got your clients there.

4. Hire or invest in systems, processes and people that can do a better job than you.  

Focus on your strength, doing admin work is not it. Selling and keeping customers happy is and should always be your number 1 focus. Keeping focus on this as it has to be the highest priority, ahead of admin work and in some cases even delivery.

5. Surround yourself with great people that share and support your purpose.

This is not just a mentor,  although having one (and being one) is certainly recommended. I gain support and mentorship from many different people all over the world.

6. Sales, sales, sales.

If you not doing sales and marketing related activities every day and stuck working in vs on the business it will not end well.  I experienced this over 12 months ago when I had too much work and my global team wasn't fully established.

Sales is a process and without leads and conversion you simply don't have a business.

7. Practice what you preach.  

Look forward and create value not a job.

Conclusion

If you are seriously considering leaving your cushy/shitty job to start a business being a financial mentor then you need to think of what that looks like.

Businesses out there have an accountant and bookkeeper but really need someone to help them look forward, and you might well be the person to do it.

But do you have the infrastructure to execute on that value?

If you don't setup your business for success and reskill/train yourself, then it's really going to end up in tears.