Anyone hired a Financial Director / Manager?
Anyone hired a Financial Director / Manager?
Author
Discussion

KevF

Original Poster:

1,994 posts

214 months

Friday 28th October 2022
quotequote all

Business has grown rapidly over the last 24 months and I am pondering the need of a Financial Director / Manager.

I come from an operations background so the financial side of the business is based on what I have learnt either self taught or from my book keeper.

I guess I am looking for someone who has had a similar situation where they have felt it time to have an 'expert' look after the financial side in relations to strategy, reporting, planning and execution.
Do I go full time or part time. Do I need a Financial Director or Financial Manager?


simon_harris

2,152 posts

50 months

Friday 28th October 2022
quotequote all
or do you just need to engage with an accountant?

2 sMoKiN bArReLs

31,253 posts

251 months

Friday 28th October 2022
quotequote all
An experience FD should pay for their own salary...that was always my target.

There are plenty of schemes where you can hire the experience of an expert on a part time basis. That might be a plan until you are sure?

Really depends on the size & complexity of your business as to what you might need?

Do you know anybody that could come & look at your needs and help you make a plan?

StevieBee

14,277 posts

271 months

Friday 28th October 2022
quotequote all
KevF said:
Business has grown rapidly over the last 24 months and I am pondering the need of a Financial Director / Manager.

I come from an operations background so the financial side of the business is based on what I have learnt either self taught or from my book keeper.

I guess I am looking for someone who has had a similar situation where they have felt it time to have an 'expert' look after the financial side in relations to strategy, reporting, planning and execution.
Do I go full time or part time. Do I need a Financial Director or Financial Manager?
Yep.

Your first port of call should be with your Book Keeper and Accountants to get their view as to whether you need a Manager or Director - or indeed either of these. What you need may be able to be provided be either of these at less cost than taking someone on. Either way, seek their view.

A Financial Director is likely to be more invested in the long-term ambitions of the business. A good one, could - should - be an integral part of the management team in terms of shaping things to support its growth.

You may get some of that from a Financial Manager but will typically be more functional in their approach.

I don't think you'll find many FDs willing to take on a part-time role whereas you will with FMs.

If you have the money and there's sufficient for them to do, I'd go the Financial Director route. If you get a good one, they will really make a tangible positive difference to the company's growth. A Manager will make your life a bit easier.

If you do end up recruiting someone, two things from experience....

You must absolutely explore references. Don't rely on someone filling out a form - pick up the phone and speak to past employers.

You must also be happy that you are both on the same level, that they understand your vision for the business and are willing to support you in that. If they're not, you may still get a competent individual but they will for ever be a pain-in-the-arse-block in terms of what you're looking to achieve.

HTH






TAZ 215

84 posts

163 months

Friday 28th October 2022
quotequote all
I have a portfolio FD from EFM.
He works for me a day a week.
Very pleased with the results. For relatively low cost I get high quality expertise and a broader view.
We are in the bike market and he is a cycling enthusiast so “gets it”. But equally he has lots of broad experience, contacts and current roles so I get a good blend of understanding and outside perspective and expertise.
I am described as a highly numerate MD, but I am self taught / instinctive where finances are concerned. Having a sounding board is really important.
As someone else said, you have to have a good fit with the FD to avoid them being a pain in the arse.

TAZ 215

84 posts

163 months

Saturday 29th October 2022
quotequote all
I have a portfolio FD from EFM.
He works for me a day a week.
Very pleased with the results. For relatively low cost I get high quality expertise and a broader view.
We are in the bike market and he is a cycling enthusiast so “gets it”. But equally he has lots of broad experience, contacts and current roles so I get a good blend of understanding and outside perspective and expertise.
I am described as a highly numerate MD, but I am self taught / instinctive where finances are concerned. Having a sounding board is really important.
As someone else said, you have to have a good fit with the FD to avoid them being a pain in the arse.

NDA

23,362 posts

241 months

Saturday 29th October 2022
quotequote all
KevF said:
Business has grown rapidly over the last 24 months and I am pondering the need of a Financial Director / Manager.

I come from an operations background so the financial side of the business is based on what I have learnt either self taught or from my book keeper.

I guess I am looking for someone who has had a similar situation where they have felt it time to have an 'expert' look after the financial side in relations to strategy, reporting, planning and execution.
Do I go full time or part time. Do I need a Financial Director or Financial Manager?
I've hired a few over the years... a book keeper will only take you so far. If, for example, you wanted to exit, an FD is vital. Is cashflow an issue? An FD can be incredibly helpful in cashflow modelling (for example), something my feeble brain could never handle! Will you grow through acquisition? Again, an FD is important in the process.

It's a big subject and a large change for the business - you need very good chemistry with whoever you hire. You don't want one who thinks he/she can run the company better than you. smile

ETA - Will the FD be able to do all the things you're bad at? They always did in my case.

POORCARDEALER

8,604 posts

257 months

Saturday 29th October 2022
quotequote all
Drop me a DM, my wife is a portfolio FD and will give you some advice FOC

KevF

Original Poster:

1,994 posts

214 months

Monday 31st October 2022
quotequote all
StevieBee said:
Yep.

Your first port of call should be with your Book Keeper and Accountants to get their view as to whether you need a Manager or Director - or indeed either of these. What you need may be able to be provided be either of these at less cost than taking someone on. Either way, seek their view.

A Financial Director is likely to be more invested in the long-term ambitions of the business. A good one, could - should - be an integral part of the management team in terms of shaping things to support its growth.

You may get some of that from a Financial Manager but will typically be more functional in their approach.

I don't think you'll find many FDs willing to take on a part-time role whereas you will with FMs.

If you have the money and there's sufficient for them to do, I'd go the Financial Director route. If you get a good one, they will really make a tangible positive difference to the company's growth. A Manager will make your life a bit easier.

If you do end up recruiting someone, two things from experience....

You must absolutely explore references. Don't rely on someone filling out a form - pick up the phone and speak to past employers.

You must also be happy that you are both on the same level, that they understand your vision for the business and are willing to support you in that. If they're not, you may still get a competent individual but they will for ever be a pain-in-the-arse-block in terms of what you're looking to achieve.

HTH
Great stuff. I have a book keeper who has grown into an accounts position over the 15 years she has been with me but in the next 3 years will retire. I have a new book keeper just started to start to migrate work across.
Knowledge of the business for the current book keeper is great due to the length of time in the role and I feel a great comfort knowing she understands the business. However, she is not able to do forecast, projections, cash flow analysis etc that a FD or FM should be able to do for me.
I have learnt as I go but know the limits of my skills and think, getting someone trained/experienced in the role would benefit me. However, its a huge step and my concern is whether there is enough work for a full time FD. As mentioned, the FD should be able to ‘cover’ their salary in the benefits to the business hopefully.

I would certainly be rigorous in the reference and interview stages and appreciate your advice.

KevF

Original Poster:

1,994 posts

214 months

Monday 31st October 2022
quotequote all
NDA said:
I've hired a few over the years... a book keeper will only take you so far. If, for example, you wanted to exit, an FD is vital. Is cashflow an issue? An FD can be incredibly helpful in cashflow modelling (for example), something my feeble brain could never handle! Will you grow through acquisition? Again, an FD is important in the process.

It's a big subject and a large change for the business - you need very good chemistry with whoever you hire. You don't want one who thinks he/she can run the company better than you. smile

ETA - Will the FD be able to do all the things you're bad at? They always did in my case.
This is where I am at. Exit of the business is not ‘yet’ ….current climate means the business (like a lot) has devalued and hit cash flow. My business is typically sold as a multiple of cash flow so been hit hard.
There are options for me to continue to grow the business over the next 5 or so years too. So options very truely open and one reason why I think a FD would help me and the business.
The change is what concerns me I think. Releasing some control is never an easy thing … smile

KevF

Original Poster:

1,994 posts

214 months

Monday 31st October 2022
quotequote all
POORCARDEALER said:
Drop me a DM, my wife is a portfolio FD and will give you some advice FOC
Thank you. DM sent

sideways sid

1,422 posts

231 months

Monday 31st October 2022
quotequote all
I have provided exactly the service that you're looking for, for several clients including a fellow PHer.

I'll drop you a PM so that we can have a chat if you would like to.

theguvernor15

1,020 posts

119 months

Tuesday 1st November 2022
quotequote all
I would exercise caution asking your accountant whether you require an FD.

My OH worked in practice & ended up working for one of her clients around 5 years ago, the partner she worked under profusely advised against the business owner employing an FD, because it meant the practice lost a considerable amount of fees from the client.

She is her current employers most valued employee, has saved them an absolute bucket load of cash (as well as made them a lot)!

She had absolutely no experience in the paticular sector, but is very driven & a hard worker & the company has gone from strength to strength.

It was also a similar story when our company employed our FD from the large local accountancy firm we use.

I would say it's a fairly typical transition from a forward thinking accountant from practice to transition to working for one of their clients.