The modern business environment is more competitive than ever, and this has forced many SMEs to take a long hard look at their overheads, and trim them where possible.
The wage bill can often be one of the largest overheads that a small business has to manage, and a large number of SMEs are now looking for a a more flexible, lower cost and lower risk solution to their staffing requirements in order to manage their return on this investment more effectively.
Lowering business overheads is something that can clearly be seen on the balance sheet. A flexible approach to staffing, especially at executive level, can offer other benefits to a business owner; emotional benefits.
These emotional benefits cannot be included in a profit and loss statement, but they can still make a measurable impact on the well being of a business owner. Emotional benefits could manifest themselves in lower stress levels or a better working relationship with members of the team.
These emotional benefits are as important, if not more so, than rational ones.
At Tectona, as 21st century financial experts, we are aware that taking on part time staff, especially at the executive level, has to be carefully considered, and here we explore the emotional benefits to the business owner of taking on a part time executive, specifically, a part time finance director.
The rational return on investment
The rational benefits of hiring a part time finance director are well recognised and include:
– commercial understanding and experience
– no need to commit to a full time salary
– production of accurate, timely and meaningful financial reports, forecasts and plans
– taking advantage of the commercial “nous” a part time finance director provides
– using their network and knowledge to secure the funding required for business growth
It is however the emotional benefits which often provide a much better return on investment for owners of growing SMEs.
And the emotional return – don’t just take our word for it
Tectona commissioned research which highlighted some surprising emotional benefits identified by small business owners who had taken on a part time finance director. Although there may not be an easily attributable monetary value to some of the benefits, they are important factors in contributing to the sustainability of a small business in the modern world.
Below we look at four of these benefits in more detail. Hiring a part time finance director:
– ‘gives me confidence’; confidence in pressing ahead with a plan feeling fully clear about risks. As we continue to move out of the recession, it is critical that business owners can feel confident taking the measured risks necessary to move the business forward.
– brings ‘new ideas, and new ways of thinking’. A good part time finance director will be open in sharing ideas and experiences that they think will benefit the business, and this can lift a weight from the shoulders of the business owner who may have run out of ideas.
– ‘makes me feel empowered, relieved and compliant’. By supporting the business owner to feel more confident in driving the business, and by bringing new ideas to the table to make this happen, hiring a part time FD can empower a business owner to make decisions, knowing they will be supported by an experienced executive who has the best interests of the business at heart.
– provides the business with a ‘financial ambassador’ who can support the business owner in building relationships with internal and external stakeholders, whilst keeping the financial interests of the business at their core.
When considering whether or not to take on a part time finance director, it is natural to only consider the rational benefits and the hard monetary return on investment.
It is clear from Tectona’s research that the emotional benefits actually offer more value to the business owner looking to grow their business.
To find out more about how hiring a part time finance director could benefit your business, or if you would like to discuss any of the topics covered above further with Tectona Partnership, please contact Mark Nicholls on 07818 407061.