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When to Hire Your First CFO — From OnlyCFO
- Founders often mistake the timing to hire their first CFO, often opting for one around $10m-$30m ARR when they really need a VP/SVP of Finance, as advised by OnlyCFO.
- The right finance leader varies from a Series A company to a pre-IPO company, emphasizing the importance of timing and hiring the right person.
- Considerations for hiring executives include the leader's cost, capabilities of current leadership, and complexities of the business.
- Experienced executives can be costly, so hiring them should align with the business's needs and growth stage.
- Factors like the skills of existing leaders and the complexities of the business determine when a 'true' CFO is needed.
- More experienced leaders expect larger teams, so hiring the right level and timing is crucial to avoid unnecessary expenses.
- The CFO's responsibilities go beyond traditional finance areas, becoming more critical as the company scales.
- Deciding when to hire a 'true' CFO depends on various factors outlined, ensuring the role aligns with the company's growth and needs.
- While leaders can scale with the company, the finance leader at a $5M business might not be suitable for a $250M revenue company.
- Understanding the distinction between needing a CFO versus a (S)VP of Finance is crucial for optimizing financial leadership based on revenue milestones.
- Careful assessment of the criteria provided is advised to avoid hiring a CFO too early or too late, ensuring strategic alignment with the company's growth.
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