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Casual Articles - The Benefits of a Part Time Finance Director
Well not everyone is aware that McDonalds also owns several other bands such as Boston Markets; 650 stores in 23 states, Chipotle Mexican Grill; 230 stores in 10 states, Donato's Pizza 200 stores in 10 states, Pret a Manager 140 stores in 4 countries, Fazoli's 400 units in 32 states and two countries. Of this the company derives 2 Billion in annual sales, this is not even counting McDonalds. Many people are unaware of this because McDonald's has not connected the dots. However other franchise companies which franchise and have multiple brands have.The question shall always be to you co-market to the same customers or serve separate niches. I
However, a virtual or part time Finance Director would provide several advantages including:
- Containing costs. The financial skills required in the business would only used when the business needs them.
- Usually experienced in different business sectors and different sizes of business. This would provide the opportunity for the part time FD to transfer the skills, best practices and knowledge gained in one industry to another.
- Offering the business owner unbiased and independent opinions.
- Freeing-up management time<Skilled Mechanic Wage Study ReviewThe position of Finance Director (FD) in business is generally held in high esteem and in many instances the role is considered to be second to the Chairman/Managing Director.
Well what is a good mechanic worth these days? You cannot place a value on them simply as labor units as they teach in management school, they are worth more than money. So why not treat them with respect and dignity and pay them what they are worth, we believe that the national averages are too low. There is a partial report on the Automotive and Trucking Sector from the Fed's Beige Book, June 2002.I do not concur with all these numbers, but this is an average and a good indication of some since of reality. Certainly the numbers are incorrect for North Eastern US, Houston, Dallas, Denver, LA, PHX, Seattle, Atlanta, Detroit, and Minneapolis.The position affords the incumbent the opportunity to become actively involved in all aspects of the business in order to facilitate good planning and reporting practices. On occasions this high level cross-functional activity may not be enjoyed or even welcomed by the Finance Director’s peers.
Whilst it would be expected that larger organizations would appoint a full-time Finance Director, there are many reasons why such an individual may not be employed by many small and medium sized businesses.
There are situations that are most suited for engaging a Finance Director and these include:
- The owner losing control of the business – not knowing how the business is performing – no management accounts – no cash management
- Rapid business growth without a senior financial professional to assist in setting a robust strategy and plan for the future
- Businesses that absorb all available cash with increases in working capital potentially restricting growth and capital expenditure.
- Established businesses with poor profitability and/or with an unacceptable cash generative history.
- Businesses facing external pressures to make financial improvements to satisfy personal or corporate commitments from banks or investors.
- Business owners that plan to exit and seek help to maximize the business value.
Consider the appointment of a Part Time Finance Director.
An increasing trend amongst small and medium sized business owners is to appoint a Part time Finance Director, albeit the person may not be formally appointed to the board – thus becoming a virtual FD.
The part time FD will only work sufficient time to discharge the commitments of the position; this then represents a significant saving against employing a full time person. Typically one to three days each week would be worked which would be a cost effective solution for the small and medium sized business owner.
Would the role of the part-time Finance Director differ from that of a full time person? No, the responsibilities of the position; be it part-time or full-time would be the same; only the time worked would be different.
The part time FD would become conversant with the business, take responsibility for accounting, cash management and advise and report on the financial performance of the business.
However, a virtual or part time Finance Director would provide several advantages including:
- Containing costs. The financial skills required in the business would only used when the business needs them.
- Usually experienced in different business sectors and different sizes of business. This would provide the opportunity for the part time FD to transfer the skills, best practices and knowledge gained in one industry to another.
- Offering the business owner unbiased and independent opinions.
- Freeing-up management time Going For Growth: Debt, Rate-of-Return and Risk
All businesses make investments in both plant and equipment, and also in their employees. Depending on the type of enterprise, some businesses will have more invested capital than others. For example, a manufacturing oriented business will have substantially more hard physical capital invested than one devoted to service. No matter the type of business, the primary question remains the same. The question is--- what is the purpose (or goal) of any business investment? The answer--- the purpose of any investment is to increase the net worth of that investment.Then, how do you accomplish this? This is accomplished by maximizing the return
Consider the appointment of a Part Time Finance Director.
An increasing trend amongst small and medium sized business owners is to appoint a Part time Finance Director, albeit the person may not be formally appointed to the board – thus becoming a virtual FD.
The part time FD will only work sufficient time to discharge the commitments of the position; this then represents a significant saving against employing a full time person. Typically one to three days each week would be worked which would be a cost effective solution for the small and medium sized business owner.
Would the role of the part-time Finance Director differ from that of a full time person? No, the responsibilities of the position; be it part-time or full-time would be the same; only the time worked would be different.
The part time FD would become conversant with the business, take responsibility for accounting, cash management and advise and report on the financial performance of the business.
However, a virtual or part time Finance Director would provide several advantages including:
- Containing costs. The financial skills required in the business would only used when the business needs them.
- Usually experienced in different business sectors and different sizes of business. This would provide the opportunity for the part time FD to transfer the skills, best practices and knowledge gained in one industry to another.
- Offering the business owner unbiased and independent opinions.
- Freeing-up management time<Tamper Evident Asset Labels Protect Your Equipmentiness owner may gravitate back to the work with which he/she is most comfortable or to the work that is necessary to meet the immediate business demands. This action is taken at a time when the business may be becoming more complex, undergoing change and potentially be at greater risk of failure. In such circumstances the services of a Financial Director are essential to maintain the good management and success of the business. Affordability is one key reason why a full-time Finance Director may not be employed in the small business. However, the cost of a full-time FD may be prohibitive but it does not eliminate the need for a person to fill the role. In addition there may not be sufficient work to actively engage a full-time finance director, what then are the options?
Let's face it, companies these days are always losing equipment to theft and misplacement all because big brother isn't watching close enough. Keeping track of your company's assets should give you piece of mind and your employees some accountability. Just by putting a small asset label on their laptop or expensive piece of equipment, can sometimes mean the difference if that item makes it back or not.Asset labels come in all sizes, shapes and material types. There are companies that will print custom asset labels with your logo, barcode and specific number sequence. This can be expensive with set up fees and long lead times. The resultConsider the appointment of a Part Time Finance Director.
An increasing trend amongst small and medium sized business owners is to appoint a Part time Finance Director, albeit the person may not be formally appointed to the board – thus becoming a virtual FD.
The part time FD will only work sufficient time to discharge the commitments of the position; this then represents a significant saving against employing a full time person. Typically one to three days each week would be worked which would be a cost effective solution for the small and medium sized business owner.
Would the role of the part-time Finance Director differ from that of a full time person? No, the responsibilities of the position; be it part-time or full-time would be the same; only the time worked would be different.
The part time FD would become conversant with the business, take responsibility for accounting, cash management and advise and report on the financial performance of the business.
However, a virtual or part time Finance Director would provide several advantages including:
- Containing costs. The financial skills required in the business would only used when the business needs them.
- Usually experienced in different business sectors and different sizes of business. This would provide the opportunity for the part time FD to transfer the skills, best practices and knowledge gained in one industry to another.
- Offering the business owner unbiased and independent opinions.
- Freeing-up management time<The 6 Steps to Six Sigmaof a Part Time Finance Director.
Step 1Get the proper level of Six Sigma expertise at the executive level of the company. If the top leaders don’t understand the advanced six sigma principles, the company has no shot to attain total quality. This will probably require a hefty budget, entailing the hiring of several high-priced consultants for long periods of time. The consultants need to observe and gather data about the companies operations, and show the executives how to interpret the data.Step 2Get the staff involved. The ones in the trenches are the most knowledgeable about the day-to-day operations, and the day to day’s are where most costsAn increasing trend amongst small and medium sized business owners is to appoint a Part time Finance Director, albeit the person may not be formally appointed to the board – thus becoming a virtual FD.
The part time FD will only work sufficient time to discharge the commitments of the position; this then represents a significant saving against employing a full time person. Typically one to three days each week would be worked which would be a cost effective solution for the small and medium sized business owner.
Would the role of the part-time Finance Director differ from that of a full time person? No, the responsibilities of the position; be it part-time or full-time would be the same; only the time worked would be different.
The part time FD would become conversant with the business, take responsibility for accounting, cash management and advise and report on the financial performance of the business.
However, a virtual or part time Finance Director would provide several advantages including:
- Containing costs. The financial skills required in the business would only used when the business needs them.
- Usually experienced in different business sectors and different sizes of business. This would provide the opportunity for the part time FD to transfer the skills, best practices and knowledge gained in one industry to another.
- Offering the business owner unbiased and independent opinions.
- Freeing-up management time<Unique Marketing Ideas That Generate Cash!time FD would become conversant with the business, take responsibility for accounting, cash management and advise and report on the financial performance of the business.
First of all - keep in touch with your customers! One of the best ways to do this is with a newsletter. Today it’s easier than ever to have a newsletter – use email. If you don’t have your customer’s email addresses already, start asking for them when they pay for something at the cash register. Give them an incentive for signing up for your free newsletter – maybe a free gift or a small discount or even a prize draw they can be entered into.Use your newsletter to let customers know about sales in advance, extend special invitations to past customers only and open the store during non-regular hours. A popular sporting goods store where I liHowever, a virtual or part time Finance Director would provide several advantages including:
- Containing costs. The financial skills required in the business would only used when the business needs them.
- Usually experienced in different business sectors and different sizes of business. This would provide the opportunity for the part time FD to transfer the skills, best practices and knowledge gained in one industry to another.
- Offering the business owner unbiased and independent opinions.
- Freeing-up management time to enable other specialist functional directors to concentrate their work in areas most beneficial to the business.
- Providing input into the strategic decision making process.
- Advising on general business matters.
- Adding credibility of the business to third parties, particularly banks, finance providers and other professionals.
- Consulting with auditors, solicitors and other professionals on behalf of the business.
- Ensuring good management and accounting practices are implemented and compliance with statutory requirements.
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