Start-ups - do you have a finance director?

We spotted a good article in the FT last week which provides an interesting insight into the role of Finance Directors in new start-up businesses.

Quite often, entrepreneurs will try to do everything themselves during the early weeks and months of a new start-up, but quite often it is the role of finance director which is overlooked until things get out of control.

One entrepreneur, Spencer Gallagher, believes he is not alone in putting off the appointment of a full time FD:

“You look at it as a cost or something you don’t have to deal with. I also had this perception that all accountants would be balding 60-year-old men and not necessarily people who knew about running businesses,” he says.

Gerard Burke, director of Cranfield School of Management’s Business Growth and Development Programme, says that most entrepreneurs are not good financial directors, but it's a skill they most need:

“The vast majority of successful businesses have sound financial data, systems and expertise in place. Conversely, the vast majority of failing businesses do not, so it’s surprising to find so many owner-managers who say they’re not very good with the numbers.”

You can read the full article here.