85. How (and Why) 1 + 1 Really Can Make 3
Employing or needing a full time Finance Director/CFO – have a look at the Tectona way.
The traditional approach
A full time FD is right for some businesses – those of a certain size or complexity – but by no means all businesses.
Not least because of the cost of employment – the basic salary of a Finance Director can range from £80k to £130k or more.
Let’s assume you find one for £100k. National Insurance and benefits (pension, bonuses, car, medical etc.) can easily add a further £40k.
So you are looking at an annual investment of £140k. That also ignores the likely costs of recruitment – add a further £25k.
And then you have all the trials and tribulations of employing someone – holidays, reviews, salary increases, termination costs, etc. – it all adds up to a pretty big number.
But there is another way – the Tectona way
Often a more effective solution in both cost and output.
We suggest combining a really solid Financial Controller with a part time top notch Finance Director – which you pay for only when you need them.
The Finance Director will typically focus on managing the team and the systems and providing real strategic financial input.
For most small businesses this role rarely needs to be full time – a day or two a week often works just fine.
And it costs a lot less than that full time Finance Director/CFO you were about to hire:
Full time Financial Controller (basic of £45k) so with on costs £55k
Finance Director (part time) – no on costs or holidays – from £45k £100k
Additionally, you don’t pay a Finance Director/CFO to undertake Financial Controller work.
So, a potential saving of over £40k per annum.
So that is the commercial proposition…. and here are some of the additional benefits of the Tectona way – utilising one of our part time Finance Directors to lead and guide your finance team:
- A highly experienced, commercially savvy FD helping you and your business make the right decisions
- A Finance Team who can work around holidays and illness – you are not reliant on one person
- No recruitment fees
- No lengthy recruitment process (see separate article about just how costly this can be in its own right)
- No onerous (for you) and costly (guess what, again you!) employment contract – think holidays, termination/redundancy payments
- No sick pay to fork out for
- No maternity or paternity issues to worry about
- The total peace of mind that you have been craving – which means that you can sleep easier at night
Put simply, you pay for what you get (as opposed to getting what you pay for).
Save Money – Reduce Risk – Improve Output – Focus on Strategy
Put Tectona to the test. If you feel that there is a better way to manage your finances, why not share your thoughts with us? And we will show you how 1 and 1 really can make 3.
Our first – and overarching – desire is to understand you and your business; we do this by investing up to half a day of our time (cost free to you) so that we thoroughly understand your challenge, identify any other potential dangers and then (and only then) provide specific recommendations.
Drop us a quick email and we promise to help you find the right solution – for you.