The profit margins for small biotech firms generally are smaller than for larger companies and corporations, so the operating budgets likewise are smaller. Former CFO David Johnston says small biotech firms can get more profits from small budgets with the help of an experienced part-time chief financial officer (CFO). Here are a few reasons why.

Sound Financial Advice Without Full-Time Executive Costs

A part-time CFO with good experience and a sound educational background can provide you with top-quality financial oversight and advice. You can get that sound financial management without having to pay full-time salaries, that a dedicated CFO would require.

A small biotech firm also can save money on benefits costs, including retirement benefits and other commonly provided executive benefits. If you want to change CFOs, you can simply terminate the contract and hire another one that you think might be a better fit.

Flexible Availability for Your Biotech Firm

When you have a good part-time CFO with flexible availability, you can use your CFO more during the times of the year when you need financial oversight the most. David Johnston says you likely will need your CFO more during the tax season and when making your annual operating budget.

Your part-time CFO also could be available as needed to iron out financial wrinkles that occur throughout the year. If a genuine financial crisis emerges, your CFO can help to contain it.

Financial Mentoring for Your Company

Your small biotech firm should require a long-term vision for growth and profitability. Your part-time CFO can help you to shape that vision and enable it to become a financial reality with financial mentoring services. Your CFO can help to create a realistic growth plan with budgets that are more likely to grow and enable your biotech firm to grow along with those bigger budgets.

Use a Domestic or International CFO

Unless you have international contracts and business connections from the start, odds are your small biotech firm will focus on doing business domestically. You can hire a CFO who is especially qualified and experienced in doing business in the United States. That can help you to establish your biotech firm.

If your business interests grow and you want to expand into international markets, a CFO who is more experienced at the international level could take over. An international CFO could help you to better understand the costs of doing business in other nations and limit potentially unpleasant financial surprises.

Learn More

If you are still considering hiring a part-time CFO, you can contact David Johnston to learn more about the benefits of a part-time CFO. You can call, complete an online form, or send an email to schedule a meeting and ask about his services.