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Here's how your CFO could help your startup prepare for and outlive a recession -
1) Shift power to the CFO: introduce a more frugal culture — stricter budget control, careful hiring policy and in some cases, a reduction in costs through reduction in headcount
2) Valuing financial KPIs above all else: EBITDA is THE key metric, all other KPIs can most likely be discarded during a downturn
3) Be realistic about cash flow: Cash is king and to ensure accurate cash flow forecasts realistically evaluate whether you can keep your existing customers, and if needed change customer strategy
A lot of investors have focused their advice on conserving cash and extending runway, but they forget that doing all those key things requires strong leadership from one key role: the chief financial officer (CFO).
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