Achieve Success in Your First 100 Days as a Startup CFO

In the fast-paced world of startups, a CFO can set the stage for success within the first 100 days—or even less, when joining a new company. The startup environment will throw unexpected challenges and opportunities your way, but having a solid action plan, combined with an awareness of personal strengths and blind spots, is key to making a significant impact early on.

Nailing the onboarding process is essential to building solid foundations, establishing a strong reputation, and forming crucial relationships that will enable you to deliver on key strategic priorities. So, how can the first 100 days look for a startup CFO? Let's break it down.

Prepare (Days -20 to 0)

To hit the ground running in your new role, thorough preparation is essential, especially when preparing for the unique challenges of early-stage startups. Here are the initial steps you can take to equip yourself, so you can develop a strong foundation. By requesting and analyzing crucial documentation, conducting in-depth industry research, and crafting a well-defined plan, you'll be well-positioned to make informed decisions and drive impactful outcomes from day one.

Request Documentation

• Previous Board Packs: These provide insights into the company’s historical decisions, strategic priorities, and financial performance.
• Commercial Bids: Understanding past and current bids helps gauge the competitive landscape and the company's positioning.
• Financial Statements: Reviewing these documents gives a clear picture of the company’s financial health, trends, and potential red flags.

Industry Research

• Key Principles: Grasping the fundamental principles of the industry ensures you speak the same language as your peers and can contribute meaningfully from day one.
• Competitor Analysis: Identifying key competitors and their strategies can highlight opportunities and threats.
• Moving Trends: Staying updated with industry trends can guide strategic planning and innovation.

Plan Development

• Clarity: A clear 100-day plan sets defined goals and expectations.

• Confidence: Confidence in the plan comes from thorough preparation and understanding of the company's landscape.
• Business Planning: Solid business planning practices are crucial for achieving operational oversight and financial accuracy, especially in startups.?

Assessment (Days 1 to 30)

The first 30 days are crucial for gaining a deep understanding of the business. During this assessment phase, your focus should be on observing the company in action, gaining cross-departmental insights, and thoroughly evaluating the financial position. This foundational knowledge will help you identify both immediate issues and long-term challenges, setting the stage for strategic decision-making and transformative leadership.

Observe:

• Business in Action: Spend the first week immersed in the business's day-to-day operations across all departments to understand workflow, culture, and challenges.
• Cross-Departmental Insight: This holistic view helps in identifying inter-departmental dependencies and potential areas for improvement.

Financial Position

• Current Standing: Assess current assets, liabilities, and overall financial stability.
• Historical Performance: Evaluate past performance trends to identify patterns and potential concerns.

Identify Challenges

• Immediate Issues: Pinpoint urgent financial or operational challenges that need immediate attention.

• Long-term Concerns: Recognize potential long-term challenges that could impact the company’s strategic goals.
• Key Questions: Focus on financial modeling, liquidation preferences, and term sheets to understand the intricacies of startup financing.?

Stakeholder Engagement (Days 1 to 100)

During your first 100 days, establishing strong connections with key stakeholders is vital for driving success. Clear and transparent communication will be essential in aligning everyone around the company's short-term and long-term goals. By understanding the aspirations and expectations of these key players, you’ll be better equipped to shape strategies that support the company’s vision and ensure cohesive progress.

Relationship Building

• CEO & C-Suite: Establish strong, collaborative relationships with the CEO and other C-Suite members to ensure strategic alignment.
• Leadership Team: Engage with the leadership team to understand their goals, challenges, and expectations from the finance function.
• Finance Team: Build rapport with your finance team to understand their strengths, weaknesses, and areas needing support.

Communication

• Clear Lines: Set up regular meetings and communication channels to keep everyone aligned and informed.
• Transparency: Foster a culture of transparency to build trust and facilitate better decision-making.

Goal Understanding

• Short-term Goals: Clarify immediate priorities and targets.
• Medium-term Goals: Identify key milestones and objectives for the next 1-2 years.
• Long-term Vision: Understand the company’s long-term vision to ensure all financial strategies align with it.

Assess Financial Health (Days 10 to 40)

During this phase, your focus will be on thoroughly evaluating the company's financial stability, particularly in the context of high growth businesses. By analyzing the financial runway, uncovering hidden issues, and identifying gaps within the finance team and systems, you'll gain a clear understanding of the company's financial health. This assessment is crucial for ensuring that the organization is well-positioned to address any challenges and maintain long-term stability.

Runway Analysis

• Financial Runway: Calculate the company's financial runway based on current cash reserves and burn rate to determine how long the company can operate before needing additional funding.

Uncover Issues

• Hidden Problems: Investigate any potential financial or operational issues that may not be immediately visible.
• Due Diligence: Conduct thorough due diligence to ensure there are no surprises later on.

Team & System Gaps

• Skill Gaps: Identify any skills or expertise lacking within the finance team.
• System Weaknesses: Assess the effectiveness of current financial systems and controls, and identify areas for improvement.

Financial Planning and Strategy (Days 30 to 50)

Building on the thorough assessments and stakeholder engagements you've completed, this stage is where you put your preparation into action by developing a robust financial strategy aligned with the company’s vision and current market position. By following these steps, you’ll guide the company toward sustainable growth. Additionally, prioritizing immediate funding needs and identifying potential sources of capital will ensure that the company remains well-funded and strategically positioned for future success.

Strategic Alignment

• Company Vision: Develop a financial strategy that aligns with the company's vision and long-term goals.
• Current Situation: Ensure the strategy takes into account the company's current financial health and market position.

Financial Objectives

• Key Objectives: Outline clear financial objectives and milestones to guide the company's growth.
• Capital Allocation: Develop a detailed capital allocation plan to ensure funds are used effectively and strategically.

Funding Priorities

• Immediate Needs: Prioritize immediate funding needs to support critical operations and growth initiatives.
• Potential Sources: Identify potential funding sources, including investors, loans, and revenue streams.

KPI / OKR Framework (Days 50 to 70)

With a solid financial strategy in place, the next step is to establish a framework for tracking and measuring progress, especially crucial for early stage startups. This phase focuses on identifying key performance indicators (KPIs) that align with the company’s strategic goals and building dashboards to monitor these metrics effectively. Ensuring departmental alignment and cross-functional adoption of the KPI/OKR framework will help maintain consistency and drive measurable success across the organization.

Performance Metrics

• Key Metrics: Identify the key performance indicators (KPIs) that are critical for measuring the business's success.
• Relevance: Ensure these metrics are relevant to the company's strategic goals and provide actionable insights.

KPI Dashboards

• Focus Areas: Build dashboards to monitor crucial business areas and track performance against KPIs.
• Visibility: Ensure these dashboards are easily accessible and understandable for all stakeholders.

Departmental Alignment

• Cross-functional Adoption: Highlight the KPI/OKR process to other department leads to ensure alignment and consistency across the organization.
• Replication: Encourage other departments to adopt similar frameworks to monitor their performance effectively.

Investor Relations & Fundraising (Days 60 to 100)

As you approach the final phase of your initial 100 days, focus on strengthening investor relations and leading fundraising efforts. By engaging with investors and understanding their perspectives, you'll be better positioned to leverage their support for future funding rounds. Additionally, by enhancing the company’s financial framework, you'll ensure the stability needed for continued growth and success.

Investor Insights

• Current Sentiments: Develop a clear understanding of current investors' feelings about the company's performance and prospects.
• Feedback: Gather feedback from investors to identify areas for improvement and potential opportunities.

Leverage Investors

• Follow-on Rounds: Explore how current investors can support follow-on funding rounds.
• Introductions: Utilize investors' networks to gain introductions to potential new investors or strategic partners.

Fundraising

• Capital Structure: Optimize the company's capital structure to support growth and stability.
• Lead Efforts: Take the lead on fundraising efforts, ensuring the company secures the necessary capital to achieve its goals.

Operational Improvements (Days 50 to 100)

With the foundational elements in place, this phase focuses on refining and optimizing operational practices to drive better performance. Work on improving the efficiency of financial processes and increasing the reliability of your reporting. Take steps to manage cash flow more effectively, ensuring that the company has the necessary resources to operate smoothly and anticipate future financial needs. Additionally, evaluate and integrate new technology solutions to boost operational efficiency and scalability.

Process Streamlining

• Efficiency: Streamline financial processes to improve efficiency and reduce redundancy.
• Accuracy: Enhance the accuracy and reliability of financial reporting.

Cash Flow Optimization

• Working Capital: Optimize cash flow management to ensure the company has sufficient working capital to meet its needs.
• Forecasting: Implement robust cash flow forecasting to anticipate future cash needs and manage liquidity effectively.

Tech Assessment

• Technology Needs: Identify the right technology solutions to support the business's financial and operational needs.
• Implementation: Assess and implement new technologies to enhance efficiency, accuracy, and scalability.

Building Finance Teams (Days 50 to 100)

As you conclude your initial 100 days, focus on shaping a robust finance team to sustain and drive ongoing success. Begin by assessing the current team, then recruit new talent and restructure the team to enhance performance and align with strategic goals. Cultivate a positive, collaborative culture that embodies the finance team’s values and mission, setting the foundation for future growth and excellence. This final phase will ensure that your finance team is well-equipped and motivated to support the company’s long-term objectives.

Team Evaluation

• Capability Assessment: Evaluate the current finance team’s capabilities to identify strengths and areas for development.
• Skills Gaps: Address any skills gaps through training, hiring, or restructuring.

Recruitment

• Talent Acquisition: Recruit new talent as needed to build a high-performing finance team.
• Team Restructuring: Restructure the team to ensure optimal performance and alignment with strategic goals.

Culture Building

• Internal Culture: Establish a positive, collaborative internal culture that embodies the values and goals of the finance team.
• DNA of the Team: Define the DNA of the finance team to guide behavior, decision-making, and performance.

A successful onboarding process for any C-suite hire, especially a CFO, is absolutely critical. By following this structured approach, a new CFO can make a lasting impact and set the startup on a path to sustained success.

If you require further support during your first 100 days or are looking to build out your team, we are here to help. Connect with us to find expert guidance and top talent to ensure your finance team thrives.

As an expert in partnering with early-stage tech start-ups, feel free to get in touch if you require advice or are keen to hire that first or even second person for your finance function.

Check out some of our other blogs you might find useful:

• Beyond Finance: The Strategic Approach to a CFO's First Weeks
• Startup finance structure : Build successful teams
• Salary Guides: Insights from the UK and New York
• How Can AI Help CFOs Make Remarkable Impact?