Jesse, Thanks for the comment. I agree that a part-time controller for a start-up (as opposed to a CFO) is a good idea. Tatum is probably not a good example of this service as their minimum size requirements – both in terms of the engagement and the company – would preclude most start-ups. Many investors have well-developed relationships with local accounting firms who provide such outsourced services. This approach has duel benefits. First, the question of financial controls and record keeping is covered and second the accountant provides additional and much needed adult supervision to the company. As a company grows, the need for an expanded financial and accounting staff can also be met by outsourcing. A company like Neosystems – http://www.neosystemscorp.com – can provide that. But, in the end, a company needs to begin building internal capabilities as early on as possible. Dr. Smith

I agree with David about having a CFO or part-time CFO. The CFO is a crucial member of the executive team if the startup has not done so already. Tatum LLC is a good company of former CFOs for hire at a reasonable cost as many of them are looking for the next company that they want to help advance to the next level and possibly join in as full time CFO in the futue. Having good legal counsel is also imperative as the executive team can sometimes act impulsively without thought of any legal ramifications.

I agree with David about having a CFO or part-time CFO. The CFO is a crucial member of the executive team if the startup has not done so already. Tatum LLC is a good company of former CFOs for hire at a reasonable cost as many of them are looking for the next company that they want to help advance to the next level and possibly join in as full time CFO in the futue. Having good legal counsel is also imperative as the executive team can sometimes act impulsively without thought of any legal ramifications.

I know it’s a little self-serving, but adding a part-time CFO to the mix makes a lot of sense. Chances are no one is focused on financial visibility, key metrics or internal process. These all help with transparency and in building value. The part-time CFO is an independent advisor who has a detailed knowledge of the business model and objectives, and can design systems to keep things on track.

I know it’s a little self-serving, but adding a part-time CFO to the mix makes a lot of sense. Chances are no one is focused on financial visibility, key metrics or internal process. These all help with transparency and in building value. The part-time CFO is an independent advisor who has a detailed knowledge of the business model and objectives, and can design systems to keep things on track.

Some best practices I would suggest are:
1. Invite the executive team of a portfolio company to a quarterly meeting. Either at a restaurant or at the office.
2. Request a quarterly update which is as detailed as possible.
3. Stay in touch with a point person on the executive team. Keep asking, “What can I do to help?”
4. Really follow through on helping when asked.
5. Take some time to go through your network list. Think about people in your network that might be good contacts for your portfolio company and make the introductions if appropriate.

Some best practices I would suggest are:
1. Invite the executive team of a portfolio company to a quarterly meeting. Either at a restaurant or at the office.
2. Request a quarterly update which is as detailed as possible.
3. Stay in touch with a point person on the executive team. Keep asking, “What can I do to help?”
4. Really follow through on helping when asked.
5. Take some time to go through your network list. Think about people in your network that might be good contacts for your portfolio company and make the introductions if appropriate.