What’s a Chief Transaction Officer and Why You Might Want One
Thrift and hard work have defined your approach to building your company. When you first got started, some family members loaned you a small sum of money to get into business. You raced to get that loan paid off in less than 18 months. Since then, you’ve only used credit sparingly, and you’ve always paid your debts off early.
When it comes to your back office staff, you’ve applied the same approach. In particular, your accounting and finance function has all of the capabilities you need, but no more. They handle invoicing & accounts receivable, accounts payable & vendor payments, and payroll. Every winter, they send your CPAs what is needed to file your taxes. And, on occasion, they complete credit applications when you decide to finance an equipment purchase. With a healthy cash balance in the checking account your team is completely appropriate for the task at hand.
Lately, though, you’ve been turning your attention to some bigger questions. The status quo isn’t working for you anymore and you’d like to shake things up. You keep posing a question to yourself, “Should I grow this thing? Or should I sell the company and move on?” You’re just not sure, but you know it requires some exploration. Putting your head in the sand will only hold off the inevitable for so long.
When it comes to these questions, you need a different skill set from your current internal capabilities. Navigating through these waters is much different from your day-to-day accounting and finance processes. It might be time to think about a CTO (Chief Transaction Officer).
Interim Horsepower to See You to the Other Side
Evaluating these deeper strategic questions requires a skill set that includes both command of quantitative analysis combined with the know-how and experience to provide qualitative insights. You will only need these skills for a limited period of time, as long as it takes to conceive of and execute your strategy. When the new normal is reached, you will likely be able to return to your former processes or establish new ones that can be staffed by a new group.
In essence, you need a unique resource at this point in your company’s lifecycle, but without the expense of committing to such a headcount addition long-term. A CTO fits this need on the bullseye.
Your CTO is suited to stepping into businesses in transition, where change is a constant. This individual helps illuminate your options and guide you down the right path for your sake and your company’s future. Once you are safely guided out the other side, both you and your CTO will know. And the beauty of this is that your departure can be on good terms.
You will be ready to normalize your back office expenses, and your CTO will be ready to move onto their next project. This allows you to work collaboratively on the transition back to normal business as usual, while at the same time avoiding loss of critical knowledge gained through your organizational change.
All-in-all, retaining a CTO is a great option when facing a strategic crossroads.
Are you facing some important decisions related to the destiny of your business? Doescher Group was created to work alongside business owners at these critical moments. Whether you’re planning to grow or exit, reach out to determine if we can help guide you through to the other side.
