Growing a business is thrilling, but it also creates complexity. This short quiz will help you evaluate if your business could benefit from the expertise of a CFO (Chief Financial Officer) or a COO (Chief Operating Officer).
Instructions: At the end, we’ll provide insights into whether hiring one of these executives might be the next step to propel your business further.
Quiz Questions*
- How would you describe your current financial reporting?
- I have basic bookkeeping, but don’t track profitability in detail.
- I have decent financial reports, but I struggle to understand all of them.
- I have robust financial statements that I use to make informed decisions.
- When it comes to financial forecasting and planning…
- I do this on an ad-hoc basis, mostly in my head.
- I have a yearly budget, but it’s rarely accurate.
- I create detailed forecasts and revisit them regularly to adjust my strategy.
- How confident are you in your company’s cash flow management?
- Cash flow is unpredictable – sometimes I worry about covering expenses.
- Cash flow is stable, but I know there’s room for improvement.
- I have a strong understanding of cash flow and actively use it for planning.
- Are you actively seeking funding or considering major investments?
- Yes, I need help structuring financial models and presentations for investors.
- Maybe in the future, but I’m not quite ready to approach investors.
- No, funding isn’t a priority right now.
- How well-defined are your day-to-day operations?
- Everyone wears many hats and things get done as they come up.
- We have some processes, but they need streamlining and better oversight.
- We have well-documented procedures and clear lines of responsibility.
- Is your long-term growth strategy clearly defined?
- I have a general direction, but no specific roadmap for getting there.
- My plan exists, but it needs refinement and financial feasibility checks.
- I have a robust growth strategy complete with financial targets.
Scoring & Results
Calculate your score by assigning points as follows:
- Answer 1 of each question = 1 point
- Answer 2 of each question = 2 points
- Answer 3 of each question = 3 points
Score Interpretation
- 6-10 points: Your business would likely benefit significantly from hiring either a CFO or COO, depending on your stronger areas.
- 11-15 points: There’s potential for a CFO or COO to provide value, but consider which areas of your business would see the highest impact.
- 16-18 points: You probably have solid systems in place, but a CFO or COO could be a strategic hire as you scale further.
Next Steps:
- Regardless of your score, consider scheduling a complimentary consultation with PRIME Business Advisory Solutions to discuss the specific needs of your company and determine whether a CFO or COO is the right next step
*Important Notes:
- This is a simplified quiz. There are many nuances to consider when hiring such key executives.
- A CFO primarily focuses on financial strategy, analysis, and reporting.
- A COO oversees daily operations, process improvement, and personnel management.