QUIZ: Is Your Business Ready for a CFO or COO?

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*

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.