Bohemia, NY (PRWEB) October 25, 2013
Lawrence Teicher, founder of CFO Consulting Services, responds to an article published by The New York Times on October 11th, which discusses the need for startup businesses to concentrate on profits first rather than focus on growth.
According to the New York Times article titled “Taking the Path of Profits Over Growth,” many investors push companies to grow instead of building profits to sustain the company. The article says these particular investors usually believe fast growth translates to large profits and market value. For some companies, this theory could ring true, but for most, this could lead to a swift downward spiral.
Businesses without a significant amount of cash flow typically do not survive, especially in a failing economy. “Without profits and cash flow, businesses have a more difficult road to long term viability,” the article says.
Lawrence Teicher, founder of CFO Consulting Services, a CFO services company says a company cannot grow unless it has a sufficient amount of capital and cash flow behind it.
“Business owners who push their companies to grow right off the bat usually end up in a troubling financial situation,” he says. “Startups that fail often have this problem in common. They give too much power to the outside investors. Building and retaining profits allows business owners to call the shots instead of depending on investors that will ultimately dilute the owner’s equity. When investors are too entwined in your business proceedings, you run the risk of losing your entire company. Worry about adequate capital and profits first, and hire a part-time CFO to manage and control your business’ growth.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by Long Island CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.