Here are 7 deadly CFO Horror Stories along with my best CFO tips to implement in your business, so you can BUST these terrifying ghosts

What better time of the year is there than October to share all of my most terrifying CFO Horror Stories? And today, I’ve rounded up the spookiest of these tales for you (all true!) — along with my best CFO tips to implement in your business, so you can BUST these terrifying ghosts.

Because, after all, when it comes to financial ghouls and goblins...

As an experienced CFO, I’ve seen a lot in working with my clients, and many of the horrifying trials they’ve gone through could absolutely have been avoided with the proper systems and support in place.

But as they say, you don’t know what you don’t know. So today I want to share with you what I do to help you avoid the same fates as some of these small business owners.

7 Deadly Horror Stories and the CFO Tips You Need to Survive Them

#1 Drowning in Toxic Debt 

Too much debt is a terrible burden for a small or growing company — because it ties up the cash you would otherwise use to fuel your growth. But TOXIC Debt will literally rob the cash out of your bank account and leave your business with nothing! 

The good news is you can protect against toxic debt with these 4 CFO Tips...

✔️ Seek expert help when considering taking on debt for your company.

✔️ Get multiple offers on loans or other debts. Don’t just assume the first offer you find is the best or only option.

✔️ Know the costs for your business and understand the terms of your loan. How long will it take you to pay the debt off? What opportunity costs are you losing? Is the debt going to keep your business from being profitable? (Hint: if the costs aren’t obvious and understandable don’t take the loan! Its probably a bad deal.)

✔️ Avoid confession of judgment. Signing a confession of judgment is the same as waiving your rights to counter any legal action taken by your lender, which can be deadly to your bank account. Read the fine print in any loan agreement, and refuse any that include a confession of judgment.

#2 Risky Decisions 

In business, risk is unavoidable if you desire to grow. But risk without preparation is truly a "doom and gloom" situation. So how can you avoid the pitfalls that come with it?

By doing a risk assessment! 

Here are the steps to doing your very own risk assessment...

✔️ Brainstorm the things that could go wrong

✔️ Sort your list into risks you can eliminate & ones you have to manage

✔️ Score the ones you have to manage based on probability, impact, & control

✔️ Pay the closest attention to the risks most likely to happen & that will have the greatest impact

✔️ Identify ways to make those risks less likely and less impactful

✔️ Come up with your backup plan if they DO happen

#3 Guts Everywhere!

Your gut instinct & your cognitive biases are constantly trying to steer your brain 🧠 in the wrong direction! So, why is that, and how can you stop it?

Here’s the thing...your brain is wired to look for ways to make life easier for you. It’s searching for shortcuts. Often those shortcuts aren’t helpful. In fact, they are usually the opposite! 

Use this CFO Tip to keep your guts — and your business — where they belong...

A way to combat this is to be aware of your biases going into a crossroads decision & most importantly to have structured decision-making processes built into your business.

#4 A Fatal Mistake

Once upon a midnight dreary...your computer died unexpectedly and you lost 20 years of accounting work that wasn't properly backed up. #truestory 

What is scarier than that?! 

CFO Tip to save the day AND your data...

This tip is probably an obvious one, but with current technology, you really need to back everything up. Best practice is to both have a hard copy backup on an external drive AND saved to an online/cloud-based storage. That way you’re doubly protected in the event of any disruptions.

There are lots of amazing options to do this safely, and if you are overwhelmed, a CFO, like yours truly, can help! 

#5 Swept Up in a Tornado 

Have you ever found yourself spinning round and round, unable to make a decision in your business?

 The damage can be catastrophic and can leave you stuck & helpless as the rubble piles up around you. 

So, how do you avoid the cyclone of uncertainty & poor decision-making? 🌪️ 

Follow these CFO tips to stop the tornado in its tracks...

✔️ BREATHE! Take a walk, go to a coffee shop... Find a place to get some air & refocus on why you started your business in the first place.

✔️ Once you’ve reidentified your “why” & know your direction, start taking small, decisive action every day. Don’t put it off!

✔️ Don’t try to do this alone. Find a mentor, a peer, or someone who can support you.

#6 The Haunted House

You're watching a movie, & the character is about to open the creaking door to a dark, creepy house.  You yell, "Don't go in there!!" But you know they will.

You have the foresight to know that wandering blindly into a scary mansion is a bad idea, so why would you enter into business without a solid financial plan? 

The answer may seem obvious, but it happens all too often. So how do you guard against this fatal mistake?

Here are 4 powerful tools to use...

✔️ A vision statement 

✔️ A financial strategy

✔️ A cash management plan

✔️ Key performance metrics 

#7 A Knife in the Back

Believe it or not, a dark, dangerous secret could be lurking in the shadows of your business...

When a trusted, long-term employee in charge of your company's payroll boosts their pay and donates paid time off to themselves, you know you're in trouble. #truestory

Could this happen to you? 

Don't let this or other lurking horrors leave you scared and unsure of where to turn.

Avoid This Horror With Another CFO Tip...

Putting the proper controls and systems in your business is essential to avoid fraud.

Also, as a business owner, you need to have an understanding of the backend of your business and your finances, even if you’re not the one managing them day in and day out.

How can you gain a deeper understanding of your finances and equip yourself with even more tools and support to avoid these tragic fates?

I’m super glad you asked!

Join Meaningful Money. Our Meaningful Money program gives you expert guidance as you put our financial framework in place quickly, starting with Profit First implementation.  You’ll continually hone your financial knowledge and skills and maintain accurate and up-to-date information in an efficient and seamless process.

The Meaningful Money program provides CFO support through a mix of two short courses and ongoing community support. Learn how to manage your finances, boost profits, and upgrade your financial decisions based on meaningful information.

If you want to know if it’s the right choice for your business... Let’s talk!