Startup Growth
November 11, 2024

7 Lessons in Finance from a 7-Time Founder

7 Lessons in Finance from a 7-Time Founder
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Till CFO's Chairman and Co-Founder, Ben Chatraw, shares his hard-earned lessons below—read on to discover what the 7-time founder thinks are the most important financial lessons every business leader should know.

1. Use Your CFO for Offense, Not Just Defense

In my last startup, I wore the CEO and CFO hats simultaneously for nearly three years. Like many founders, I initially saw the CFO role as an overhead cost—just something to help free up my bandwidth. But hiring a full-time CFO transformed the trajectory of our business. Far from merely “keeping the books,” he restructured our capital stack, expanded our balance sheet, and played a vital role in our growth and ultimate acquisition. A strong CFO is an offensive weapon, driving revenue, earning investor trust, and creating leverage at every stage.

2. Excellence Begets Excellence

In startups, we become the sum of the people, processes, and systems we choose to surround ourselves with. Excellence attracts excellence, setting off a virtuous cycle that elevates everyone involved. This applies as much to financial systems as it does to people. Don’t build on sand. Lay a foundation of solid financial reporting, efficient processes, and high standards that inspire trust from investors and build resilience.

3. Know Your Capital Stack and Your Waterfall

Many CEOs I meet have a rough Excel of their capital stack but don’t know it. As founders, our equity is precious, and we must protect it by building a capital stack on terms we can live with, alongside investors who add real value. Be intentional and stay educated about how your financing will impact your future.

4. Structure Finance for Where You Want to Go

Think ahead—always. Finance systems built for today’s needs are outdated by the time they’re functional. Need to raise capital? Produce GAAP-compliant, audit-ready financials, and implement a financial tech stack, financial controls, and models at the level of the company you will be in 3 years, not just where you are today. This speaks volumes to investors and ensures you’re prepared for growth.  It’s also likely to get you a better valuation!

5. Your CFO: Thought Partner and Guardrail

Don’t confuse a CFO with a bookkeeper or controller. A great CFO is a trusted advisor, balancing your vision with pragmatic guidance. Invest in this relationship; it’s a partnership that sets guardrails, guiding your strategy and growth.

6. You Don’t Know What You Don’t Know

Operating without a CFO may feel fine—until it doesn’t. You might manage basic finances, but what happens when it’s time for an audit or acquisition? An experienced CFO anticipates what you don’t know, saving headaches and unlocking value that otherwise might go unnoticed.

7. Cash is King

In any startup, cash is lifeblood. Watch it like a hawk. Know your burn rate, runway, and cash flow at all times. If you can’t, ask your CFO to make it central to your KPIs. Cash management is the difference between survival and success.

At Till CFO, we understand the challenges of high-growth firms that cannot yet afford a full-time CFO. We offer a world-class finance team for companies in growth mode, providing expertise in accounting, forecasting, treasury, and strategic CFO services—because excellence in finance sets the foundation for excellence in everything else.