It’s a lot easier to be a CFO when a company is growing, it’s just plain difficult during an economic downturn.
Pair that with the fact that CFOs are always looking for ways to be efficient: achieving the maximum amount of growth with the minimal amount of resources.
That’s why this particular economic climate is when the great CFOs will truly shine. That’s because if you structure your company correctly now, when the economy enters a growth cycle again, both you and your company will be very well situated.
The Time is Now
According to Gartner, “successful companies fund innovation by powering through economic turns and uncertainty.” They found that a select few companies (just 60 of the largest publicly traded companies in the U.S. and Europe during the recession of 2008-2009) take advantage of recession or other periods of uncertainty or volatility—like now. These companies powered through uncertain times and ended up leaving the competition in their wake while continuing to sustain their gains for the decade that followed. “Winners spur innovation, change strategy and take risks, while others are eaten away by conservatism and cost-cutting.”
The mindset and actions of business leaders—including CFOs—before, during, and after uncertain times helped separate their organization from the pack and determined its long-term destiny. And this can be you.
But even if you know now is the time to pivot, what’s the best way to do so?
We recommend implementing a CPQ solution if you haven’t done so already.
Efficiencies of CPQ
Seeing as CFOs are constantly in an efficiency mindset, a CPQ solution is a perfect fit as it offers numerous efficiencies. Let’s take a look at a few.
Back Office Efficiency
When it comes to back office efficiency, a CPQ solution can provide cost savings by reducing both the need to add incremental headcount as well as operational leverage. A CPQ solution can do the manual calculations and deal desk operations you might be paying folks to do for you. Instead of adding sales support for every sales person, why not just add a sales person and lower your CAC!
If you realize that your company can’t quote correctly—and that this is directly impacting your business—then it’s time to make a change. A CPQ system that’s enterprise-grade and custom-tailored to your business needs means you’ll no longer miss the boat on quotes nor lose those points in margin, directly resulting in a boost in efficiency because your people will be quoting correctly. We all know how easy it is to have an error in an Excel formula that translates into a BOM issue. CPQ is proven to take the risk out of that by reducing errors and improving margin 1% (TEI Forrester study).
Sales Cycle Acceleration
First mover advantage is key in a quote cycle, so why the need to wait for an approval if its in your approval box? CPQ allows you to do just that: set automatic approvals, create work flows with reminders, and track progress. CPQ is proven to accelerate sales cycles, so says Forrester to the tune of 70% per year.
At FPX, we understand that CFOs aim to drive efficiencies and achieve the maximum amount they can for the least amount of money. There are always other areas of your business that need financial resources, so if a CFO can squeeze dollars out of every situation, they’ll have more for reinvesting in the growing business, their investors, paying down debt or simply having more cash on the balance sheet during uncertain times.
Eventually, you’ll see that your CPQ solution is providing you with that efficiency you crave, bringing the company so much quality at the right price point that you’ll be looking for opportunities similar to CPQ to implement next!