Originally Published MX May/June 2001

Finance

A special breed of CFOs can make small-company ventures pay off big.

Stacey L. Bell

To survive, small companies must do everything in a big way, including finding financial talent that will help them meet today's demands while growing the organization into tomorrow's Johnson & Johnson. Finding the right financial whiz can be a challenge.

"The first thing a start-up company needs to decide is its exit strategy," says Joseph Mullings, president and CEO of The Mullings Group (Norwalk, CT, and Del Rey Beach, FL), an executive search firm specializing in pharmaceutical, biotech, and medical device firm hirings. "Are you going to go public, get acquired, or remain private? The answer to that question dictates the type of CFO you bring on. Too many companies try to play all three fronts, but failing to decide can kill a company—the burn rate (how much money it costs to operate the business versus how much money is in the bank) can cripple you."