Starting a new job in a new industry as a finance leader can be a daunting task, but it also presents a great opportunity to make an impact.

If you're moving to a Startup or Fast growth business for the first time, take a look at the nuances of working for this industry and take these specific things into consideration too!

Here are 8 steps for finance leaders looking to make a successful transition and hit the ground running in a new industry.

1. Do your research

Before starting a new job in a new industry, it's important to do your research. This means gaining a deep understanding of the industry, the company, its competitors, and its customers. You should read industry publications, research market trends, and analyse financial reports to gain insights into the company's financial health.

In the UK, you can easily go to Companies House and download the abridged financial statements (if you didn't do this already in preparation for the interview!).

Taking a look at competitors also gives you a good feel for the industry and what your new company is up against.  This will help you understand your new company's risk with their competitors as well as pricing.

Going through your new companies social media, website and any articles written on the company also gives you a good feel for the company's brand and how the company wants the public to see them.

If the company is regulated (eg: financial regulation such as the UK's FCA), it's also a good idea to take a look at what the company needs to adhere to and what barriers or challenges it faces with being regulated.

2. Build relationships

Relationship building is a critical aspect of any leadership role, but it's especially important when starting a new job in a new industry. Take the time to get to know your team, your colleagues, and your stakeholders.

Attend industry events, meet with vendors and suppliers, and establish connections with key players in the industry.

Or if you're moving into a new type of business model, such as SaaS - get to know other finance leaders that also work for these kinds of businesses.  These relationships will become invaluable over time.

3. Understand the business model

It's important to understand the business model of the company you're working for, and how it generates revenue. This will help you identify opportunities to optimise financial performance and make strategic recommendations.

It will also help you with practical things such a budgeting and forecast modelling.  If you don't really understand the drivers of revenue, then it is difficult to model accurately or give sound advice.

4. Focus on cost optimisation

One of the most important responsibilities of a finance leader is to optimise costs and extend runway. Identify areas where costs can be reduced, such as through process improvements or outsourcing non-core functions. Implement a cost optimisation strategy and work with the team to drive cost savings.

Extending cash runway is such a big part of startups and fast growth businesses and managing costs and allocating resources efficiently is half of the battle.

5. Drive innovation

As a finance leader, you should be constantly looking for ways to innovate and improve the financial performance of the company. This could involve implementing new technologies or processes, introducing new financial products or services, or exploring new markets.

Looking at inefficient processes (especially if you come from a more efficient company) can be a quick win.  Reducing cumbersome processes is often welcomed, especially if you work with your colleagues.

6. Communicate effectively

Effective communication is key to success in any leadership role, but it's especially important when starting a new job in a new industry.

Be clear and concise in your communication, and make sure you're listening to the needs and concerns of your team and stakeholders.  Listening can often be underrated, but is more important when you're new or in a new industry or both!

7. Build a strong team

Building a strong team is essential to achieving success as a finance leader. This means hiring the right people, setting clear expectations, and providing ongoing feedback and support.

Empower your team to take ownership of their work and provide them with the resources they need to be successful.  

If your team is successful, then you as a leader are successful.  Really get to know your team and ensure that they know what they need to do.

8. Focus on long-term value creation

As a finance leader, it's important to focus on creating long-term value for the company. This means taking a strategic approach to financial management, and making decisions that will benefit the company in the long run, rather than focusing solely on short-term gains.

Look at what the bigger vision is for the business or the 1-5 year goals and ensure that you keep these at the back of your mind when making change recommendations or suggestions.

Starting a new job in a new industry as a finance leader presents a great opportunity to make an impact. By doing some initial work, you can really start on the right foot and demonstrate your value quickly.

If you wanted to learn more about starting in a new leadership role, take a look at a book recommendation I make here.

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