I have worked for fast growth and start-up businesses since 2006 and I probably will for the rest of my career.

I have found that they all have a very unique culture being founder led and fast paced.
For those who have moved to this world from an accounting firm or switched industries, it can be quite a change and sometimes, even a culture shock.

But what is a start-up or fast growth business?

A start-up or fast growth business is a new company that aims to grow rapidly by developing a unique product or service, creating a new market, or disrupting an existing market. Which is why they can be quite exciting.

Start-ups are often very small, with a small number of employees, and are typically founded by entrepreneurs who have a strong vision for their business. They are also often characterised by their agility and ability to quickly adapt to changing market conditions and customer demands.

The main purpose of a start-up is to grow quickly and become a successful business, by generating revenue and by attracting investment that will help them scale their operations. Start-ups are often focused on solving a problem or filling a need in the market, and they use innovation and technology to create a new solution. They are not afraid to take risks and pursue untested business models, as they believe that their innovative ideas will pay off in the long run. Generally, the first goal of a start-up is to find Product Market Fit (PMF).

Fast growth businesses are similar to start-ups, but they are companies that have already been established and are growing rapidly. They have already achieved their PMF. These businesses are called “fast growth” largely due to their high revenue growth, expanding customer base, and increasing market share. They are typically in high-growth industries, such as technology or e-commerce, and they often have a strong online presence. It isn’t unheard of for a fast growth businesses to have 100 – 300% year on year growth.

Start-ups and fast growth businesses face a number of challenges. These main issues are fundraising (equity or debt, or both), attracting and retaining skilled workers, developing a strong brand, and building a strong business model.

Fundraising is such a big part of a start-up and fast growth business. Not only do they need to get significant funding to launch the business, but they also need to keep fundraising until they get Product Market fit as well as funding the growth they need to achieve before becoming a profitable business or exit. This can take many years.

They also need to attract and retain talented employees who are passionate about the business and its goals, and who are willing to work hard to make the business a success. This can be challenging when the business doesn’t have a product yet, is pre-revenue or doesn’t have an established brand. Plenty of workers aren’t interested in working for a business that has substantial risks, or is very changeable and fast paced.

In order to succeed, start-ups and fast growth businesses also need to develop a strong brand that resonates with their target market. This requires a deep understanding of their customers and the market, as well as a clear brand positioning and messaging. This can take quite a lot of time and cash to achieve.

Finally, start-ups and fast growth businesses need to develop a sustainable business model that will allow them to grow and scale their operations over the long term. This requires a deep understanding of their customers, their industry, and the market, as well as a clear understanding of their costs, revenue streams, and margins. They need to create a business model that is flexible, adaptable, and scalable, and that can withstand changes in the market and customer demands.

So how do these unique businesses affect a Finance leader and their role?

As a Finance leader, the above challenges or goals of a start-up or fast growth business need a strong focus and understanding. Because of these challenges, working for these smaller businesses are quite different to an accounting firm or a large corporate.

One of the biggest differences is the speed at which decisions must be made. Start-ups and fast-growing businesses often require quick decisions in order to take advantage of new opportunities and stay ahead of the competition. This means that finance leaders need to be able to quickly analyse and understand financial data, identify trends and risks, and provide actionable insights that can inform strategic decisions.

A good point of reference is to make fast decisions on things that can be reversed and take time on decisions that can’t be.

Another key difference is the level of risk involved. Start-ups and fast-growing businesses are riskier than large and established corporations, as they are more likely to face uncertainty in their fast growth. Finance leaders therefore must be able to assess and manage risk effectively, taking into consideration the need for growth with the need to maintain cash runway. This is a real balancing act and needs real cooperation with all of the business leaders and founder.

In a start-up or fast-growing business, finance leaders also need to be more hands-on and involved in the day-to-day operations. As well as the finance department and being key in any fundraising efforts, it isn’t unheard of a finance leader managing and being responsible for procurement, HR, office administration, legal and even Business Intelligence or analytics.

Another important difference between finance leaders in start-ups and fast-growing businesses versus those in corporations is the need for flexibility. These businesses are constantly evolving and changing, and finance leaders must be able to quickly adapt to new challenges and opportunities. This sometimes means that there is a requirement to be comfortable with uncertainty and ambiguity. Which is a stark difference to an audit role and can make some finance leaders uncomfortable when transitioning to this industry.

Finally, finance leaders in start-ups and fast-growing businesses must be strong communicators and collaborators. They must be able to effectively communicate financial information and insights to a wide range of stakeholders, including management, employees, investors, and partners. In addition, they must be able to work closely with other departments and teams, such as sales, marketing, and operations, to ensure that the business is working towards its goals. Once again business partnership is incredibly important.

I have found that finance leaders either love this crazy world of start-ups and fast growth businesses or they don’t. It is unique and it doesn’t suit everyone. If it suits you and your personality and skills, then enjoy the ride. It can be really exciting and you will learn a lot very quickly!

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