Investing In the Growth and Innovation of the Business

Investing in the growth and innovation of the business while also being cost conscious is one of the trickiest aspects of a CFO’s job. It starts with understanding the company’s financial limitations and setting the spending guidelines upfront. From there, it becomes a process of understanding the business impact and financial return from various investments and choosing those that have the most impact. In our business, investing Investing in the growth and innovation of the business while also being cost conscious is one of the trickiest aspects of a CFO’s job. It starts with understanding the company’s financial limitations and setting the spending guidelines upfront. From there, it becomes a process of understanding the business impact and financial return from various investments and choosing those that have the most impact. In our business, investing in our merchandise assortment to stay relevant for the customer is critical to our long-term success. We are also investing in our store base to open new stores and renovate existing stores. While these investments are vital to the long-term success of the business, the CFO must be sure these investments are delivering the expected return and profitability. When unexpected projects arise, priorities have to be set and tough choices may have to be made, but always with an eye towards what is really needed to innovate and grow the business. The CFO must be part of the decision-making process before investments are made. This includes analyzing the expected returns, helping the business adjust the plans to maximize returns and assessing the performance afterwards. It is a delicate balance of investing to grow a business, while doing that within the financial constraints of the company. Sometimes, it’s more an art than science.