There are only two types of CFOs. I was speaking with a good friend yesterday about this topic.

What do I mean?

The first is the cost-oriented CFO.

They don't care what you are investing in. If it doesn't hit their margin targets, they will cut it anyway, or won't fund it to begin with. They invest in what they are familiar investing in. When it comes time to cut costs, they focus on the biggest line items, not the least strategic areas.

This CFO often truly does not understand the market and the industry and why customers value the company's products.

The watchword of this CFO is "we can't afford to invest in this."

The second is the investment-oriented CFO.

They understand that the only reason they are really there is to partner with their fellow business leaders to grow and transform the business. If a new risky project is not yet hitting its margin targets, it doesn't matter as long as other non-financial metrics are showing progress. This CFO wonders what else the company could be investing in to move levers that they know can transform the balance sheet.

This CFO is not only a good partner to the business, business leaders appreciate a good "counterbalance" to their starry-eyed innovation ideas, but one that still has a positive investment-oriented mindset.

The watchword of this CFO is "we can't not afford to invest in this." Seeing positive results, they might ask questions like "what would you do with more money?"

In particular if you are a joining a management team, understanding the investment footing of the CFO is critical.

#ecommerce