A recent newspaper article featured a company near my home. It was a start-up in a business segment close to my heart, one which is technical in nature. Because there was a ‘Green’ aspect to its activities, it had begun to stimulate attention in the press. Like many new ventures they needed financial guidance and investment, so I offered my services. I have experience as the CFO of a publicly traded company, and I thought my initial discussions with the CEO and VP of Sales went quite well.

I signed an NDA, then received their business plan and other legal documents. The plan showed where they wanted end up, but did not explain how they would get there. What little financial information was provided was very elementary and lacked supporting detail and credibility. I thought their production time-line was unrealistic, considering where they were in the development process. They readily admitted their plan needed help, but being focused on the product development phase, they had set it aside.

I asked this new company some probing questions about their choice of technologies, the target market and plans to raise capital. I must have hit a nerve. Their answer was, “We don’t need people that question our vision; we need people to execute our vision.” Frankly, I was disappointed. Every CFO needs to challenge executive assumptions, the team’s decisions and strategies, in order to effectively present them to potential investors. Certainly a knowledgeable investor would ask similar questions. While focusing on development is critical, it’s not the only thing. Attracting investors is a major responsibility of the entire executive team, and in particular the CEO. To help CEO credibility, a CFO needs to be well-informed and to remain objective. CFOs are best equipped to present your case to investors on behalf of the executive team, just like lawyers are best equipped to present your case in a court of law.

Attracting investment can be like rabbit hunting. Not much there. After you shoot the rabbit, skin it, and cook it there is not enough meat to feed the family. Times are lean. The investment community today is much different than it was ten years ago. Start-up plans were done during a lunch meeting. Rules were lax. That is no longer the case.

I recently met with a private investment firm who explained they had stopped investing in start-ups and early phase companies. In their eyes, start-ups were too risky and took too long to mature. These days they look to invest in companies that are more maturealready up and runningand running well. They also examine the whole enterprise in greater detail, and it really does not matter what industry, but a company must have established itself and be up and running to attract their attention. It does not have to be high tech, biotech or anything “sexy”. They want to invest in good companies, help them to grow and become better, thus increasing in value. So a company that demonstrates good performing internal processes is much more attractive than one that is a mess and requires a lot of attention to fix – even if the potential downstream opportunity is better.

The current situation on Wall Street makes things more challenging. Many investors have pulled out of the market and are waiting for things to calm down. The mortgage crisis has been festering for a while and many were surprised that the government jumped in with a huge bail-out program. The rapid rise in the cost of energy means we can no longer delay the adoption of aggressive energy conservation policies or more efficient transportation systems. General Motors, Ford, and Chrysler were the cornerstones of the U.S. economy for many years, but they are in trouble. For them to survive, they need to quickly re-engineer themselves. This will affect many suppliers and related businesses in a matter of months, and makes it all the more critical to have well rounded, cost effective business processes. Everyone will be looking for capital. How will you differentiate yourself to investors?

So the point is clear.the executive team must keep their eyes on the ball, manage the whole business, in order to successfully grow and reach the next level. This is nothing new. This is where the people at Thomas Financial Services (www.thomasfinancialsvcs.com) can help. They have the experience and knowledge to analyze, create and roll out the roadmap for a stronger and more efficient company through the development of internal processes such as finance, accounting, planning, forecasting, internal controls, project management, and the whole customer experience.

Lots of great ideas die on the vine. Companies implode for the dumbest of reasons. The biggest and oldest banks and investment houses of our time are falling in on themselves over simple missteps that could have been easily avoided. It’s not about oversight, it’s about execution. CFOs and their credibility with investors make a huge difference. Chief executives who are at odds with their CFOs are a red-flag warning for any company. Run from them. Listen to your CFO. Stay on track. Execute to a realistic plan and you’ll never lack for investment. Plenty of companies are liked, but few are admired. Be one of them.