By Samuel Brealey wrote an article titled Marketers, it’s time to grow up and talk to Finance.
« The Finance team are the stewards of the business world, they take care of the money. Marketers are supposed to deliver it, they are supposed to drive revenue, they are there to identify sources of income and to get it through to the finance department. Which means marketers need to understand the basics of finance. Again, it doesn’t have to be complicated in-depth understanding. It just has to be a common language. »
« If marketing is framed as a cost, it’s expendable »
Alastair Thompson works as an outsourced CFO for a number of companies. He says: “be absolutely clear in their own minds about how they’re bringing in customers (or at least marketing qualified leads, if that’s how the process is structured), improving retention, generating referrals or whatever other business objectives the marketing has as that gives a solid basis for shared dialogue with the Finance Dept.”
« Finance are not as complicated as marketers think they are, their goals are summarised as follows:
- Healthy and predictable cash flow.
- Steady earnings growth, year after year.
- Increasing shareholder value or financial value.
- A credible story about future earnings to present to the CEO, board of directors and industry analysts.
- A defensible set of controls on company expenditures.
Marketing should be contributing in some way to all of these points. If Marketing isn’t, then marketers should take a look in the mirror and think about why. »