A number of small businesses we review do not have a highly formal management structure. For some businesses, it’s common for the owner to handle many tasks relating to finances, employees, and scaling, so the formal business titles get conflated. When your small business grows and attracts more clients, it’s important to have a formal management structure to ensure productivity, efficiency, and more importantly, responsibility. Here is a list of explanations for the common management titles people encounter in businesses with explanations from a Global Resources LLC consultant:

Chief Executive Officer (CEO) – Most people already know what a CEO does. In a nutshell, the CEO is the chief strategist of the company who oversees everything. CEOs are responsible for hiring senior staff, authorizing the allocation of various resources, overseeing money matters, and essentially becoming the face of the company. The CEOs of small businesses are often the founders and owners of the companies.

Chief Operating Officer (COO) – The COO takes care of a company’s overall operations. The “operations” here will differ depending on the nature of the business. If the small business is a clothing store, for example, the COO will be the store manager. Some small businesses have CEO and the COO positions being held by the same person. But as the business expands, this would not be an ideal situation.

Chief Financial Officer (CFO) – This is the person who is responsible for all financial matters of the company, but reports to the CEO. It’s highly recommended for all small businesses to have a qualified CFO if the CEO is not experienced in financial management. A CFO is usually someone who has a degree in finances and really knows what they are doing.

Chief Marketing Officer (CMO) – This is a management title that’s popped up rather recently. Companies with large marketing strategies sometimes hire a senior manager to oversee all operations and manage the budget. Not all companies need a CMO, but it’s recommended to have a qualified marketing person overseeing the strategy.

Chief Technology Officer (CTO) – The CTO is not the IT guy. The CTO is a qualified manager who stays up to date on latest tech trends and finds ways for the company to adopt these trends. CTOs are responsible for keeping a business technologically advanced. If you run a tech-oriented small business, it’s recommended to hire a CTO.

When conducting Global Resources Reviews we often find that senior management is lacking a qualified financial manager or a CFO. Most small businesses do not have trouble handling day-to-day operations, but finances are another matter. You can contact us to find out how to properly structure your company’s senior management.