How Much Should CFOs Spend on Security?
Welcome to another weekly financial digest! Here’s what you need to know from the past week:
- Slack has officially gone public. They followed in Spotify’s footsteps by going with a DPO over an IPO. Will more companies start doing this?
- According to the WSJ, CFOs are struggling to figure out how much to spend on cybersecurity.
- Zoom, another newly public company, has beautiful numbers. That also explains why their IPO was a massive success.
Let’s get on with the content!
CFOs Grapple With How Much Cybersecurity Spending is Enough
Cyber threats are becoming a very real risk for most companies. The problem is making sure you fit enough room in your budget to account for security upgrades to internal systems and software.
According to the WSJ, this is a very real problem for CFOs. You don’t know everything about cybersecurity, so how are you supposed to know how much to spend on it?
A strong relationship with IT will help, but that’s not always enough. The best solution is to trust the people around you to make those decisions. Fitbit, for example, has an internal cybersecurity group that focuses on developing a cyber strategy and budget.
The Modern CFO’s Tech Stack for Startups
Marketing and engineering teams aren’t the only ones who use tech stacks to run their departments. Tech stacks might not be as talked about in finance, but I’d argue that your finance tech stack is more important.
So what should CFOs and fractional CFOs have in their financial tech stack? A few ideas:
- Accounting software like QuickBooks, Freshbooks, Netsuite, or Zoho.
- Payroll software. You need to make sure your employees get paid on time. Gusto, Namely, and ADP are good options.
- Billing software because you need to send invoices and receipts. QuickBooks can handle this, but so can Bill.com and Chargebee
- Customer payment processing software. You can’t run a modern business without payment process. Stripe, Recurly, and PayPal are all good options.
Get more insight on these tools at Proformative’s blog.
Unpacking Zoom's Unheard of Growth
Zoom has done some incredible things as a company. Their stock price skyrocketed since IPO, going from $62 to over $100. They’ve had insane year-over-year revenue growth, and they’ve done it at a huge scale. But best of all? They’re profitable.
How have they done it?
Lola.com’s CEO, Mike Volpe, and I sat down and combed through Zoom’s S-1 to figure out how they’re pulling it off. We recorded our conversation. You’re going to want to tune into this one.
10 Traits of Good Bosses (According to Google)
Google spent a few years trying to figure out if managers actually matter in organizations. Their discovery wasn’t shocking. Good managers make a huge difference in employee performance when compared to poor managers.
Through all of their research, they found 10 behaviors that most good managers have. According to Google, good managers:
- Are good coaches
- Empower and don’t micromanage their teams
- Create inclusive environments
- Are productive and results oriented
- Are good communicators (listening and speaking)
There are still 5 more traits. Head over to Google’s Rework website for the rest.
Although it wasn’t an IPO, Slack had a good first day of trading. The company’s value went up 48.5% on day one. Slack, unlike Zoom, is hugely un-profitable though so take that into consideration if you’re thinking about buying in.
Related: Spotify’s CFO thinks the traditional IPO is “moronic.”
There aren’t many noteworthy IPOs this week, and they’ll be smaller compared to Slack. The majority are priced between $13 - $20 per share.