A quarter of a century ago, EFM founder Gary Jesson recognised a major challenge: many small and medium enterprises (SMEs) were struggling with inadequate financial management.

At this stage of business growth, finance was often improvised, handled by bookkeepers or team members balancing multiple roles.

Today, 25 years later, EFM has transformed the way SMEs manage their finances. In this piece, we celebrate the journey that has brought us to this point, and look to the benefits our clients and expert Associates can expect from us as we move forward.

How EFM Began: A Vision for Smarter Finance

With a corporate financial background, but having worked closely with SMEs, our founder knew that if these businesses could get affordable, flexible access to a Financial Controller (FC) for just four or five days a month – it would put them in a much stronger financial and operational position.

This "pay-as-you-go" approach empowered SMEs to maintain stronger financial health, keep banks and investors informed, and make strategic decisions with confidence.

Fast forward 25 years, and this outsourced financial management model has not only revolutionised SME finance but continues to evolve to meet new business challenges.

Growth Mindset and Entrepreneurial Spirit

From the start, Gary saw EFM as mirroring the qualities we encourage in our clients – innovation, entrepreneurship, a firm focus on growth, and with a clear strategy and business plans to take the business where we want it to go.

Resolved to offer the kind of proactive, operational Finance support SMEs needed day to day, Gary took the decision early on not to accept work that was narrowly compliance-focused, as this was not aligned with our strategy of adding maximum value to our clients’ businesses.

Equally, he invested quickly in growing our headcount, recruiting our first additional employee just a few weeks after securing our first client.

And in the same way we urge our clients to base strategic decisions on sound data, Gary worked on the basis of solid growth projections, born of his extensive connections to intelligence from investors, accountants, and small business organisations up and down the country.

Expanding Across the UK: A Nationwide Network

Leveraging strong industry connections, EFM quickly grew beyond its Bedfordshire/ Hertfordshire/ Buckinghamshire roots. By collaborating with trusted Finance Directors (FDs), we established a presence and regional offices in Newcastle and Manchester. 

A pivotal moment in EFM’s expansion came when Malcolm Holloway, EFM Co-Director, joined the business. Malcolm played a crucial role in scaling our operations, particularly in the North of England, where his leadership helped establish and strengthen our regional networks. Together, Gary and Malcolm developed a hybrid model of employed FCs and bookkeepers combined with an Associate FD network—offering clients affordability and reliability while maintaining efficiency. Today, our North-West network is one of the largest outside London, a testament to the strategy and leadership driving EFM forward.

Sharing in Clients' Experiences: Real-World Financial Challenges

What comes through strongly in our last 25 years is how we’ve been through the same small business challenges and triumphs that we guide and advise our clients through – because we’re a small business too.

• Securing Investment: Sources of external finance played a crucial role in enabling Gary to set up the business. We secured funding at an early stage from angel investment – and generated a substantial return for the investor.
• Scaling the Business: We also experienced, and dealt with, many of the growing pains of success, including having to move premises many times to accommodate an expanding team. 

These were calculated risks, but then this is what growing a business is all about, and as Finance specialists we understand how to maximise growth and minimise those risks – whether they be financial, operational, or reputational.

A Strategic Partnership: EFM Joins Forces with MPA

One of the things that has made EFM such a success over the years is our variety of client engagement options.

Part-time, project, hybrid, as a fully outsourced Finance Department, or through an FC, FD, or business growth advisor, the EFM model is flexible for clients as well as for the 85 Finance professionals who work with and for us.

In May 2023, we took a significant step forward by being acquired by MPA, a leading professional services firm specialising in innovation.

This union has added strings to both of our bows:

1. For us we can refer existing and prospective clients into MPA for specialist consultancy services like R&D tax credits, taxation, Outsourced HR and Patent Box
2. For MPA to refer its prospects and clients into EFM for Finance Director on demand, FC, and fractional CFO engagements.

By combining expertise, we create a powerful ecosystem that benefits businesses across multiple industries.

The Future of Financial Management for SMEs

The future is certainly going to be an interesting one.

Changes and progress are afoot in this industry as in many others, as artificial intelligence (AI), with its ability to spot similarity, and relevance, potentially helps Finance professionals to make quicker sense of data, numbers, and process overlaps, and deliver better decisions more efficiently.

In the wider economic context, changes to tax regimes and employment law are laying more of the burden for repairing the nation’s finances at business’s door, and as those businesses take action to reduce costs, affordable and flexible offerings like ours are likely to be in high demand.

What Won't Change: EFM's Commitment to SMEs

Through all these changes, EFM remains steadfast in its core values:

• Trust & Transparency: We recommend cost-effective solutions tailored to your business needs.

• Creative Problem-Solving: We’ll still think outside the box and save you money on Finance recruitment by showing you how redeploying your staff can, with our help, enable you to meet your objectives.

• Finance Education & Advisory: We remain committed to educating SMEs through content, webinars, and strategic advisory services, helping them navigate financial challenges without the need for full-time hires.

• Succession Planning: With the growing involvement from Director Jon Wheeler, we are ensuring EFM’s longevity and strengthening our resilience for the future.

Partner with EFM for Financial Success

Looking to streamline your SME’s financial management? Discover how EFM can help your business thrive. Contact us today to explore our flexible finance solutions.