For many businesses, hiring a full-time CFO may not be feasible or necessary. That said, the stakes are no less for these companies, and effective planning and execution are still critical to surviving and thriving as a business.
A fractional (aka part-time) CFO can help.
While these companies may have a bookkeeper or controller, the focus of these roles is backwards looking, while the CEO and the business itself are forward looking. They need the strategic guidance, support, planning, execution and overall leadership that a seasoned CFO can bring, mainly across 3 main areas:
Firstly, strategic planning and analysis: proper long term strategic plans, annual budgets, rolling forecasts, and projections are vital to P&L and cash flow management, and overall business performance.
Second, strategic initiatives: navigating transactions such as fundraising, IPO’s or M&A transactions requires an experienced hand to plan and execute. CEO’s could use a partner to carry some of the load, have someone that’s done it before advise them on what to do and what not to do, and bring a credible and effective voice to investor/board/stakeholder relations.
Third, the foundational layer: as companies grow, so does their complexity, and they require the right people/structure, process/controls, and systems/reporting. Without these in place, they cannot effectively conduct strategic planning or execute on strategic initiatives.
A fractional CFO can efficiently deliver on these needs by bringing the right expertise for the right amount of time, without taking on a full-time cost.
