When starting a business venture, an entrepreneur will inevitably need to call on others to help with the execution of their plan. Regardless of your industry, it is a given that money matters will be involved in some way. As you work to build up your business’ leadership team, you may be having to make some hard decisions about what positions to seek out and who should fill those roles—and many people quickly get hung up on decisions surrounding the CFO position. However, with the rise of fractional CFOs, it is much easier for entrepreneurs to get the expertise (and the cost savings!) they need.
What is a Fractional CFO?
Fractional CFOs are fully qualified financial officers who work either on a part-time or a retention basis. Fractional CFOs will often be remote due to the part-time nature of the work, but may sometimes come for in-person office visits to conduct meetings or do other tasks.
Why Would a New Business Want a Fractional CFO?
A good financial foundation is a must for any business interested in long-term success, but new businesses often do not have the revenue that allows them to justify adding another member of the C-suite to their payroll. Oftentimes, these businesses may feel pressured to find a CFO with less experience (and thus with a lower salary requirement), but this can often backfire. In these situations, a fractional CFO can be a good solution—businesses can get the expertise of an experienced CFO when they need them, but for a fraction of the cost.
How Can a Fractional CFO Help a Budding Business?
Aid in Planning, Both Short- and Long-Term
It is so important that new businesses plan their financial decisions carefully, both to build up their business today and ensure it is successful tomorrow. A fractional CFO can help you get a strong financial foundation in place and help with realistic growth plans for the future.
Carefully Manage Growth
Periods of extreme growth can be exciting for businesses, but they can also be detrimental in the long term. A fractional CFO can help new businesses manage their growth so that they are able to scale up in a way that is sustainable for their future plans.
Provide Strategic Planning
Your business will be in need of a lot of financial advice, especially in the early years. A CFO can provide strategic guidance when it comes to raising capital, making investments, and more—this way you can be certain that your business decisions are well thought out and expertly reviewed.
If you’re curious to learn more about making good financial planning decisions for your business, we’re here to help! Contact us today to learn more.