Fractional CFO
Minimize your risk while optimizing your growth by leveraging Fractional Executives.
Unlocking Financial Growth with a Fractional CFO
The business world is constantly evolving and finding the right partners to grow with you is essential to success. That’s why more and more companies are turning to fractional Chief Financial Officers (CFO) as a solution for their financial strategy and management needs.
What is a Fractional CFO?
A fractional CFO is a financial expert who works with companies on an as-needed basis. Their time can be from a few hours a week to nearly full-time. Fractional CFOs bring a broad range of accounting, finance, and strategic planning skills and provide the same financial expertise as a full-time CFO at a fraction of the cost. Distinct skillsets include:
- Raising Capital
- Mergers and Acquisitions
- Public Offering Support
- Audit Support
- Financial Strategy
- Systems Implementation
- Budgeting
- Financial Analysis
Fractional CFOs are ideal for early to mid-stage companies that are growing or lack the budget to hire a full-time CFO. They also provide the flexibility to scale up or down depending on the company’s needs.
Is a Fractional CFO right for you?
What are the benefits of a Fractional CFO?
- Cost Savings – Provide the same level of expertise as a full-time CFO, but at a fraction of the cost.
- Strategic Financial Mind – Deliver strategic insight into the direction of the company.
- Financial Planning/Budgeting – Develop financial plans and budgets that align with the company’s overall goals.
- Cash Flow Management – Provide guidance on maximizing the return on investments and managing cash flow.
- Risk Mitigation – Identify and manage financial risks.
- Regulation Management – Help companies navigate complex financial regulations.
- Flexible – Flexibility with hours and the ability to scale up and down on a moment’s notice.
Many companies that employ fractional CFOs still maintain their finance and accounting teams. Their Fractional CFO guides and directs those teams as needed to help avoid costly mistakes.
Case Study:
A Fractional CFP Unlocks Growth
Let’s examine what deploying a fractional CFO looks like for a company that needs help unlocking growth.
Challenge
Solution
Result
Navigating Financial Waters: A Tech Startup's Challenge
An early-stage tech startup with significant promise was looking to expand. They could get by with the finance and account basics but needed help with financial strategy, planning, and budgeting. They needed a seasoned finance expert’s skills but more money to hire a full-time CFO.
From Chaos to Clarity: A Fractional CFO's Impact
The company hired a fractional CFO to help them with their financial management needs. The fractional CFO thoroughly examined their books and helped them develop a financial plan and budget aligned with their goals. They also provided guidance on maximizing the return on investments and managing cash flow.
The fractional CFO saw promise in the company, so they prepared the tech company for a fundraising round. During this preparation, they identified some risks with financial regulations. They guided how to comply with financial regulations and helped the company avoid costly mistakes.
From Start-Up to Scale-Up: A Fractional CFO's Contribution
The company built a financial strategy that helped them secure essential capital to increase its budget and unlock untapped growth. The capital allowed them to expand their team and offering and beat their financial goals set by investors. The fractional CFO continued to oversee the finance and accounting teams to ensure the company was on the right path.
Key Takeaways
- Fractional CFOs can be an excellent solution for companies looking to save money while still getting the financial expertise they need. They can provide the same level of knowledge as a full-time CFO but at a fraction of the cost. They can also provide strategic insight into the company’s direction and help manage financial risks.
- The case study demonstrates how a fractional CFO can help companies unlock their growth potential. A fractional CFO can help companies meet their financial goals by providing the expertise and guidance they need.
- To maximize the impact of a fractional CFO, companies should be clear about their goals, provide the fractional CFO with as much information as possible, be open to their suggestions, and set clear expectations.
- Finally, a successful fractional CFO should have experience in financial management, the ability to think strategically, good communication skills, and flexibility.
Want to Learn More?
A fractional executive CFO may be the solution if your company is looking for a way to save money while still getting the financial expertise you need. Reach out to NeoGig to learn more about how a fractional CFO can help your company unlock growth.