Managing your finances when your business is in the start-up stage can be difficult. As your business starts to grow, your finances become about much more than turning a profit. You have to plan your future carefully. However, you might not have the financial background or expertise to manage this side of your business.
At this stage, you might find it useful to hire a fractional chief financial officer (CFO). What is a fractional CFO? How can they help your business?
What Is a Fractional CFO?
A fractional CFO is an experienced finance professional. These experts have usually worked in CFO roles in their careers on a full-time basis in the past.
Some executives then move to a different working model. They hire themselves out as consultants to different companies. So, a fractional CFO might work on a short-term, retained, or project basis. They might only work for one business at a time or they might have multiple clients.
Fractional CFOs provide a range of services. They can offer general financial management help or work on specific projects such as preparing for audits, sourcing new capital funding, or planning future financial strategies.
Why Hire a Fractional CFO?
Businesses at the start-up stage can rarely afford to hire a lot of senior executive officers. Your company is at a basic financial working stage while it establishes itself. You can manage its direction most of the time.
So, you might not be able to justify the costs of employing a CFO. You probably won't have enough work to keep them busy on a day-to-day basis in any case.
If you hire a fractional CFO, then you can tap into their expertise without the costs of hiring them. You simply pay for the services they provide. This is a more affordable model until your business gets to the size where a full-time CFO becomes more viable.
The advice you get from your CFO will be useful. They can give you executive-level guidance on your general financial management both now and in the future. You might not have any senior employees with whom you can strategize; your fractional CFO can give you an experienced ear and an independent viewpoint.
Plus, you can hire their skills for business-critical projects which you can't manage alone. For example, they can help you raise finance. An experienced CFO will have done this before, so their input will be invaluable. They will help your company grow more quickly.
If you think that your business needs short-term financial advice and leadership at a senior level, then contact fractional CFO services. For more information on fractional CFO services, contact a professional near you.