"What sets Fractional CFOs from FocusCFO® apart from traditional consultants is the manner in which they become an integral, embedded part of the small business’ operations before scaling. Their onboarding process signifies a genuine commitment to and investment in the company’s scaling success, coupled with a deep understanding of the firm’s specific financial landscape." Thank you to Michael Stier, CEPA® for sharing this terrific article!
Fractional CFO Leader| Area President | Helping Entrepreneurs Build Sustainable, Transferrable Business Value | Exit-Succession Planning | Vistage Trusted Advisor
Article's key take aways... Scaling up your business can open new vistas of revenue growth and geographic expansion, but rapidly scaling without cost overruns and overextending existing systems is tricky. That’s where the fractional CFO shines. While fractional CFOs serve a critical role in daily financial management, helping management budgets and working to forecast future growth, a fractional CFO hired to help scale is worth their weight in gold. Many simply don’t realize the critical role they can play in scaling and expansion planning. What sets fractional CFOs from FocusCFO® apart from traditional consultants is the manner in which they become an integral, embedded part of the small business’ operations before scaling. Their onboarding process signifies a genuine commitment to and investment in the company’s scaling success, coupled with a deep understanding of the firm’s specific financial landscape. Expansion is a costly endeavor, and liquidity is key to managing unforeseen circumstances and strategic asset deployment to the most important aspects of scaling. At the same time, your cash needs for daily business operations don’t change. Fractional CFOs excel at optimizing and maintaining a balance between the two. A fractional CFO also plays a pivotal role in defining and assessing the crucial metrics of company before scaling. These figures provide invaluable insights into the financial well-being of your enterprise and are indispensable for founders. Regular financial evaluations serve as a compass to pinpoint growth opportunities similar to how budget oversight does. This in-depth scrutiny can wield significant influence over the destiny of your company. For instance, the early detection of an overestimated marketing budget for a quarter can be rectified by a vigilant outsourced CFO. Simultaneously, overlooking cash flow management or miscalculating your financial runway can deplete your funds more rapidly than anticipated, potentially resulting in a business shutdown. To ensure smooth navigation, a skilled CFO keeps a watchful eye on cash flow, offering projections and recommendations on when to seek additional capital.
