I truly believe that small business owners can benefit just as much, from outside financial advice, than large businesses. With small businesses, the room for error on hitting targeted numbers, and having sufficient cash to operate, is often miniscule. When is it helpful, if not critical to being on a Fractional CFO?
Some of the traditional reasons for hiring a Fractional/Part-Time CFO include:
- Business is looking to go public.
- Business need to raise capital or needs sources of debt financing.
- Developing a plan to sell the business.
- Targeting Acquisitions.
In addition to the typical drivers of bringing on a Fractional or Part-time CFO, there are other reasons that are just as important, or even more important, for doing so. Some of these reasons include:
- Assistance in developing and implementing a Business Plan and/or Budget. Unless a business has a defined plan that is implemented effectively and consistently adhered to, they will likely flounder. If you don’t know where you’re going, or have a map to get there, you may not like where you end up.
- Managing Cash Flow. Cash Flow is the difference between success and the failure of small and medium sized business. You need a long-term and short-term view of your cash, and a plan, to address shortages.
- Understanding your numbers. Financial statements are usually just a big pile of numbers and business owners don't know where to focus. They then focus only on the final results. However, understanding certain indicators, ratios, and metrics are extremely important. It’s also important that the information be provided concisely and from an objective party.
- Refining the policies and procedures of the Finance and accounting team to maximize effectiveness and minimize risks.
Of course, a business may not need a Full-Time CFO nor have the resources to support hiring one. Fractional CFO’s are available on an as needed basis and allow small business owner’s to have the expertise of a large company at a reduced cost. For your business, the Fractional CFO may work with you on a weekly, monthly, quarterly, or on an as needed basis.
Do You Need Help?
If you need help from a Fractional CFO or with financial coaching, I’d be happy to talk with you. Please give me a call at (972) 821-1991 or email me at bob@jablonskyandassociates.