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The rise of the Fractional CFO

21 March 2024

Top reasons a business will hire a Fractional CFO 

  • You lack the skill set in their existing c-suite The person who currently oversees that function needs to focus
  • elsewhere (Ex. a CEO who also manages the businesses finances)
  • You have a specific project in mind that requires specialist knowledge They have a team of junior and mid-level marketers/financers who

could use the guidance of a senior marketeer /financer

  • You want to build a finance or marketing team from scratch
  • You don’t want to commit to a long-term hire
  • You are approaching a new funding round and need support
  • You want someone with a proven track record in your sector

Laying the foundation for short-term and long-term financial success 

A Fractional CFO serves as a financial visionary.

They come with a strategic mindset and can forecast the best use of capital to grow the business efficiently, quickly, and sustainably.

Scaling company founders rely on Fractional CFOs to come in, assess the current financials and create short-term and long-term financial plans.These plans will help inform business decisions going forward such as:

  • budget allocation
  • pricing models
  • market opportunities
  • customer segments
  • product development

But a CFO does more than look toward the future, they also fix pre-existing financial issues in your business.

The Fractional CFOs role in securing capital

Everything a fractional CFO does helps prepare your business for raising capital. ‍

Healthy financials are fundamental when demonstrating value to investment firms.

But you can’t go to potential investors with numbers alone. You need to put them into context.

Fractional CFOs like Daniel Walter will take those numbers and help you create a compelling narrative that communicates to investors the business’s potential for accelerated growth.

Should you hire a fractional CFO/

Yes. A Fractional CFO is a great option for ambitious ecommerce startups who want to build the foundations for hyper-growth.

Especially if they’re in need of the skill set but can’t afford a full-time hire or don’t have the time to go through a lengthy hiring process.

“When it comes to full time employee vs freelance, the core question you need to ask yourself is: will this person still be the right fit given our probable priorities in 6-9 months time? 

A full time employee is going to take you 3 months to find, and 3 months for them to ramp. So someone you start looking for as a FTE today needs to be the person you’ll still need 2-3 quarters away. Otherwise, test, experiment, stay agile and use world-class freelance talent to fill your more immediate needs.”

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