Are you a founder who is struggling to keep up with the financials of your business?
Do you feel like everything else in your business is coming together but juggling expenses, forecasting cash flow and understanding how different actions will impact your cash runway has become an overwhelming challenge?
Or are you looking for funding for your business but don’t know where to start with financial models, pitch decks and talking to investors?
Running a successful company involves far more than just providing an excellent product or service. You need experienced guidance, especially when it comes to finance. That’s why so many founders are turning to fractional CFOs for help.
What is a Fractional CFO?
Chief Financial Officers (CFOs) focus on financial operations and management and shape the financial planning to align with the overall business strategy. Typically, CFOs have been salaried employees, with a chunky salary reflecting their level of expertise and experience.
For early-stage start-ups, a full-time CFO is an expensive resource putting a strain on cash runway. But if you are ready to scale your business the role of a CFO is vital. A fractional CFO may be the answer!
A fractional CFO is a finance expert who can bring the right level of knowledge to your business when you need it but without the full-time salary. The main difference between a CFO and a fractional CFO is the time commitment. Typically, a fractional CFO will work with you for 1 – 4 days per month, flexing their time up and down to meet the needs of the business. With the right person working alongside you, gaining clarity on your finances can be easier than ever!
What does a Fractional CFO do? Pretty much anything that you need help with financially. Typically, Fractional CFOs will get involved with financial modelling, cash flow management, management and board reporting and supporting your funding requirements.
What are the key benefits of a Fractional CFO?
A fractional CFO can support your growing business in many ways with the key benefits being:
1. Get Investor Ready
Raising funding can be tricky. Whether that is equity funding, convertible loan notes or grant funding, having an experienced CFO by your side can help you navigate the journey.
From building your financial models, to understanding your cash burn and runway, a start-up CFO has the expertise to shape your financial strategy and get you to funding quicker and easier. Having an experienced start-up CFO adds credibility to your pitch deck and interactions with potential investors and funders.
An experienced start-up CFO helps founders tell the financial aspects of the business story and allows you to stand back from the nitty gritty of the financial questions that come during the investment process.
2. Get Financial Clarity
The amount of financial data growing businesses generate can be overwhelming. A fractional CFO can help you focus on your key metrics and get clarity on the financial decisions you need to make.
3. Scale up your Finance Function
Scaling your business is difficult and it puts huge demands on your growing team including product development, sales & marketing and customer success.
Having an understanding of how growth impacts cash burn will give you confidence in your cash runway, what levers you have to push out your runway and when you need to start fundraising again.
4. Start Up Specialists On Demand
Fractional CFOs split their time amongst a number of start-ups. This means that they have a wealth of experience working with start-ups and growing businesses just like yours.
Having someone in your team that knows start-up funding, understands specialist tax such as EIS and R&D and keeps you fully compliant with HMRC, will save you significant time and worry.
5. Cost Effective CFO Solution
With a fractional CFO you get best-in-class financial support without the price tag of a full-time employee.
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