As your business grows, so do its needs. A bigger team, more space — and likely a CFO. But what will adding a CFO to your team mean for your business? Do you need one at all?

In short, yes. A CFO isn’t just a number-cruncher. They’re an experienced financial executive and advisor who can help you make sense of your numbers and get your business past the natural plateaus you encounter as you grow. 

As you look for a CFO, consider working with a Fractional CFO firm. Fractional CFOs have deep experience and years of history working as CFOs, and many of us have been entrepreneurs as well. We’ve been in your shoes and know where you’re coming from, making it easier to build a productive, trusted relationship.

Why do CEOs look for a Fractional CFO?

Most CEOs we work with reach out because something’s off in their business, and they’re not having much success addressing it on their own. Most often they’re: 

• In financial distress (a deal went bad or they lost a major customer)
• Having cash flow issues (stemming from rapid growth or financial decline)
• Experiencing transitions within leadership or generational issues in family businesses
• Planning an exit and want to sell immediately or position themselves to sell down the line 

Other times, we work with CEOs who are coming to us at the encouragement of a third party, like their banker or investor. Bankers love working with CFOs because we speak their language and we understand what they’re looking for. If we’re hearing from a CEO at the recommendation of a third party, the business is usually having trouble with:

• Being out of their covenants
• Borrowing beyond their limits
• Providing poor financial statements or being disorganized with their financials

Those are challenging issues, and some CEOs hesitate to share the full story of their troubles with their capital provider, leading to surprises that delay processes and harm the relationship. The right Fractional CFO will help you give the bank a clear picture of the situation and the plan to get you back on track. 

Transparency is a must-have

The ideal CEO-CFO relationship is completely transparent and built on trust. As your Fractional CFO, I can’t help you if I don’t fully understand the situation. You might feel like there’s no one you can share the ups and downs of your business with, but a Fractional CFO has seen it all, and there’s nothing you can reveal that would surprise us. We’re here to help you deal with it and take the burden of handling it all alone off your shoulders. 

I build trust quickly with a CEO by finding a quick win where I can in the first few months. A Fractional CFO’s deep, diverse experience makes it easy to see some of the sneakier issues quickly. For some companies, it’s offering sales discounts that get deals done but also knock a significant percentage off the gross profits. For others, it’s pricing that’s too low or too high and killing the margins. 

Getting a quick win creates enthusiasm to tackle bigger challenges and builds the trust that’s necessary in the CEO-CFO relationship. 

The benefit of outside expertise

Having someone come into your business with a fresh set of eyes is invaluable — and someone with financial leadership expertise is even better. A Fractional CFO brings not only the financial insights you need for a healthy business, but the planning discipline and strategy you need to thrive. Strategy is a crucial piece of the puzzle, and most of my clients and I do strategic planning once a year. We’ll review and adjust the plan based on what’s occurred and the goals for the next year, making sure everyone is on the same page. 

While a Fractional CFO brings an important outside perspective, they also become part of your team. Your Fractional CFO is your trusted partner in building a successful business, and I’ve found that the best CEO-CFO relationships are with CEOs who are:

• Coachable
• Even-keeled, empathetic leaders
• Enthusiastic about change and innovation

But a Fractional CFO doesn’t come in and just tell you what to do — we observe what’s working and what isn’t and start discussions about solutions. You know your business, and we’re there to guide you toward the best outcomes.

Trust a Fractional CFO to help you build your company

Every CEO needs a CFO eventually. When you’re tired of juggling the budget, the financials and the strategy on your own, it’s time to let a Fractional CFO be the financial leader you need so you can focus your attention on what you’re best at. But that can only happen if you have a strong, open relationship with them. 

If you’re a CEO looking for executive-level financial guidance who can be a trusted financial expert for you and your Kansas City company, a Fractional CFO from Crown CFO has the background and experience to help you navigate your unique challenges. 

Contact Kerry George at kerry@crowncfo.com to bring an expert Fractional CFO to your business.