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Part Time CFO
Part Time CFO
How Can a Part Time CFO Help Your Business?
Part Time CFO
When starting out a business, many entrepreneurs are faced with the daunting task of being a jack of all trades. Product development, marketing, operations, sales, and finance all fall squarely into the lap of the founders. As the business scales, team members take the weight off the shoulders of the founding team and begin to put form to function. What usually is forgotten is someone who truly understands the numbers and the story. Not just an accountant, but someone who can interpret the meaning behind why specific marketing strategies are working and where to allocate one of the few and limited precious resources a company has, capital.
A part time CFO or Chief Financial Officer is someone with the skillset and background to assist in all layers of financial management.
Everything from forecasting business goals, setting measurable objectives and providing guidance with capital raises and taxes. An outsourced CFO can set a company up for success by applying a deeper level of discipline to the decision-making process. They can also help with raising capital, providing introductions to investors, building financial models, and working with lawyers on any due diligence that comes along the way.
For a company looking to sell, a part time CFO can be invaluable to the valuation process. By helping to guide the founders and investors towards a fair value for the business based on other companies they have seen.
Who Uses Fractional CFOs?
Many early-stage startups and venture capital backed businesses leverage the knowledge of outsourced CFOs to accelerate the growth of their investments. Even private equity firms use fractional CFOs across their portfolio companies.
As a founder in a technology business, you want the best engineer, data scientist, and marketing director. Still, a finance professional who can really understand your business is often an afterthought. The companies that understand the importance of organizing their finances with structure create another lever to scale rapidly.
Finding the Right Fit
In any business function, finding someone that is the right fit comes first. The search to find a person that genuinely understands your business can be challenging, given the nuances in every industry. Altmaven has worked with some great CFOs in the past, helped companies find the perfect partner for their company, and provided our own fractional CFO solutions. To judge the candidate, start with the discovery phase. Have them ask questions about your business and see if they have really done their research.
Whether you are one year into your business or ten, having a part time CFO who can guide you and offer another viewpoint is valuable. They can keep you honest and realistic about your assumptions which every management team could use.
If you have more questions on the subject, please don’t hesitate to reach out.
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