Bob Gauvreau explains what a fractional CFO does: handle financial strategy, cash flow, forecasting, and budgets. Full-time CFOs cost a lot. Fractional CFOs give small and medium businesses part-time access to that expertise at a lower price.
So a fractional cfo. Before I define what that is, let me define what a CFO is. Okay. A CFO is a chief financial officer of an organization. When you think of the key executives inside a business, you think of the chief executive officer, you think of the chief financial officer, and then there's typically a number of others, whether it's sales, marketing it, depending on what the organization looks like, maybe hr. So there's key executives that are part of a successful business. And as a scaling business, the one key executive that is always part of a growing business is going to be the chief financial officer. They are typically also the first person who gets put into that CEO role as well. Why? Because of their financial insights. Understanding of how the business works, understanding of how to hold a business accountable, how to create those goals, how to manage cash resources, and how to ultimately ensure success of the business. Financial expertise cannot be undervalued when it comes to growing and succeeding inside your business. That is what a CFO is. A CFO focuses on financial strategy, key elements of business strategy, cash flow, forecasting, allocation of resources, understanding what the map looks like to achieve those goals, building out budgets, who. Holding departments accountable to achieving those goals and those standards. That is what a CFO does. Now, as you can imagine, that sounds like a pretty complex area and a sophisticated area with great levels of expertise. And you would be right. It really is. The cost to get a good experienced CFO is at least $250,000 in your business, if not more. If you look at some of the Fortune 500 CFOs, they're the highest paid people aside from the CEO inside the business. And they typically once again become the CEO in the future as long as they have the personality to be able to get to be the CEO. Now, what we're doing and what we're defining a fractional CFO is taking all of that expertise, knowledge and making it available to small to medium sized businesses on a much smaller level. Now, it can be on a smaller level or it can be that full level. So the fractional component is saying if you need these financial resources in any of those areas, we can pull them out and plug them into your business. We've got the experienced CFOs who've been running large organizations, they've been running small organizations, they've been involved in the financial success of many businesses. And what we're doing is we're taking that knowledge and expertise and we're bringing it to the small business market at a fraction of the cost of what it would be to have someone like that on your payroll full time. And the great part of a fractional CFO service is that fraction could be 1% to start and it could be 50% in the future. It can grow and scale with you as you and your business are successful. So ultimately, a fractional CFO is all of the experience of, of a full time CFO at a fraction of the cost, at a fraction of the time, at a fraction of the investment to help you get the best out of what that resource can bring to your business so that you can be successful.
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