Charles Leikauf explains the fractional CFO model: help a $10M business grow 10% and you've created $1M in new value. Capture a fraction of that upside as your fee, say $100k, working just a few hours a week. Make money by making someone else more money.
$10 million
10%
$1,000,000
$100,000 per year
A couple hours a week
If you want to earn more, all you have to do is make more money for someone else. And it sounds simple, but the idea is the fastest way to, well, fastest way to earn significantly more is create more money for someone else and then get a larger percentage of that for you. So what does that mean? Exactly. So if I want to earn more, I'm going to go to someone who I know who has money and say, hey, I can make you more money out of the more money you make. I just want a piece of it for myself. And that is the easiest way to leverage other people's resources or other people's assets. Now, one of the ways we can do that is by providing financial services, being called a fractional cfo, because oftentimes you're helping a business owner who has a business that's doing a larger than yours, potentially 5, 6, 7, 8, 10 million a year. And even if you're growing it by 10%, if you grow a $10 million, your business by 10%, that's a million dollars. Well, if you make someone an extra million dollars, would they pay you $100,000 a year to do so? Absolutely. But if you do, in the model of being a fractional cfo, you're not working full time to do that. You're working a couple hours a week. So how would you like to earn an extra 60 or $100,000 a year by working an extra? That's the math of a fractional cfo.
