If you’re a mid-size or growing business then you are faced with multiple challenges throughout the year. One of the biggest challenges that a small to mid-size business owner faces is efficiently running the business finances. Financial challenges can range from having enough funds to grow your team, making the right investment decisions and hiring new employees. Hiring a full-time CFO who dedicates anywhere from 2,000+ hours per year, and costs over $250,000 per year might not be a wise financial decision. Enter the Fractional CFO service – this service can completely transform your business and help you save at minimum $180,000 – $200,000 each year.
A fractional CFO is like an outside consultant with deep expertise and financial knowledge which can help turn your business around in the first year. It’s simple math, if a business owner could not only save money but increase their annual cash flows by 5x then it’s a complete no-brainer.
At our firm, we have helped our mid-size business owners with the following:
- Helped our clients obtain a multi-year Line of Credit worth between $500,000 – $1,000,000
- Make key investment decisions, such as buying new business trucks, business machinery, and other equipment necessary to conduct business
- Provide quarterly cash flow forecasts which helped with strategic financial decision making
- Help navigate major cash flow challenges and cash crunches due to COVID-19 and other economic-related issues like rising interest rates and inflation.
Guess what? These aren’t anything new, business owners have to deal with these challenges every single day. However, it is extremely inefficient for the CEO to be dealing with financial headaches that a fractional CFO or a strategic consultant can help address for a fraction of the cost of hiring a full-time CFO.
I want to share a quick story about one of our super clients Chris who owns a GC/Construction business. General Contractors have a really tough time collecting revenues from their clients, the profitability in the industry tends to be extremely tight. Thanks to our team of highly professional and specialized CFO team, Chris was able to save over $70,000 in one year – but how is that possible? As his fractional CFO team, we were able to take a deep dive into the prices of materials & supplies and labor-related KPIs and discovered that the contracts could be re-negotiated with the suppliers. Although the chances of this happening were slim, Chris (our super client) was able to renegotiate his agreements with vendors and suppliers. In addition, we analyzed his company’s contracts with major clients – we discovered that the current payment terms were negatively impacting the A/R cycle. Our client didn’t understand how to improve their A/R collections before working with our team. These changes helped improve the bottom line and resulted in savings of over $70,000 in the fiscal year.
Most small business owners think that just by hiring a Controller or a CPA they are securing themselves but this couldn’t be further from the truth. A CPA only looks at historical information and the Controller only keeps an eye on what’s currently going on in the business. By hiring a fractional CFO, you will truly bulletproof yourself against what the eyes can and cannot see. As a business owner reading this, you must decide if the pros outweigh the cons. What are the consequences of not getting help from a fractional CFO team? Lower profitability? Lack of clarity on financials? Lack of key future financial information which can help execute key financial decisions? A fractional CFO must be somebody whose not only qualified but also must be 100% invested in your business’s success.
Call Now for Help: 407-990-2002 (407-CFO-Team)