CFOs in Stage Two Businesses
Well-established businesses are pivoting during COVID-19 and changing their business models for various reasons – lack of demand, lack of supply, lack of employees – and, of course, all the government mandates to control the spread of the Coronavirus. The use of a fractional CFO provides sharp financial and other critical skills, at an affordable cost, such as:
- Using analytics during accelerating planning cycles and decision-making processes to know which changes yield the best results.
- Designing infrastructure to support process changes that will become better, more efficient, and more profitable ways of doing business.
- Improved forecasting of cash, which is always critical and especially so now. A strong cash management plan with rolling cash forecasts strengthens the company and improves risk management.
CFOs in Start-ups
Data from the Bureau of Labor Statistics shows that approximately 20% of new businesses fail during their first two years, 45% during their first five years, and 65% during their first 10 years. What makes the difference? Attention to detail and strategic discipline. Fractional CFOs in early stage companies provide discipline and analytics for the entire management team to perform at their highest. The experienced CFO will provide:
- Analytical models to help management monetize their new ideas.
- Financial models defining how much capital will be needed to achieve growth goals and the likely contacts where that capital may be found.
- Set-up or improvements to ensure accurate accounting systems that provide information needed for operations and potential investors.
- Assistance to the CEO with Investor and Board relationships and presentations.
Conclusion
Fractional CFOs are helping many businesses navigate the challenges during COVID-19 and transition to a more nimble, efficient business model. Whether you have a well-established business or are an entrepreneur starting a new business, having an experienced fractional CFO partner with you will help your business thrive. The advent of fractional CFO services makes this critical skill set accessible and affordable to businesses of any size. Set your business up to succeed by making a wise investment in knowledge, wisdom, and know-how that CFOs bring to the table. Perhaps your competitors already have? The ROI on a fractional CFO is measurable and sustainable. Every company without a CFO needs a fractional CFO starting right NOW.
C Squared Solutions provides fractional CFOs and COOs for businesses in nearly all industries. We offer four hours free consultation to help you with the analysis and planning of these steps. Give us a call and let us discuss your concerns.
