Dangers of Not Building a Banking *Relationship*

Our guest today shares the dangers of not having an actual ongoing relationship with your banker, and how to find the right banker, build your relationships with them, and the options this gives you when you run into the inevitable emergencies and problems in running your business.

 

Trey Weatherill is a VP & Senior Relationship Manager at American Business Bank (www.AmericanBB.bank), a Southern California bank for private, closely held, medium sized businesses with revenues typically between $10-$200M.

Trey explains how to use your network, test out different potential bankers, and find the right banking relationship. He explains what to do if your business is on the smaller side and you’re worried you may not be able to get a banker’s attention, what to do when your banker leaves your bank, and the tradeoffs between working with one of the big banks versus a local or regional bank.

Using a Coach for Strategic Growth

Our guest today, a probate litigator with a national firm, shares what he’s gained from using a coach (Strategic Coach) to grow his business and improve his life.

Scott Rahn is the managing partner of a RMO LLP (www.RMOLawyers.com), a trust, estate, and probate litigation firm in California, Florida, Texas, Missouri, and Kansas.

He shares about his experiences with his grandmother, how he got into probate litigation, how he uses values and vision to nationally scale a practice that is incredibly situation and state-specific, what he’s learned from Strategic Coach (founded by Dan Sullivan), and what he’s done differently because of it.

Listen to the show on Apple podcasts (https://podcasts.apple.com/us/podcast…, wherever you normally get your podcasts, or listen on the web at www.FractionalLeadership.io/Podcast.

 

How to Do More With What You Already Have

 

You need to accomplish a lot in your business but you have limited time, limited money, and a limited number of team members. How do you do more with less? Our guest in this episode, Adi Klevit, answers this question.

Adi is the founder and CEO of Business Success Consulting Group (www.BizSuccessCG.com), a team of business process consultants who help organizations create and implement processes that are “followed by all” through systems and automations.

Adi explains when you need to be realistic about where you are and not over-hire, overspen, or add too many technology solutions without being tethered to a cohesive strategy and your true financial and place in your own business evolution. She explains how to use relatively low cost automations and processes to do much more with very few resources.

Listen to the show on Apple podcasts (https://podcasts.apple.com/us/podcast…, wherever you normally get your podcasts, or listen on the web at www.FractionalLeadership.io/Podcast.

ADHD is a Superpower, Not a Curse

 

 

If you have adult ADHD and other people don’t understand you or feel unsuccessful or incompetent in some environments but you’re faster than everyone around you in another part of life, check out this conversation with Peter Shankman (wwwShankman.com).

 

Peter is the host of the Faster than Normal podcast, the Internet’s #1 podcast on ADHD, 5x best selling author, including one book I read recently, Faster Than Normal: Turbocharge Your Focus, Productivity, and Success with the Secrets of the ADHD Brain (https://www.amazon.com/Faster-Than-No…, is the founder of HARO – Help A Reporter Out, and is an international keynote speaker primarily on the topic of Customer Experience.

 

In this interview, Peter Shankman shares what things were like before he was diagnosed and realized he had ADHD in his 30’s, how you can reengineer your environment to maximize your strengths and minimize ADHD’s downsides, he explains the “neuro-atypical economy” and what it means for your business, and shares two top rituals and habits people can use to maximize the benefits and mitigate the disadvantages of having a “faster than normal” brain.

 

Listen to the show on Apple podcasts (https://podcasts.apple.com/us/podcast…, wherever you normally get your podcasts, or listen on the web at www.FractionalLeadership.io/Podcast.

 

Stop Killing Your Low-Hanging Fruit

How do you stop killing your low-hanging fruit by cross selling to your current client base? Find out in this podcast interview with Darrell Amy, host of the Revenue Growth Podcast and Founder/CEO of Convergo (www.Convergo.co), a sales consulting firm that helps B2B companies use a business operating system to create and execute revenue growth goals.
Darrell describes the low-hanging fruit most people leave rotting on the vine, the common behavior patterns and ways of thinking that drive this, and how it hurts people. He then teaches what “100% Sold” means, the three levels on which people should track “100% sold,” and what people should do with account management to get to 100% sold.
Listen to the full interview on Apple podcasts (https://podcasts.apple.com/us/podcast/win-win-an-entrepreneurial-community/id1465488607), wherever you normally get your podcasts, or listen on the web at www.FractionalLeadership.io/Podcast.

Small Businesses and Fractionals

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Fractional team members are all the rage these days with small businesses, and there is a good reason why. There is a wide range of what a Fractional CXO can help small businesses do, as described by other articles on this site regarding regard to COOs or CFOs. But, specifically for micro or small businesses, would a Fractional help you?

Let’s start with the basic thought process. Hiring a Fractional at any level helps manage the budget. It would be impossible for small businesses with less than 25 employees,  to have a $300K salary on the books, even for a spectacular Chief Operating Officer who runs the whole business. And, the owner probably doesn’t need that much help and experience for a business that size.

But, without Fractionals, the owners of small businesses are stuck doing all the work themselves. They are fulfilling the roles of CFOs, COOs, CIOs, CPOs, CROs, CSOs, and CTOs. (I could continue with the alphabet, but you get the gist.) Not one of those roles needs to be filled by a full-time person in a company that size.

Full Time or Fractional?

Owners might think they should go look for an up-and-comer to help them, but then they are also guiding and directing the person who they need for guidance and direction. With a Fractional, small businesses get years of experience because the role is part-time without the high price tag.

Fractionals can go beyond the c-level suite as well. We used to call these part-time employees, subcontractors, or freelancers. Graphic designers, social media experts, project managers… do small businesses really need people in those roles as full-time employees?

Collecting a bunch of Fractionals to help you in your business can impact growth tremendously. All that wisdom at your fingertips, without the huge overhead!

Fractional COOs for Small Businesses

Let’s take, for example, what a Fractional COO might do for very small businesses of various sizes.

At 50 people, an owner likely needs a 1- to 2-day-a-week Fractional who has direct reports. The Fractional COO would help by advising and creating reporting in many areas, would help in developing the culture, identifying risks and opportunities, project management of high-level projects, and strategic planning.

But, at 10 people, owners of small businesses likely just need help getting out of the day-to-day. You can hire by the hour, usually, for these services or at low retainer rates. Before the owners can get to those bigger picture areas noted above, they need someone to advise on things like:

  • what the best project management software tool is
  • how to implement it
  • where there are gaps in the processes (if you have them!)
  • how to hold your team accountable
  • and, how to make the business run without the owner in every detail

Owners might also need to create job descriptions and some of those non-C-level Fractionals to help execute the work. Essentially, small business owners need help learning how to scale and extricate themselves from the details.

Midrange small businesses (think 10-49 employees) need help with clarifying what those great employees are doing, correcting communication to prevent silos in departments (likely created by those great employees unintentionally), and making sure owners know what those amazing leaders are doing so their gap can be filled should they leave. At this stage, culture and leadership issues might also be becoming challenges.

Choosing the Right Fractional

Small businesses might only be able to afford one Fractional at a time – and that’s ok. But, how does an owner decide?

Fractional CFOs or COOs are usually the first hires. But Fractional CMOs are up there. It might be valuable to have both. Many Fractional CFOs working for small businesses will bring a range of services with them, from bookkeeping to taxes and being a trusted advisor.

Fractional COOs can range from consultants who give strategic advice (but the owner implements the work) to teams similar to the Fractional CFO team – with a COO, process development expert, and project manager for example.

Fractional CMOs will usually need to pull in a team to help execute against their recommendations because everything is so specialized these days. Everything needs an expert from website design and development to social media strategies to physical direct mail.

Small businesses likely need a full array of services as it helps remove burdens from the owners’ task lists. So, owners need to be certain what range of services they will be getting with the Fractional they hire.

About the Author

Susan Fennema is the Chaos Eradicating Officer (CEO) of Beyond the Chaos, a consultancy helping small business owners extricate themselves from their day-to-day business operations so they can grow their businesses and get their lives back. She and her team have served over 100 small businesses. With 30+ years of operations/project management experience in professional service industries, Susan is on a mission to improve American society exponentially. When not making multi-course dinners, she enjoys Texas A&M football games and Blackhawks hockey. She lives and works from her home in McKinney, Texas, with her husband and their dog, Shelby.

The Secret to Making Social Media Work for Your Business

Today’s consumers are more connected than ever before. As a result, social media has become one of the essential tools for businesses to reach their target audience and drive brand awareness and loyalty. Social Media is playing an enormous role in the growth of businesses these days. In fact, according to studies, almost 80% of internet users now use social media sites daily. Therefore, if you want your business to thrive in today’s digital world, you need to understand how social media can be used as a marketing tool to increase brand awareness and drive sales directly from your website. The trick is knowing which social networking sites are best suited for your business, what types of content will be most effective on each platform and how much time and resources you’re willing to invest in creating engaging content regularly.

Decide on the type of social media you want to use.

The first step in any successful social media strategy is deciding which platforms best suit your business. Understanding that each social media platform has its own unique demographics, you may want to consider focusing your marketing efforts on a couple of the most popular sites, such as Facebook and Instagram, or diversify your marketing efforts across several different platforms. Some social networks, such as LinkedIn, are primarily geared toward professionals, while others, such as Instagram, focus on a much broader demographic, including teens and millennials.

Find your target audience.

Once you’ve decided on the social networks you want to focus on, you’ll need to research the demographics of each site to determine the best way to reach your target audience. While it’s helpful to know the number of users on each network, it’s also essential to research the types of content they’re sharing, how often they visit each site, and their engagement level when they’re there. This will give you a good idea of which networks to focus on and the best times to post your content for the biggest impact. By taking the time to understand who’s using each network and what they’re looking for when visiting these sites, you’ll be able to create more engaging content that resonates with your desired audience and drives more traffic to your website and sales.

Create exceptional content.

Once you’ve decided on the social networks you want to focus on, it’s time to create some high-quality content to post on these sites. There are a variety of types of social media content that you can include on your site, from blog posts and eBooks to videos and infographics. However, you’ll want to make sure that you’re not creating too much content for your audience to consume. Depending on the size of your audience, you may be able to post new content daily or weekly, but you don’t want to create so much content that you exhaust your audience or bore them with too much information. Similarly, you don’t want to just create content for the sake of having new content. You must ensure that each piece of content you post is engaging, interesting, and valuable to your audience.

Don’t just stop at one network.

It’s important to remember that social media is all about sharing content across multiple networks and platforms. While you may have a primary focus, such as Facebook or Instagram, you should also be cross-posting your content to several other sites as well. In fact, according to research, you should be posting your content to an average of 10 social networks. The trick is not just to be posting the same content over and over again. While it’s OK to repost certain articles on different networks, you should be altering the content for each site so that it better resonates with the users on that platform. Additionally, you may want to consider setting up a social media management platform, such as Hootsuite, so you can easily schedule your posts to go live at the optimal times for each network. This will help ensure that your posts are getting seen by as many people as possible on each site.

Summing up

Social media is a powerful tool for reaching new customers and growing your business. However, it only works if you’re using it for your business and creating engaging content that resonates with customers. Start by deciding which networks to suit your business and target audience. Then, create high-quality content that is engaging and worth sharing. Don’t just stop at one network; post your content on multiple sites to reach potential customers.

RJ Grimshaw is a dad, son, and life learner, and I love the game of business! His passion is business coaching, in which I use the principles to grow and scale businesses by thinking less like a cog in the corporate machine and more like an active “Intrapreneur.” He helps companies revitalize their atmosphere and approach to business management to achieve maximum growth.

You can contact RJ at rj@rjgrimshaw.com or https://rjgrimshaw.com/business-coach.

Why Small Giants: Choosing Great Over Big is the Better Business Strategy

There are two types of companies in the business world: small giants and big fish. The small giants are the businesses that have chosen to stay small and focus on quality instead of quantity. They believe this is the better business strategy and succeed because of it. The concept of small giants comes from Bo Burlingham’s book of the same name.

In it, he discusses why small businesses are often more successful than their larger counterparts. From my interview with Rob Dube, Co-Founder and Co-CEO of imageOne, a document management solution company, and the author of ‘Do nothing: The Most Rewarding Leadership Challenge You’ll Ever Take.’ Rob is also the co-founder, with Gino Wickman, of an organization called The 10 Disciplines, which teaches business owners a proven process to help people maximize their energy and help them live their optimal life. I have compiled the following on small giants, choosing great over big. This blog post will discuss the small giant philosophy and how it can benefit your business.

What is a Small Giant?

The small giants are the businesses that have chosen to stay small and focus on quality instead of quantity. They believe this is the better business strategy and succeed because of it. The concept of small giants comes from Bo Burlingham’s book of the same name. In it, he discusses why small businesses are often more successful than their larger counterparts.

The small giant philosophy is all about choosing quality over quantity. Businesses should focus on providing a great customer experience rather than trying to serve as many people as possible. While this may seem counterintuitive to run a business, it makes a lot of sense. When businesses prioritize quality, they tend to be more profitable. They also have lower employee turnover and can better weather economic downturns.

So if you’re looking for a business focused on quality over quantity, you should definitely consider becoming a small giant. You’ll be glad you did!

What is the Small Giants Community?

Robe Dube being part of the community, explains it as a professional business network for purpose-driven executives who want to learn new methods and systems to implement in their own businesses. There are no membership fees involved with the Small Giants Community — instead, there are three primary ways to participate: study from Small Giant PDFs and other resources, attend the annual Small Giants conference, and join small groups of peers (called “Giants Circles”) that meet regularly to support and challenge each other.

The Small Giants Community is open to any business leader who is looking for an alternative way to run their company. Whether you’re a small business owner, CEO, or president, you’ll find valuable resources and support within the Small Giants Community.

Suppose you’re interested in learning more about the small giant philosophy or looking for a supportive community of like-minded business leaders. In that case, we encourage you to check out the Small Giants Community today!

Qualities of Small Giant Companies

The small giant companies that have been studied all share some common qualities. They are: 

The Leader Factor

It is widely accepted that solid leadership is a critical ingredient for any organization’s success. While this is undoubtedly true, it is also important to note that not all leaders are created equal. In particular, the leaders of so-called “Small Giant” companies exhibit unique qualities that enable them to achieve extraordinary results.

First and foremost, leaders of Small Giant companies are highly self-aware. They clearly understand what they want to achieve with their business and are also aware of the deeper purpose that drives their actions. This self-awareness allows them to lead their organizations more effectively without sacrificing the things that matter most.

In addition, Small Giant leaders are passionate and committed to their teams. They know that creating a great company requires the best efforts of everyone involved, and they work tirelessly to inspire and motivate their employees. This passion and commitment often lead to a deep sense of loyalty from team members, contributing to the organization’s long-term success.

Finally, Small Giant leaders are always learning. They realize that the world is constantly changing, and they adapt accordingly. This ability to learn and change means they are always ahead of the curve, giving them a significant competitive advantage.

The Community Factor

Being a good corporate citizen is not just a PR strategy for Small Giant companies – it is part of their core values. These organizations are part of the local landscape and are mindful of their actions’ impact on the community. They work to create a virtuous cycle of support, where the community relies on them as much as they rely on the support of the community.

In this way, they can create long-term relationships of trust and mutual benefit. As a result, Small Giant companies are not only good neighbors but also good stewards of the local economy.

The Customer/Supplier Factor

One of Small Giant companies key qualities is how they nurture their relationships with customers and suppliers. Unlike many large corporations, Small Giants consciously look for values-driven partnerships and treat those relationships with the utmost integrity. This commitment to customer and supplier relations has several important benefits.

First, it creates a support network of like-minded individuals and businesses that can be relied upon in good times and bad. Second, it helps to build trust and loyalty, which are essential for long-term success. Finally, by nurturing these relationships, Small Giants create a competitive advantage for themselves—one that is based on trust, respect, and mutual understanding.

Employee Factor

Employee retention rates are incredibly important for any company. Not only does it save money in the long run, but it also creates a more stable and productive workforce. Small Giant Companies are known for their high employee retention rates. This is because they have an’ employee first’ approach to business.

They recognize that to be a truly great organization, their employees need to be happy and advocates of the business. As such, they invest heavily in their employees’ happiness and wellbeing. This includes offering competitive salaries, comprehensive benefits packages, and a supportive work environment. In return, their employees are highly loyal and passionate about their work. As a result, Small Giant Companies can create a stable and productive workforce, which is essential for long-term success.

The Margin Factor

Small Giant companies realize there is more to success than simply increasing volume and top line revenue. These innovative businesses have sustainable models that protect their gross margins.

By keeping a close eye on expenses and focusing on quality over quantity, Small Giants can maintain a healthy bottom line. This allows them to reinvest in their products and employees, creating a virtuous growth cycle. In addition, Small Giants tend to be nimble and adaptable, another key quality contributing to their success. By being open to change and willing to experiment, these companies can stay ahead of the curve and remain competitive in today’s ever-changing marketplace.

The Passion Factor

The owners and leaders of Small Giant companies are passionate about what they do. They have a deep love for what they do, which gets them out of bed in the morning and enables them to maintain their passion through highs and lows. Their passion is evident in their commitment to their work and their continued efforts to improve their products or services.

It’s this passion that sets Small Giant companies apart from other businesses. When customers can see that the company cares deeply about its product or service, they’re more likely to trust the company and become loyal customers. This passion is also contagious and often rubs off on employees who are more motivated to do their best work. Ultimately, the passion of the owners and leaders of Small Giant companies is what sets them apart from the competition and helps them thrive.

Growth isn’t the Only Measure of Success

It is often said that growth is the only way to measure success. However, this is not always the case. While growth is certainly an important metric, it is not the only thing that matters. Sometimes, a company may be doing very well in terms of revenue and profit, but its workforce may be unhappy, or its products may be of poor quality. In these cases, growth is not indicative of success. Instead, success should be measured by a combination of factors, including growth, profitability, customer satisfaction, and employee satisfaction. By looking at all of these metrics, you can get a more holistic picture of how a company is performing.

 

What is a Fractional COO? And Do You Need One for Your Business?

If you’re like most business owners, you’re probably wearing a lot of hats. You’re responsible for marketing, sales, operations, and maybe even finance. It can be tough to manage it all yourself, especially when trying to grow your business. That’s where a fractional COO can help. I interviewed Rachel Beider, CEO of Press Modern Massage, a consultant, and an author of Press Here: Massage for Beginners, to learn more about how a fractional COO can help business owners and whether or not you need one for your business.

What is a Fractional COO?

A Fractional COO is a Chief Operating Officer that works for your company on a part-time or interim basis. They’re there to offer you guidance, expertise, and executive-level leadership to assist you in avoiding roadblocks in your business model and ensure that you’re on the right strategic and operational path for maximum development.

Fractional COOs provide various services at a fraction of the cost of a full-time COO, making them an appealing success tool for small and medium-sized businesses and organizations just getting started without the cash for a full-time COO.

The Fractional COO model is becoming increasingly popular as businesses look for ways to do more with less.

What does a Fractional COO do?

The fractional COO’s duties vary based on the company’s demands, the CEO’s skillset, and the fractional COO’s skill set. There are a lot of tasks that a fractional COO can handle in numerous areas. The sole responsibility of a fractional COO is to run the firm better than it did when they joined it and to handle all operational issues to relieve you of duties and allow you to concentrate on your long-term business goals.

In general, though, these are some of the focus areas most COOs come to handle;

  • Strategic Planning: Assists the CEO in long-term strategic planning by focusing on the company’s mission, vision, values, and goals. Long-term and short-term planning are two different things. They also have the knowledge and connections to see their initiatives through.
  • Operational development and management: This might be anything from enhancing and reshaping the company’s operational core to identifying opportunities and risks. Creating long-term viable systems and processes, such as standard operating procedures, organizational restructuring of back end and front end systems, policy and procedure creation, and introducing new technology when necessary are all a part of operational development.
  • Organizational development and management: Assists in developing and leading a sustainable culture and environment that enables the company’s growth. Consider hiring, communication, team management, and leadership areas to address.
  • Project management and planning: Overseeing company projects that have been determined through strategic planning. They ensure that the project is proceeding as planned, that stakeholders are all on the same page, and that the project is progressing as it should. The fractional COO may completely manage or simply oversee projects with project managers depending on the business’s size and the project.
  • KPIs and metric reporting: Reports on and improves key indicators to ensure and evaluate efficiency within the company. Consider sales forecasting, website, and social media traffic, data, client retention, and other vital metrics.

When should a Business Hire a Fractional COO?

Most business owners or CEOs wear many hats. They are responsible for the growth and profitability of the company, managing people and teams, developing new products or services, and ensuring smooth operations. But there comes a time when a business reaches a certain level of success that it becomes difficult for one person to manage everything effectively. This is when a fractional COO can be extremely valuable.

This is precisely why fractional COOs exist – to provide an extra set of experienced hands-on-deck without the full-time commitment or cost. Fractional COOs can be brought in for as little as a few hours a week or month, and they can help with anything from developing growth strategies to streamlining processes to hiring and firing employees.

This is true with Rachel. Her business had grown from having one room to nine rooms and more massage therapists, followed by exponential growth to open another branch in a different location with eight rooms. She was excited to take on new challenges; however, she quickly realized that managing two spaces was more than she could handle. She was handling everything herself, from hiring staff to training staff to managing the books. She quickly realized she needed help and brought on a fractional COO to take on some of the operational tasks, freeing her up to focus on what she does best – expanding the business.

The following are some signs that a small business might require a fractional COO. If you can relate to any of these, it might be time to start looking for a Fractional COO for your business:

You’re spending more time managing than improving

When you’re spending all of your time ensuring everything is running efficiently, you’ll have less time to develop new methods for pushing your company forward. If you’re so busy keeping your company afloat that you don’t have time to think about where it’s going or how you can help it get there, consider hiring a COO. A Fractional COO can take charge of the day-to-day operations of your business, giving you more time to focus on the big picture.

You’re expanding rapidly

If your business is growing quickly, it can be challenging to keep up with the demand. A Fractional COO can help you manage this growth by developing systems and processes that can scale with your business. They can also help you manage your finances and human resources, so you can focus on other aspects of running your business.

You don’t have time to plan for the future

 

When you’re too busy putting out fires, it’s hard to find time to think about where you want your business to be in five years. A Fractional COO can help you develop a long-term plan for your business, so you can focus on the present without sacrificing your future.

Your CEO is overwhelmed

If your CEO is trying to do too many things, it can be difficult for them to focus on the most critical aspects of running your business. A Fractional COO can help take some of the pressure off by handling day-to-day operations, so your CEO can focus on more strategic tasks.

You want to strengthen your company’s leadership

If you want to build a strong leadership team, a Fractional COO can help you identify the most qualified candidates and develop a succession plan. They can also help you implement training and development programs to prepare your leaders for the future. For instance, how Rachel was assisted by her COO in implementing Homebase, a small business tool for managing employee scheduling, time tracking, and communication.

You need someone to execute ideas

If you have a lot of great ideas but don’t have the time or resources to execute them, a Fractional COO can help. They can develop and implement systems and processes to help you get the most out of your ideas.

The Good News

So what’s the good news? Fractional COOs can be an incredible asset to a business. They can provide much-needed structure and support, freeing the CEO to focus on strategic initiatives and long-term growth.

In addition, a Fractional COO can bring a fresh perspective to the table, providing outside insights and ideas that can help take your business to the next level.

If you’re feeling overwhelmed by the day-to-day operations of your business, or if you’re simply looking for ways to take your company to the next level, a Fractional COO may be just what you need.

 

Is Your Business Ready For A Fractional CFO? How To Decide If It’s The Right Move For You

If you’re a business owner, then you know that there are a lot of moving parts that go into making your company successful. From sales and marketing to operations and finance, keeping track of everything can be challenging, especially if you’re unfamiliar with all aspects of running a business.

That’s where a fractional CFO comes in. Fractional CFOs are experts in financial management, and they can help your business make the most of its money. From my interview with Nelson Tepfer, the managing partner at ProCFO Partners, which provides fractional CFOs across New York state and Chicago, I have compiled the following on what fractional CFOs are and how they can help your business grow. I’ll also give you tips on deciding if hiring a fractional CFO is the right move for you.

What is a Fractional CFO?

A Fractional CFO is a Chief Financial Officer who works part-time, usually for small to mid-sized businesses. This type of CFO can be an excellent option for companies that can’t afford a full-time CFO or only need someone to handle financial matters part-time.

The CFO is the strategic and managerial head of finance, and they can be critical allies for founders without a financial background. The CFO can set and review financial key performance indicators (KPIs), implement best practices, create budgets and forecasts, and assist the board and potential investors in understanding the company’s financial status.

Many startups are unable to afford a full-time CFO. An outsourced CFO service might assist you in understanding your company’s finances, producing customized forecasts, or formulating a fundraising approach for a short or one-time engagement.

What is the Difference Between a Fractional CFO and an Interim CFO?

According to Nelson Tepfer, a temporary CFO differs from a fractional CFO (part-time CFO) because the interim job is short-term. An interim CFO fulfills an area between a company losing its full-time CFO and filling the vacant position. A fractional CFOs’ services are continual, but their weekly hours are limited to part-time.

Fractional CFOs are often considered more strategic, while Interim CFOs are more operational. Fractional CFOs work with a company to help them grow and scale, whereas Interim CFOs help to keep the company running smoothly on a day-to-day basis.

Another key difference is that Fractional CFOs are usually brought in when a company is doing well and looking to take things to the next level. In contrast, Interim CFOs are typically brought in during times of crisis or transition.

What does a fractional CFO do for Growing Businesses?

A fractional CFO is a crucial functionary who serves many responsibilities in a business, including:

Ensure a Proper Financial Foundation is in Place

As a company grows, its financial processes grow increasingly complicated for the founders to manage. They need someone who can see the whole picture through the nuts and bolts of financial reporting and accounting to maintain their economic health.

This is where a fractional CFO comes in to clear a path through the web of numbers and statistics.

Nelson shares that “as the lifeblood of every small business, cash flow can be a big issue. Small businesses may struggle with getting funding, building their company strategy, and figuring out why their profit margins are shrinking. These are all symptoms of bigger problems that a fractional CFO can help with. A fractional CFO brings experience and expertise to recognize symptoms and build a financial function that will support the business’s goals. This can help small businesses get back on track and be successful.”

A fractional CFO is vital for small businesses, as they provide the financial stability and foresight required to maintain a company’s health and growth.

Help Manage Growth

One of the main benefits of having a fractional CFO on your team is that they can help manage growth. If you’re seeing consistent growth in your business, it’s essential to have someone on your team who knows how to handle that growth and ensure it’s sustainable. A fractional CFO can help you do just that.

For instance, when looking at a potential acquisition, it’s essential to look at more than just the numbers on paper. It would be best to consider how the company would fit with your existing business. Would the acquisition help you to achieve economies of scale? Would it give you access to new markets or technology? What would be the impact on your existing employees? These are all important factors to consider before making an offer. Of course, you also need to ensure that the company is a good financial fit for your business. But by taking a holistic view of the acquisition, you can avoid making a mistake that could cost your business dearly in the long run. 

These are the considerations a Fractional CFO can bring to the table to ensure that you make the best decision for your business.

Implement Systems and Controls

When businesses grow, they must create more effective procedures to address their fluctuating needs. This necessitates the oversight and direction of someone who has implemented numerous systems in various situations. Someone who’s seen it all can anticipate what might go wrong and how to address it before it happens. A fractional CFO may draw on their experience to guarantee that the business is always moving forward, even when changes occur.

For example, there was a company whose invoicing process was inefficient. It would often take them four to six weeks to send out an invoice after completing a project. Nelson recognized this was a legacy issue from when the company was much smaller. At that time, a single person was responsible for a checklist of six items that needed to be completed before an invoice could be sent out. As the company grew, those six items became the responsibility of six different people or teams. However, no one took the time to reassess whether this was still the most efficient way to do things. As a result, being a fractional CFO, Nelson helped them implement systems to streamline their process so that invoices could be sent out within five days. This helped improve their efficiency and better meet the needs of their clients.

To Sum Up

A fractional CFO is a financial expert with an extensive background in many areas who works part-time and relieves startups of high expenses. Hiring a fractional CFO is the only way for a young business to gain access to best-in-industry knowledge without having to pay through the nose for it.

It’s a win-win situation like all great business models.

Of course, once startups grow large enough, they may find that having a full-time CFO makes good business sense. Those who are still learning the ropes, on the other hand, should think about employing a fractional CFO at any time.