Why you should hire a fractional business person

Introduction:

Many small to mid-sized businesses don't require full-time executive positions like a Chief Financial Officer (CFO) or Chief Operating Officer (COO) because they're cost prohibitive and usually there are not enough things for them to do. Experienced folks tend to come from high paying professions like investment banking, consulting, private equity, and venture capital and cost $250K or more. This is where the concept of a fractional CFO/COO comes in – offering the expertise of a seasoned executive without the full-time commitment.

1. Cost Efficiency:

The most immediate benefit of hiring a fractional CFO/COO is cost efficiency. Small businesses often struggle with the high salaries that come with full-time executives. A fractional CFO/COO, hired on a part-time or contractual basis, provides the same level of expertise at a fraction of the cost. Most of the time, you can get a fractional CFO/COO on your payroll starting from $1,500 a month.

2. Experience and Expertise:

Fractional executives bring a wealth of experience and expertise. They've typically worked in various industries and bring diverse perspectives and problem-solving skills. This level of experience can be particularly valuable for businesses looking to scale, navigate financial challenges, or undergo significant operational changes.

3. Strategic Focus:

With a fractional CFO/COO, companies can focus more on strategic planning and less on day-to-day operations. These executives can offer insights into financial management, business strategy, and operational efficiency, helping to steer the company towards long-term goals.

4. Flexibility and Scalability:

As your business grows, so do your needs. A fractional executive can scale their services up or down based on your current challenges and opportunities. This flexibility is incredibly valuable for businesses in a growth phase or those experiencing cyclical fluctuations.

5. Objective Perspective:

An external executive brings an unbiased perspective. They're not bogged down by company politics or history, allowing them to provide clear, objective advice. This can be crucial in making tough decisions or identifying areas of change that might be overlooked by an internal team.

6. Network and Resources:

Fractional CFOs/COOs often have extensive networks and can connect your business with other experts, potential partners, or investors. This extended network can be invaluable for growth and development.

Conclusion:

In conclusion, a fractional CFO/COO can be a smart, flexible, and cost-effective solution for businesses looking to add senior-level expertise without the commitment of a full-time executive. By bringing in seasoned expertise, companies can navigate complex financial landscapes, make informed strategic decisions, and set themselves up for sustainable growth. For businesses not ready to commit to a full-time executive role, a fractional CFO/COO can be the perfect stepping stone to future success.