The Fractional Or Part-time CFO

 

The idea of fractional use of a valuable resource has been around since the 1960s. It was pioneered by the vacation real estate industry when a French ski resort owner recognized few people could afford, let alone needed a resort condominium for all 52 weeks of the year. He addressed this challenge by dividing each room into 52 separate units of time. Using the slogan “stop renting a room, buy the hotel” he launched a world-wide marketing phenomena, the time-share industry . Units were sold to different owners, each of whom purchased the full use and enjoyment of the week that best suited their schedule, and at an affordable price. If a buyer needed more than one week a year, they bought as many units as they wanted. While other “bells and whistles” have been added through the years, over 4 million American families now own at least one vacation timeshare.

The concept of a fractional CFO is no different. Most businesses recognize the need for financial expertise on their management team. Many simply don’t need or cannot afford a full time CFO at a full time salary. Even if an owner or manager has the required skill set, a professional CFO can likely generate a better work product in less time. This in turn frees up the most valuable and scarcest resource of all, time. No successful entrepreneur ever launched a business with the intent of spending all day analyzing balance sheets, determining marginal profit contribution or dealing with bankers. They launch businesses to exploit competitive advantages in the manufacture, marketing or servicing of customer needs. Any time spent working “on the books” is time away from their real mission and original value proposition.

Retaining a part-time or fractional CFO presents a cost effective solution customized to a business’ exact needs, budget and life cycle. The key to a successful fractional CFO relationship, and the only way CFO America can meet its goal of adding value to every engagement, is to design and staff that engagement with someone who will not only understand your business and address your financial needs, but become an integral (if part-time) member of your management team. At CFO America, we’ll meet with you to understand your business and tailor an affordable  program to meet your needs. Together we will select a CFO and establish a regular schedule of dedicated time to service your needs. That schedule can vary from just a few hours per month to several days per week, and can be adjusted as future needs require. The client can terminate their fractional CFO at any time and for any reason without incurring additional costs, just as they would if he or she was an employee.

How can we help you?  What questions do you have about the role of a “Factional CFO” in your business or how CFO America can help you grow and prosper?

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