Selling relationships

Two things that really appeal to me are story and relationship. Couple them together and you have a very powerful combination.  Over the years, the clients I enjoy working with the most have a great story. This story can be their product but not always.  Sometimes, it’s the entrepreneurs personal “why” or what they overcame, against the odds, to get to the point where they are! Possibly, the client is working on a new drug to conquer a previously incurable disease, but just as likely is a grown child of a parent who worked two jobs to keep the lights on and food on the table.  Even more often, it’s just someone doing the ordinary in an extraordinary way.  The one thing they all have in common is that they all have a story! And in that story, the business owner is the HERO! Why? Because the only reality that any of us can know is first person! Everyone else is just a character in that reality! 

To you, You Need a CFO is simply a character in YOUR story.  We act as a guide along your journey, a resource.  Although we have knowledge and experience involving most situations you may encounter, we have found the vast majority of gains come from structure and intentionality through a collaboration in utilizing our services.  Through our structured guidance we will regularly review, monitor, and adjust as needed. This regular dedicated time is a simple but highly effective method to obtaining the business you want.  

Simple, but not easy, is a key concept of life.  If we are trying to lose weight, eat healthier, or get more sleep, all of these things have very simple solutions but NOT very easy solutions!   In relationship, using our collaboration method, we are able to help you state your goals, clearly see what these goals will take to accomplish, and get your buy-in to the those goals.  Along with this, we develop metrics, procedures, and controls so that the output of your business and the efforts of your staff are your goals!  

The highest and best use of relationship and story is shared experience.  At You Need a CFO, through shared experience, we want to help you achieve your desired outcome, visibility into your practice, or dedicating your focused energy right where it is needed. Relationship allows us to do more, do better together and that’s why…You Need a CFO!

What type of CFO do I need?

It should come as no surprise that there are different types of CFOs, but perhaps you have never thought about it that way.  I worked for a CEO once who had experience with a lot of different venture capital entities. He said there are different stages of a company, where the CEO is guiding the Company with a singular vision to get the Company to the goal.   These stages are proof of concept (is there a market for your product?), revenue generation, net profitability, one million of revenue, one hundred million, & then public offering.  He then said something that struck me powerfully, he said each stage of CEO is a different guy! After hearing this it’s one of the most striking characteristics of the leader.  

Similarly, there are different types of CFOs.  In addition to size (or stage) of company, many CFOs will have specific insight into different size companies or of a certain niche, group of niches, or types of companies.  Certain CFOs may specialize in taking companies public, taking companies private, or working with inventory or logistics. 

Beyond these obvious differences, there is one more crucial distinction that we must talk about.  The two main types of CFO services are strategic advisory and fractional services. The latter, fractional, is comprised of an individual that works with a very limited number of companies in a very direct and often operational capacity. This type of CFO is in constant contact with management and staff of the company and is an integral part of the operations. This can be very beneficial for companies trying to build structure for growth and/or those who may be close to hiring a full time CFO.

The second type of CFO service, and that is what we focus on, is CFO advisory.  Under this service we help develop a strategic plan, develop a budget and a rolling forecast, identify and monitor drivers, and set up a dashboard for you to track your metrics.   We will meet monthly to evaluate how your metrics track to your goals, make adjustments to that relationship, and discuss scenarios whereby driving results towards your goals.  Regardless of the type of guidance, it is a critical part of your business and that is why..you need a CFO!

You Need a CFO

The first blog post reminds me of an anecdote I’ve heard many times related to music. A band gets discovered and prepares to publish its first album. The band has been working on its music for years, narrowing a catalog of work down to just eight songs. Naturally, those are going to be the best eight songs, making the album akin to a greatest hits collection! Then comes the record deal, and their contract requires them to create eight new songs within a very compressed timeframe. The second album comes out but doesn’t receive the same acclaim. Is that really how it works?

As this is my first post, I want to share thoughts I’ve been reflecting on for years. However, my thinking is rooted in abundance. With an abundant mindset, I believe creativity doesn’t run out, nor is it rationed over time. The more you create, the more creative you become.

My worldview is based on the Bible, which teaches that we are created in the image of a being who speaks the language of reality. God speaks things into existence. As reflections of this, we were made to create, and our capacity to do so is endless. Therefore, creativity begets creativity!

One deep spiritual principle I’ve observed repeatedly is that you attract not what you want, but what you are. Creativity is no exception. The more you exude creativity, the more it flows to you.

Many years ago, I worked in the timeshare division of a Fortune 100 hospitality company. I was making very good money, loved my job, and respected the management. One day, during a conversation with my boss, he mentioned that he could earn much more by adding value to multiple companies. I was shocked! That path had never occurred to me, and in my mind, I interpreted it as “time-share CFO services.” At that moment, it felt as if I had invented the concept.

Of course, that’s far from true—I’m not even sure if I was the one who came up with the idea. Maybe I just understood what my boss was explaining. Regardless, the concept resonated so deeply with me that it felt like my own. Over the years, I’ve been able to build upon it, refine it, and make it my own.

This brings me to the two main points of this post: first, why you need a CFO, and second, why a fractional CFO is the best investment for your small company.

1. Why you need a CFO:
   For most small companies, a full-time CFO is unaffordable. Yet many entrepreneurs desperately need the perspective of a financial professional. Companies with financial guidance have a far higher success rate. With a CFO and a CEO (Chief Entrepreneurial Officer), your company begins to form a board of directors that drives focus and strategic thinking. As a CEO, you need intentional time and people to pull you out of 24/7 problem-solving mode.

2. Why a fractional CFO is the best investment:
   My boss could have earned far more by creating greater value. When I work with clients on a fractional basis, I learn their systems, address their challenges, and provide tailored guidance. I gain almost a year of experience with each client, as if their business were my full-time job. Multiply this by a dozen or more clients annually, and you can see why fractional CFOs bring the equivalent of hundreds of years of experience.

As my client, you benefit from this collective experience and my network of resources, which provides deep knowledge and unique perspectives on countless issues. Whether your business is in its early stages or scaling up, the combination of broad expertise and cost efficiency makes it clear: YouNeedACFO.