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!