So, you know what a fractional CFO is. You’re aware that the scope of the work they can deliver is huge, and that their goal is to ensure your business succeeds. But now, perhaps you’re unsure if a fractional CFO is for you.

Here are four reasons why engaging with a fractional CFO could be the best idea for your tech start-up or scale-up.

1. You’re facing challenges


Starting or scaling a business is never an easy feat, especially in the Tech landscape. Certain areas are already saturated and breaking through the noise takes a huge amount of work. Other areas are so new, based on incredible innovation, that investors might be wary. But don’t be disheartened, even some of the most well-known brands today had trouble getting started – take Airbnb as a prime example.

Navigating financial challenges is likely to be the first hurdle you need to jump over to get your business either off the ground or to the next phase of growth. An expert fractional CFO will have vast experience in helping businesses secure funding from a range of sources. They’ll be able to work with you to create a crystal-clear financial strategy, a bulletproof forecast, and help mitigate financial risks; all of which are attractive assets to any budding investor.

Partnering with a fractional CFO can be a strategic move for tech entrepreneurs needing to overcome financial hurdles and propel your business forward.

Cash flow and budget

Perhaps you’ve secured funding, but now you’re needing to manage a lot of expenses. You’ve probably got a list as long as your arm of things you need to invest in, not to mention the expenses you’ve already got. Now’s the time to ensure you have a watertight cash flow management plan and a keen eye on your available budget.

But, as a business owner, you’ve already got one million things to do, so adding this to the plate might not be feasible. This is where a fractional CFO can shine. Leave that to them, and they’ll crunch the numbers for you as well as guide you and your business in the right direction.

2. You want a cost-effective finance team

An in-house CFO can be a large expense, one that some start-ups and scale-ups simply can’t afford. Even hiring a more junior finance team can add up, so having an expert join your business at a cost that suits you may be more digestible.

Fractional CFOs work, as the name suggests, for a fraction of time. And that time can be as much or as little as you need. Of course, how much they work for you can change as your business grows.

3. You want flexibility that matches your growth trajectory

Businesses ebb and flow, success is never linear. That may mean revisiting your services and chopping and changing outgoings to keep you going in the right direction. Where a fractional CFO can fully support the needs of a start-up or scale-up is their ability to be flexible. How much they work for you (and therefore, their cost) is dependent on your business’s requirements.

4. You want a tailored approach to your business

Fractional CFOs usually follow a client-led approach, which means how they operate and the services they provide are fully driven by where your business is and your current requirements. By using a fractional CFO, you can cherry pick the most important aspects of the services they offer to make a bespoke package that helps you to reach your business goals.

There are many reasons why a fractional CFO could be the best fit for your business. If one, some, or all the points above resonate with you, now could be the time to start thinking about contacting a fractional team to support you. Luckily, we know one!

Learn more about how the Fractional Finance team can support you by visiting our website here. If you like what you see or want to chat through anything in more detail, fill in our contact form and a member of the team will be in touch.