top of page
CRCFO

10 Reasons Why Every Start-Up Benefits from a Part-time CFO

We have provided part-time CFO Services to start-up companies for over 20 years. Time and time again, a senior CFO has improved these companies’ fundability, operating health, and exit value. Here are ten reasons why every start-up company will benefit from a part-time CFO.


fractional CFO

1. Increase success in raising capital


A senior CFO is a key member of a strong management team, even on a part-time basis. He or she adds credibility and quality to the company’s financial model and projections, helps the CEO articulate the company’s financial vision, and efficiently negotiates and closes funding rounds.


2. Avoid big mistakes


Every company experiences a missed forecast, unexpected cost overruns, unbudgeted expenses, and other surprises. Senior CFOs are experts at anticipating the unforeseen, preparing for adversity, and minimizing the effects on the organization and its cash.


3. Optimize cash management


A part-time CFO provides solid forecasting and expense management to extend your company’s runway and buy time to create more value.


4. Improve company management


Experienced CFOs know how to manage financial and administrative tasks of all types. They know what things should cost and can quickly and favorably negotiate benefits, insurance, leases, bank lines, legal fees, outside service providers, and more. They make sure that accounting numbers are accurate and on time. They can fluently manage ancillary operations and departments so that your knowledge team doesn’t have to spend time on the back office.


5. Avoid groupthink


A good CFO knows how to constructively challenge a plan, proposal, number, or claim. It is their fiduciary responsibility and unique skill to bypass conventional thinking and force 360º problem solving to increase the chance of success.


6. Build credibility with the board and investors


Investors appreciate and value a senior CFO’s contribution. They know that a good CFO can be a trusted advisor and will improve the company’s and the CEO’s performance.


7. Increase the likelihood of refinancing


Companies that meet or exceed plans, manage cash and headcount well, have a history of delivering accurate, on-time financials, and report few negative “surprises” typically get high marks from existing investors. And happy existing investors attract new investors.


8. Create constituent confidence


A senior CFO reassures employees, creditors, suppliers, banks, service providers, and investors. This will improve your ability to attract better people, negotiate better terms, and operate more efficiently.


9. Increase the probability and price of an M&A event


More than 90% of exits are achieved through a company or asset sale—often early in a company’s evolution. M&A buyers, often public companies, will either drastically discount or totally avoid a young company with weak financial, administrative, and operational management because the integration pain and clean-up costs are too high. A part-time senior CFO can minimize the discount, friction, and transaction pain, yielding a higher return.


10. Get a return on your investment


A part-time CFO more than pays for their service, providing senior CFO expertise without a full-time employee headcount. Many startups use a part-time CFO for as little as five hours per month and can scale his or her involvement as the startup grows. As affordable as a part-time CFO is, how can you afford not to have one?


We Can Help

We are smart, nimble, and flexible. If you would like to discuss how Charles River CFO can assist your company with CFO and accounting services, please contact us at (781) 431-0420x1 or send us an email.

Comentários


Os comentários foram desativados.
bottom of page