What if I told you my solution pays for itself?
Let’s think in simple numbers. If I had an idea for your business and it would save you $10K in expenses per year. I estimated it would cost $2K to implement and about $1K of annual fees for maintaining. It’s a win-win. Personally, I love working with companies with the “share the savings” type of business model. I would pay $2 for someone to turn it into $10 anytime. This is how I want to work with my clients.
My goal is to find enough ideas to save you time and money to pay for my services. If I can’t, then there is no need to hire me. Sure, I can prepare financials and add some clarity to your financial health. But, the value is in what I do with the financials. The value is the story behind the financials and where we want to take the story.
It’s always interesting to hear the question, “I need a Fractional CFO for my business, what’s your monthly or hourly rate?” Or, “I’ve grown my business to the point that I think I need a controller or CFO. How do I know?”
Most small businesses don’t have enough work or challenges for a full-time controller or CFO. I’ve seen companies hire a full-time controller or CFO and pay anywhere from $120K-$150K per year in salary. The company is also paying for benefits, vacation, payroll taxes, training, and office space for this person, which can drive the total annual expense up to $150K-$180K. That’s a monthly cost of at least $12,500! If the CFO can implement enough value through ideas to make up for the hefty price tag, then it may make sense for the small business to make the hire. It’s been my general experience the small business owner doesn’t need a CFO in the office eight hours a day.
A CFO’s role is to be a change-agent, strategist, and finance expert by owning the budgets and financials. They are the liaison between management and professional service providers (i.e. bankers). They are reviewing incoming correspondence from the IRS, states, and other regulatory agencies and determining the necessary response. Small businesses can only handle so much change in any given year. Sure, a good CFO could have several ideas that could save the company time and money, but the company may not have the capacity to implement the ideas.
Enter the Fractional CFO…
I offer companies a way to scale their business and ease into having a finance expert. Sure, there are always ideas that can save the business time and money, but it’s best to choose to implement the ideas that are the top priority for the business owner.
I can offer business owners clarity to the financial health of the company and understand the story the numbers are telling. The fun part is where we take the story!