When Does Your Client Need a CFO?

We've all seen it: A business owner who thinks exit planning is something you do when you're ready to go to market; who equates exit planning with 'after life' planning; who is too busy in the weeds of running the business day-to-day to even think about thinking ahead; Or whose 'exit plan' is simply assuming their child will take over one day.

There are myriad reasons why otherwise savvy business owners neglect exit planning, but an unsolicited offer or a change in personal or family circumstances can shift a business owner's perspective on exit planning and timing. That's why it's crucial to have a business that's always prepared. ?A fractional CFO (or, as we like to think of ourselves, an embedded CEPA) can be the expert resource - and your ally - on the leadership team, every week, helping them to get ready and stay ready.

"The best way to get ready is to be ready and stay ready."

Value acceleration initiatives often span years, a fractional CFO can help maintain client focus and enthusiasm, ensuring long-term health, sustainable growth, and positioning the business for a successful exit in the future.?

When is the right time to bring in a CFO?

In our work with business owners, this is one of the most common questions we are asked. Fortunately, CEPAs know the answer to the corollary question... When is the best time to start exit planning? (The best time was when the business was started. ?The next best time is today!) ?Financial leadership is an investment, not an expense. A CFO can help your clients build their financial roadmap, optimize operations, navigate challenges, establish and document systems and processes, and enhance the effectiveness of the leadership team– i.e., helping grow sustainable and transferrable business value

Here are seven telltale signs for your clients that can provide you with the opening (excuses) to suggest they consider bringing on a CEPA-friendly CFO:

1. Are they frustrated with performance and cash flow?
2. Are they overwhelmed by the challenges of growth?
3. Do they know profitability by customer/product/service?
4. Do insights from financial data inform decision-making??
5. Do they have 1-3-5 year goals with a financial roadmap?
6. Is the leadership team on the same page, sharing a common vision?
7. Will the value of the business meet their goals?

There's no magic revenue number; the above challenges often signal a need for financial leadership. However, many businesses can't afford a full-time CFO's salary ($200k-$300k+), plus benefits & equity. Our highly experienced, C-level associates provide expertise on a part-time basis, making it a cost-effective solution for small and medium-sized businesses as they chart the path toward sustainable, transferable business value.

Core to our mission and culture at FocusCFO is that every associate, as part of their initial onboarding and training, is well-versed in Exit Planning and the Value Acceleration Methodology, through EPI-supplied training. These exit planning concepts are so core to our service delivery model that they are embodied in the FocusCFO mission statement: Helping Entrepreneurs Build Sustainable, Transferable Business Value.

We would love the opportunity to connect with you and to learn more about how we can partner together to work together for the mutual benefit of our clients.

We invite you to develop a relationship with a FocusCFO Area President in your local market. A list of Area Presidents can be found on the ‘Our Team’ section of our website. If you do not see an Area President in your local market, complete the contact form to be connected with an Area President.

FocusCFO is a strategic partner of the Exit Planning Institute.