Dan King //September 16, 2013//
Many companies are encouraged to outsource their non-core functions. This concept has ushered in a new era of consuming products and services and is especially relevant in the technology services sector such as software-as-a-service, or cloud computing.
Outsourced services provide a rapid, flexible way of doing business in a hyper-connected world, at a fraction of the cost in-house. Companies that use these services benefit because they pay only for what they need. Vendors offering these services reduce waste, which simplifies processes and saves money.
Another example of an outsourcing function is the role of the “fractional CFO”, as opposed to a traditional CFO.
A CFO is a key business partner and financial strategist for the CEO. They can develop financial strategies, sales pricing and operations, negotiate contracts and otherwise maintain the company compliance functions. The fractional CFO does all of this, too – but only as much as a client wants or needs.
For example, if you are an institutional investor-backed startup with fewer than 50 employees, odds are you don’t need a full-time CFO. The fractional CFO fills this roll for the company on an “as needed” basis.
So what are the key benefits of using a fractional CFO? Here are the top three:
If you are a CFO, what does this mean for you? Fractional CFO work allows for a better quality of life, expands your exposure to multiple companies and allows you to better set your schedule. Another great perk: fractional CFOs choose which companies they want to join.
If you are considering going out on your own, the fractional CFO route may be a solid option for you. It can be liberating to work for yourself. You can define, control and impact your own destiny. But it’s not easy, and many times you must learn by doing. A few pieces of advice:
If you decide to join the challenging world of the fractional CFO, I would love to hear from you about your experience.