The responsibility involved in leading and managing a startup, nonprofit or small business is a great one. Are you making the right choices? Will you run out of cash before your product will get to market? Is there a better, more efficient way to run the back office?
For these tough-to-answer questions on your own, you may be looking into financial consulting for startups or nonprofits—but you’re worried they are too pricey for your still-growing organization and their advice may not be applicable to your unique situation. This article explains how tapping startup CFO expertise and financial advisory services, on a fractional basis, could in fact be the most fitting solution at this phase of your company’s journey. Read on for what these services can entail (depending on your needs and budget) and what to look for in a startup CFO consulting firm.
The Role of a Startup CFO
A startup CFO introduces strategic insights to the financial operations of the company and the future of the company. CFOs have a unique skillset and mindset that combine granular finance and accounting knowledge with an ability to be future-focused and explain complex information to non-finance-minded leadership. Rarely part of the earliest stages of a company, a CFO becomes a necessity once the founding management team is ready to expand investor outreach, get the financial house in order, and seek out insights and a fresh, expert perspective on their plans.
When a growing company is not ready for a full-time CFO, and the compensation and benefits package that comes with the position, fractional CFO services offer a cost-efficient alternative. During the hours they work for the company, the startup CFO is completely dedicated to the needs of the company, and the overall cost is a fraction of what it would cost to compensate a full-time, more traditional CFO.
These CFOs have steep experience with startups and can offer best practices and ongoing expertise and mentorship as the company advances on its growth path. These fractional CFO services for startups may need to expand over time and evolve. With a flexible agreement, such as a fixed fee plan, that works for the budget and size of the startup, the services can be dialed up and down as needed. Click here to explore options.
Customizable CFO Services for Startups
Consulting firms that have steep experience with startups realize that there is no such thing as one size fits all when it comes to growing organizations. Ideally, the consulting firm will work closely with you to help you determine and prioritize the level and range of services a CFO/financial advisor can provide your company, and they will adapt their services to the unique needs of your organization.
As you research options for a financial consultant for startups, consider the following benefits of partnering with the right consulting firm:
Expertise as needed: The expertise of a CFO—their ability to focus on the finer details of the finances and the strategic plans of the entire business—is a unique one. Even though your organization is on the small side right now, and has limited funds, it still needs access to this level of expertise.
An adaptable financial advisory firm will work with you to find an agreement plan (such as a fixed fee arrangement) that works within your budget limitations, with flexibility to make changes as your needs evolve.
Best practices: What have other companies like yours (i.e., industry, size, stage of growth) done in similar situations? What can you learn from their successes (and even failures)? An expert CFO can relay past experiences that could apply to your company, and help you consider what can be learned and potentially applied to your company from those experiences.
Scenario planning and financial modeling for startups: Past experiences are helpful for considering their applicability to your startup and lessons learned—but you also need to have some sense of what’s going to happen if you make one choice over another.
Using timely, reliable information about your company’s past performance, plus a full understanding of what’s occurring in the market today, a fractional CFO can implement a forward-looking approach to your decision-making. What’s likely happen if you choose Scenario A over Scenario B, and how will each decision affect the state of your company and where it’s headed? When needed, the fractional CFO can help you think through the next moves your rising startup should make.
What to Look for in Startup Financial Advisory Services
What matters most to you when considering the level of expertise and access your company will need for a fractional startup CFO? Here are some questions to consider as you research options for a CFO/financial advisor that specializes in startup services.
Will they adapt their services to your unique company? When you first meet with the consulting firm offering fractional CFO/financial advisory services, do they seem to want to get to know the ins and outs of your company—or do they spend most of the meeting talking about their services? If you’re dealing with a limited budget, look into whether the firm can agree to an alternative fee structure to hourly billing.
How dedicated will the fractional startup CFO be? Partnering with a consulting firm means you can benefit from their wide range of experience and skills, as needed. For instance, you could outsource your entire accounting function to the firm or benefit from the services of an accounting expert for a one-time project, such as switching accounting systems. Will they be completely dedicated to your company’s needs during the hours they work with you? Will they become a part of the team, and aim to do what’s best for the company?
What should you know about the consulting firm? Comprehensive research for the right partner could include comparing services with different size firms, their range of capabilities, and considering the firm’s length of time in business and its experience with startups.
What to Look for in a Startup Financial Advisory Firm
While you may have an immediate need right now, you want to factor in how your organization will evolve. Will this new business partner be able to adjust its services as your company grows or changes strategy?
Let’s say your most immediate need right now is for someone to get your team up to speed on a new accounting system and a clear process for closing the books every month. Once you have access to better, timelier information about your business, you may want to know what you’re missing out on or you may want to pursue a new growth strategy. When needed, high-level finance leadership can help guide the CEO, the board, and other members of the leadership team, by affirming current plans or helping leadership see where another path may lead.
A company pursuing a major M&A transaction or an IPO will require more than occasional CFO-level input and guidance to become “investor ready” and complete the transaction, but for many early stage companies and nonprofits, their current state is where they want to be for now. They simply do not know whether they could be operating more efficiently and they lack the ability to properly plan for the future. CFO/financial advisor experts can expand on their day-to-day accounting operations to help the company get out of the status-quo mode and improve upon their situation.
Additional services could include:
- Mentoring or upskilling current members of the team.
- Preparing the company to be “audit ready” and liaising with the audit firm.
- HR-related services like payroll.
- Determining what is holding back the company or organization from moving forward.
How RoseRyan Can Adapt CFO Services to Your Startup
Working closely with startups since 1993, RoseRyan, a ZRG company, understands the pain points and challenges facing entrepreneurs and startup leaders—and also fully realizes that those challenges do not have a one-size-fits-all solution. We get to know the companies we advise and guide, and tailor our services to address the most immediate needs, always with an eye toward the future.
Looking for a fractional startup CFO solution? First, we want to learn more about your company. Fill out our contact form, and we’ll be in touch to learn more about the challenges facing your finance team and your overall business—so we can tailor our solutions to you.
Your Network = Your Net Worth: How you can turn connections into catalysts for success
You’re probably familiar with the cliché “It’s not what you know, but who you know.” While in fact you generally do need to have some kind of expertise to succeed in life, it’s certainly true that cultivating your connections to others can give you a definite advantage.
In the dynamic world of entrepreneurship, success isn’t just about having a groundbreaking idea or a stellar business plan; it’s also about the people you surround yourself with.
Just ask some well-known founders of highly successful businesses: Jack Dorsey (co-founder of Twitter), Brian Chesky (co-founder of Airbnb), and Sara Blakely (founder of Spanx). For all of them, building their networks and getting input from experienced confidantes was integral to their companies’ upward trajectories.
Let’s take a look at the transformative potential of networking and mentorship to open doors, provide invaluable guidance, and propel you to greater heights.
Building Bridges: The Art of Networking
Networking is more than just exchanging business cards at events; it’s about building meaningful connections, fostering relationships, and expanding your professional circle.
Whether it’s attending industry conferences, joining networking groups, or connecting with like-minded individuals online, networking provides invaluable opportunities to learn, collaborate, and grow.
Expanding Your Horizons
Networking exposes you to diverse perspectives, ideas, and opportunities that you may not encounter within your immediate circle.
By engaging with professionals from different industries, backgrounds, and experiences, you gain new insights, challenge your assumptions, and broaden your horizons.
Opening Doors
Networking creates opportunities for collaboration, partnerships, and business ventures.
Whether it’s finding a co-founder for your startup, securing funding from investors, or landing your dream client, the connections you cultivate through networking can open doors to new possibilities and propel your business forward.
Building Your Brand
Networking isn’t just about what you can gain; it’s also about what you can contribute.
By sharing your knowledge, expertise, and resources with others, you build credibility, trust, and goodwill within your professional community. This not only enhances your personal brand but also attracts opportunities and referrals to your business.
Guiding Lights: The Role of Mentorship
Mentorship is another invaluable resource for entrepreneurs, providing guidance, support, and wisdom from those who have walked the path before you.
Whether it’s a formal mentorship relationship or informal advice from seasoned professionals, mentorship offers invaluable insights and perspectives that can accelerate your growth and development as an entrepreneur.
Learning from Experience
Mentors bring a wealth of knowledge, experience, and wisdom accumulated over years of navigating the ups and downs of entrepreneurship.
By tapping into their insights and advice, you can avoid common pitfalls, learn from their mistakes, and make more informed decisions for your business.
Gaining Perspective
Mentors offer an outside perspective on your business, helping you see blind spots, identify opportunities, and challenge your assumptions.
Their constructive feedback and guidance can help you refine your business strategy, overcome obstacles, and stay focused on what truly matters.
Building Confidence
Entrepreneurship can be a lonely and challenging journey, but having a mentor by your side can provide much-needed encouragement, support, and reassurance.
Knowing that you have someone who believes in you, shares your vision, and has your back can boost your confidence and resilience in the face of adversity.
Cultivating Relationships: The Key to Success
Networking and mentorship are not just optional extras in the journey of entrepreneurship; they’re essential ingredients for success.
By actively cultivating relationships with your peers, seeking out mentors, and engaging with your professional community, you can tap into a vast reservoir of knowledge, experience, and support that can turbocharge your projects.
Invest in building meaningful connections, obtain guidance and advice from those who’ve gone before you, and watch as your network becomes a catalyst for growth, innovation, and achievement in your entrepreneurial endeavors.
At RoseRyan and our parent company ZRG, we understand the power of networking and mentorship in fueling business success. Our teams are dedicated to supporting connections, fostering relationships, and providing guidance to entrepreneurs at every stage of their journey. Count us part of your extended business community and reach out to us if you need some expert guidance.
From Blunders to Billions: Lessons From Steve Jobs & Beyond About Make-Or-Break Boards
The story of Steve Jobs’ tumultuous tenure at Apple—and the pivotal role played by the company’s board of directors in an at times bumpy ride—is now part of business folklore: a clash of personalities, a struggle for control, and ultimately, a realization that the business needed Jobs’ magic touch back at the helm.
While much attention is given to the boards of public companies such as Apple, private company boards face similar challenges, and can equally benefit from adopting best practices. As private companies navigate the complexities of today’s business environment, their boards of directors play a crucial role in ensuring effective governance, strategic decision-making, and long-term success.
Take the example of Publix Super Markets*. The largest employee-owned grocery chain in the United States (employees and former employees own an estimated 80% of the company), Publix represents a successful private company with a board that has expertly helped steer its achievements since its humble beginnings in 1930.
Publix is renowned for its emphasis on customer service and employee satisfaction, and is responsive to the need for strategic pivots. The company has been recognized for its progressive employment practices and community involvement, and its board exemplifies a savvy approach of aligning with employee-owners, injecting fresh outside perspective, and ensuring consistent strategy execution over many years.
From setting clear goals to navigating risk, a strong board of directors acts as a guiding force, ensuring the right decisions are made and a company stays on track for positive long-term performance. Without a well-functioning board, even the most brilliant ideas can go off the rails.
Drawing lessons from Apple and Publixs’ journeys, here are some critical best practices that private company boards should embrace to be effective:
When operating effectively with the right mandates and members, a board provides the right direction, strategic vision and course corrections needed to guide an organization towards great achievements. Lack the proper board leadership, however, and even the most promising venture can veer off track with catastrophic consequences.
Critical functions your board should be performing include:
Getting board governance right is imperative: the rise, fall and resurgence of Apple, and the long ongoing success of Publix underscores just how critical the power and influence of a company’s board of directors can be in determining its accomplishments or failures.
To ensure your organization’s board is a catalyst for success—not a potential pitfall—tap into the expertise that RoseRyan and its parent company, global talent advisory firm ZRG Partners, can provide. Reach out to us today to find out how we can help.
*Publix CEO Joins Board of Directors
Beware: Is Your CEO a Fake? How to Spot AI-Powered Scams.
Imagine jumping on a video call with your CEO, CFO, and other members of your leadership team. As the virtual meeting wraps up, they forward you an invoice and instruct you to pay the new vendor millions of dollars for a new, custom AI buildout that will save the company 50% in SG&A costs and increase sales potential by an additional 25% in five years.
Your gut may tell you something doesn’t feel right about the request, but given the excitement generated in the company for this paradigm-changing technology, during the video call with your leadership team, you process the payment anyway. Days later, the payment is flagged, and your CFO gives you a call asking why the cash account was drained. (And that is the nice version of how that call would go!)
A similar scenario happened to a multinational company in Hong Kong. Scammers used deepfake AI technology to create a realistic, virtual meeting with “a CFO & other leaders” and an employee. The scammers were able to trick the employee into sending $25 million to their account.
While new technology brings the promise of improved productivity in future, it also creates a new plethora of risks for organizations.
Larry Hartmann, the CEO of RoseRyan’s parent company, ZRG Partners—a Global Talent Advisory firm—provided the following tactics that employees can use to help protect their companies from this type of scam:
It takes the collective effort, awareness, and vigilance of ALL employees; a strong cybersecurity and IT function; and strong internal controls to protect an organization, its employees, and its customers from bad actors in the world today.
RoseRyan and the greater ZRG Partners organization are here to help!
If you’re feeling unsure about how secure your organization’s systems and tech applications are, get in touch with us to ensure peace of mind.
Take Back Your Time: Tech Tools That Work For You, Not Against You
Need a map just to navigate your work apps? Tired of the endless hunt for vital data scattered across a myriad of tech tools? Drowning in a sea of logins, passwords, and forgotten bookmarks? Having to repeatedly interrupt colleagues to find out what you need? You’re not alone.
Inefficient technology and systems puts outsized demands on our time and attention. Studies show* employees waste precious time hunting for information and bushwhacking through a jungle of tools: to the tune of a whopping 1.5 days per week. In a typical day, workers spend 59 minutes searching for data scattered across tools like Google Workspace, Dropbox, and Slack.
The fragmented nature of common work processes can lead to technological and cognitive overload, resulting in work avoidance, trouble concentrating, decreased productivity and poor decision-making — not to mention stress and exhaustion.
Dr. Rebecca Hinds of Asana’s Work Innovation Lab emphasizes the importance of well-integrated tech solutions: “Workers are acutely aware that too many tools and processes are creating time drains, and they’re yearning for a reset.”
To combat the detrimental effects of this overwhelm and improve overall well-being, it’s crucial to provide employees with the right tools and training, enabling them to work more efficiently and effectively. Imagine the alternative:
RoseRyan can help you cut through the chaos and streamline your team’s workflow with our integrated tech stack solutions and fractional support. We’ll help transform your office from a frazzled tech trap with better efficiencies and systemsto optimize your operations, keep information flowing freely and prevent employee burnout.
Ready to simplify your tech landscape and empower your team to focus on what really matters: working smarter — not harder — to achieve their goals? Reach out to RoseRyan today and discover how we can help you achieve a harmonious, stress-free tech environment in the office.
*(HCM Tech report)
New Season, New Services! Our growth means big things for yours…
As the flowers bloom and the days grow longer, spring brings with it a sense of renewal and possibility. At RoseRyan, we’re embracing the spirit of the season by unveiling a range of exciting new services designed to meet the evolving needs of our clients.
With a focus on innovation, quality, and client satisfaction, we’re excited to unite with our parent company — global talent advisory firm ZRG — as part of its Interim Solutions Group, and to introduce these offerings to our valued clients as we continue our journey of growth and excellence together.
In addition to our exceptional outsourced, on demand Finance and Accounting consulting services, we’re thrilled to announce that since the acquisition of RoseRyan in 2022 by ZRGwe are now empowered to provide an expanded array of support to our clients:
Interim Support:
Whether it’s filling a Controller, Marketing Manager, IT Director, HR Administrator or any other role, we can provide interim support across all functions.
Executive Search:
Leveraging retained search capabilities, we specialize in recruiting for director-level positions and above.
Embedded Recruiting:
Our skilled and dedicated recruiters can seamlessly integrate into our clients’ in-house talent function for a specified duration.
Culture & Management Consulting:
Culture: We offer comprehensive, tailored culture solutions, along with standalone products and services, to expedite culture transformation and meet your business objectives.
Management: Our focus areas encompass business acceleration, change enablement, executive coaching, leadership development, leadership team alignment, organizational alignment, and post-merger execution.
Embrace the change with us and let’s elevate your business to new heights.
Want to know more? Reach out to us to find out how our increased offerings can help your organization flourish!
A New Chapter For RoseRyan! What It Means For You
This week RoseRyan reached a new milestone in its journey – integration into ZRG’s Interim Solutions Group. We’re excited about the opportunities this brings to our clients and colleagues.
Broader Talent Solutions and More Opportunities
ZRG is a global talent advisory firm providing solutions for clients’ most complex talent issues. Their core offerings include executive search and on demand talent offerings to address project-based work and help backfill open roles with specialized talent. Their consulting and advisory solutions focus on key issues like culture, strategic alignment, coaching and organization optimization.
Going From Strength to Strength
As we reflect on where we have been, we’re pleased with where we are today, and are welcoming the next stage of our journey. As we look forward, we’re excited that our entire team will now have a wider set of offerings across the globe to bring to our clients.
In the coming months you will hear more about ZRG and its offerings.
Here’s to an exciting future!
What to Look for in Fractional CFO Services That Will Adapt to Your Startup, Nonprofit or Growing Small Business
When a company is ready for finance leadership and strategic guidance but not yet ready for a full-time CFO, a fractional CFO can be the answer. Fractional CFOs help startups, nonprofits, and small and medium size businesses build off their early success, to make smart financial moves, improve financial health, and prepare the company for an even brighter future.
Here’s a helpful lowdown on fractional CFO services, including what to look for and what to think about when making a fractional CFO services agreement.
What Is a Fractional CFO?
Here’s the simplest definition of a fractional CFO: A fractional CFO brings senior level experience to startups, nonprofits, and small and medium size companies for a set number of hours or on an as-needed basis.
Whether you opt for a fixed fee rate that depends on the range of accounting services needed, or pay by the hour, fractional CFO services can be a scalable, cost-efficient solution for your company. This role tends to be most fitting for venture-backed companies that are seeking out CFO expertise at a doable price point while enabling the company to stay flexible in its early growth stage. Fractional CFOs have steep experience in this role, so they can seamlessly lead the finance team once they get to know your business. Depending on your budget and your needs, their responsibilities can include:
A company starts looking into fractional CFO companies when they know they need the specialized expertise of a CFO but are not prepared for the salary, benefits and commitment associated with a full-time, traditional CFO. Fractional CFOs dedicate a certain number of their working hours toward the company per month.
The Benefits of a Fractional CFO for Startups and Nonprofits
A fractional CFO fills a critical need at a critical time in a young company’s growth journey. Here are some of the other benefits of fractional CFO services:
A fractional CFO is a cost-effective solution. Wary of hiring a full-time CFO yet know your company is missing the level of expertise and insights that only a CFO can provide? A fractional CFO does not come with the overhead associated with a full-time senior executive.
Fractional CFOs bring strategic guidance and expertise. For companies that have yet to benefit from CFO expertise, fractional CFOs introduce a new layer of guidance and experience that will lead to actionable insights and better informed decision-making. Their strategic advice ensures that the company’s choices factor in the company’s financial position, and current and future market conditions.
Fractional CFOs offer scalability and flexibility. Hiring a fractional CFO is a step toward scaling the finance organization, an ideal solution for companies anticipating growth.
When to Look Into Fractional CFO Companies
Is it time for your company to make a strategic change? Has the board expressed interest in CFO-level expertise? Are the majority of leadership’s decisions based on instincts—or real data and insights? Is the finance organization running smoothly or constantly falling behind (i.e., do you have a monthly close process)? A fractional CFO can lead the finance team with systems and processes appropriate for the company’s size and growth stage. And the fractional CFO can help the company pursue and make the right strategic moves.
Consider some of the many reasons to add a startup fractional CFO to your organization:
You need the long view. A CFO’s mindset is strategic at all times. Close attention is paid to historic trends and current data points to inform what moves to make, whether they are considering potential growth or exit strategies. A fractional CFO can become an important mentor to leadership.
Your finance team is in need of leadership—as soon as possible. A fractional CFO can lead all fundraising efforts and explain the company’s potential to prospective investors like no one else can. This role can also be responsible for interacting with current investors and the board, as priorities are set and strategic initiatives are explored.
You need the unique expertise of a CFO. CFOs see connections between the numbers and the company’s narrative—they are uniquely qualified to not only explain what has happened but what it means for all stakeholders and the company moving forward.
When considering your options for fractional CFO companies, be sure to inquire about fractional CFO pricing (would a fixed fee plan be most appropriate for your company for now?), the job description and scope of responsibilities, along with the monthly cost. The best fractional CFO companies are transparent about their services, will adapt their services to your needs and budget limitations, and be up-front about what you can expect from them.
What Is the Cost of a Fractional CFO?
The cost involved in using fractional CFO services depends on the number of hours the CFO will be working for the company per month, and the scope of responsibilities involved for the rest of the fractional finance and accounting team.
You could inquire about a fractional CFO monthly cost that will work for your budget at this time; in any fractional CFO services agreement, you will want to have an understanding of the scope of responsibilities and how often the agreement should be revisited.
How RoseRyan’s Fractional CFO Services Can Help Your Company
RoseRyan, a ZRG company, tailors all our services to each client, bringing companies and organizations fractional finance expertise when and how they need it. This means we will work closely with you to determine which type of arrangement would make the most sense at this time, based on your budget, stage of growth and situation. Our deeply experienced, versatile consultants seamlessly integrate with the team to bridge leadership, talent or capability gaps, and unlock the potential in the business.
Looking for fractional CFO services? First, we want to learn more about your company. Fill out our contact form, and we’ll be in touch to learn more about the challenges facing your finance team and your overall business—so we can tailor our solutions to you.
How to Find Fractional Controller Services for Startups, Nonprofits and Growing Businesses
The first controller is a significant milestone for a startup, nonprofit or growing company, and a fractional controller could be the first one to fill the role. For a set number of hours per month, fractional controllers take the organization to the next level—a place where the financial information is timelier, more reliable, and integral to making sound decisions.
How to start the process of looking for a fractional controller? You’ll need to know what the role of the fractional controller entails and how a fractional controller company can tailor their services to the unique needs of your company.
What Is a Fractional Controller?
Consider the definition of a fractional controller: Fractional controllers manage the accounting and finance organization of startups, nonprofits and small and medium size companies for a set number of hours per month, for a fixed fee. A fractional controller is a cost-effective solution for introducing a particular level of expertise to the finance organization without having to hire a full-time controller before the time is right.
What Do Fractional Controllers Do?
While the full scope of responsibilities varies, a fractional controller’s responsibilities can, at a minimum, include overseeing the finance operations, ensuring bills get paid, handling the month end close, and producing standard financial statements. Depending on the agreement with the fractional controller consulting firm, fractional controllers may also be asked to prepare monthly financial reports, including reports for management, the board of directors and investors. Ensuring the company follows generally accepted accounting principles, fractional controllers may also oversee and manage the annual audit process.
Sound like a lot? The responsibilities can vary for a fractional controller—depending on your budget, the company may gradually begin relying on this role, by starting out with a fixed fee arrangement, and then revisit the range of responsibilities as the company grows.
When Do Companies Need a Fractional Controller?
For startups and growing organizations, the fractional controller role can fill an essential need as the organization outgrows being able to heavily rely on only bookkeeping services. A fractional controller accustomed to joining teams with little ramp-up time can adapt quickly to the culture of the organization and get it up to speed with best practices and proven processes that will provide leadership with timely, more reliable information.
For example, with RoseRyan’s fractional controller services, which are adaptable to an organization budget limitations, the fractional controller can help the company decide when the time is right to revisit the parameters of the role and also consider the advice of a fractional CFO is needed.
When Startups Need Fractional Controller Services
The best fractional controller companies adapt their services to their clients. We recommend looking for proactive, pragmatic and highly experienced fractional controllers who will adapt to your company. Here’s why a fractional controller could be a fitting leader for your finance function:
It’s a cost-effective solution. Companies gain financial management expertise from a consulting professional who is experienced and ready to become a part of the team on day one, and they are not responsible for that person’s compensation or benefits.
It’s flexible to your company’s needs. As your company grows, the fractional controller could help you expand the finance organization or connect your company with resources for a full-time controller. Partnering with a resourceful consulting firm means you have access to all levels of the finance organization as needed, including CFO level guidance, technical accounting expertise and additional accountants for a particular project.
It’s likely overdue. Strategically and holistically minded, controllers bring a fresh perspective and finance leadership to small finance organizations bursting at the seams. Their sage advice ensures the company will make fully informed decisions going forward.
What to Expect from a Fractional Controller
Effective, insightful fractional controllers look out for the company’s best interests. Bringing their experience at organizations likes yours, fractional controllers are:
Future-focused: They are concerned not only with where the company has been, but also what’s really happening now and where it’s going.
Strong communicators: The best controllers help others understand what the numbers all mean, tell the story and use their knowledge to ensure the company stays informed and healthy.
Bridge builders: Controllers are master communicators—they know the right questions to ask to ensure the finance function is aligned with the rest of the organization’s needs.
What Are Fractional Controller Rates?
The cost of a fractional controller depends on the scope of the role, including the number of hours they work per month. Established consulting firms that have worked with hundreds of startups, like RoseRyan, can work with your budget, to determine if a fixed fee or hourly fee makes the most sense for your company.
How RoseRyan’s Fractional Controller Services Can Help Your Company
RoseRyan, a ZRG company, will recommend solutions based on your organization’s best interests and future prospects. So, whether you’ve reached out to us for fractional CFO services, fractional controller services, or an outsourced day-to-day accounting team, we will help determine which type of arrangement would make the most sense at this time, based on your budget, stage of growth and situation. Our deeply experienced, versatile consultants seamlessly integrate with the team to bridge leadership, talent or capability gaps, and unlock the potential in the business.
Looking for a fractional controller? First, we want to learn more about your company. Fill out our contact form, and we’ll be in touch to learn more about the challenges facing your team—so we can tailor our solutions to you.
The Essential Guide to Startup CFO and Financial Advisory Services
The responsibility involved in leading and managing a startup, nonprofit or small business is a great one. Are you making the right choices? Will you run out of cash before your product will get to market? Is there a better, more efficient way to run the back office?
For these tough-to-answer questions on your own, you may be looking into financial consulting for startups or nonprofits—but you’re worried they are too pricey for your still-growing organization and their advice may not be applicable to your unique situation. This article explains how tapping startup CFO expertise and financial advisory services, on a fractional basis, could in fact be the most fitting solution at this phase of your company’s journey. Read on for what these services can entail (depending on your needs and budget) and what to look for in a startup CFO consulting firm.
The Role of a Startup CFO
A startup CFO introduces strategic insights to the financial operations of the company and the future of the company. CFOs have a unique skillset and mindset that combine granular finance and accounting knowledge with an ability to be future-focused and explain complex information to non-finance-minded leadership. Rarely part of the earliest stages of a company, a CFO becomes a necessity once the founding management team is ready to expand investor outreach, get the financial house in order, and seek out insights and a fresh, expert perspective on their plans.
When a growing company is not ready for a full-time CFO, and the compensation and benefits package that comes with the position, fractional CFO services offer a cost-efficient alternative. During the hours they work for the company, the startup CFO is completely dedicated to the needs of the company, and the overall cost is a fraction of what it would cost to compensate a full-time, more traditional CFO.
These CFOs have steep experience with startups and can offer best practices and ongoing expertise and mentorship as the company advances on its growth path. These fractional CFO services for startups may need to expand over time and evolve. With a flexible agreement, such as a fixed fee plan, that works for the budget and size of the startup, the services can be dialed up and down as needed. Click here to explore options.
Customizable CFO Services for Startups
Consulting firms that have steep experience with startups realize that there is no such thing as one size fits all when it comes to growing organizations. Ideally, the consulting firm will work closely with you to help you determine and prioritize the level and range of services a CFO/financial advisor can provide your company, and they will adapt their services to the unique needs of your organization.
As you research options for a financial consultant for startups, consider the following benefits of partnering with the right consulting firm:
Expertise as needed: The expertise of a CFO—their ability to focus on the finer details of the finances and the strategic plans of the entire business—is a unique one. Even though your organization is on the small side right now, and has limited funds, it still needs access to this level of expertise.
An adaptable financial advisory firm will work with you to find an agreement plan (such as a fixed fee arrangement) that works within your budget limitations, with flexibility to make changes as your needs evolve.
Best practices: What have other companies like yours (i.e., industry, size, stage of growth) done in similar situations? What can you learn from their successes (and even failures)? An expert CFO can relay past experiences that could apply to your company, and help you consider what can be learned and potentially applied to your company from those experiences.
Scenario planning and financial modeling for startups: Past experiences are helpful for considering their applicability to your startup and lessons learned—but you also need to have some sense of what’s going to happen if you make one choice over another.
Using timely, reliable information about your company’s past performance, plus a full understanding of what’s occurring in the market today, a fractional CFO can implement a forward-looking approach to your decision-making. What’s likely happen if you choose Scenario A over Scenario B, and how will each decision affect the state of your company and where it’s headed? When needed, the fractional CFO can help you think through the next moves your rising startup should make.
What to Look for in Startup Financial Advisory Services
What matters most to you when considering the level of expertise and access your company will need for a fractional startup CFO? Here are some questions to consider as you research options for a CFO/financial advisor that specializes in startup services.
Will they adapt their services to your unique company? When you first meet with the consulting firm offering fractional CFO/financial advisory services, do they seem to want to get to know the ins and outs of your company—or do they spend most of the meeting talking about their services? If you’re dealing with a limited budget, look into whether the firm can agree to an alternative fee structure to hourly billing.
How dedicated will the fractional startup CFO be? Partnering with a consulting firm means you can benefit from their wide range of experience and skills, as needed. For instance, you could outsource your entire accounting function to the firm or benefit from the services of an accounting expert for a one-time project, such as switching accounting systems. Will they be completely dedicated to your company’s needs during the hours they work with you? Will they become a part of the team, and aim to do what’s best for the company?
What should you know about the consulting firm? Comprehensive research for the right partner could include comparing services with different size firms, their range of capabilities, and considering the firm’s length of time in business and its experience with startups.
What to Look for in a Startup Financial Advisory Firm
While you may have an immediate need right now, you want to factor in how your organization will evolve. Will this new business partner be able to adjust its services as your company grows or changes strategy?
Let’s say your most immediate need right now is for someone to get your team up to speed on a new accounting system and a clear process for closing the books every month. Once you have access to better, timelier information about your business, you may want to know what you’re missing out on or you may want to pursue a new growth strategy. When needed, high-level finance leadership can help guide the CEO, the board, and other members of the leadership team, by affirming current plans or helping leadership see where another path may lead.
A company pursuing a major M&A transaction or an IPO will require more than occasional CFO-level input and guidance to become “investor ready” and complete the transaction, but for many early stage companies and nonprofits, their current state is where they want to be for now. They simply do not know whether they could be operating more efficiently and they lack the ability to properly plan for the future. CFO/financial advisor experts can expand on their day-to-day accounting operations to help the company get out of the status-quo mode and improve upon their situation.
Additional services could include:
How RoseRyan Can Adapt CFO Services to Your Startup
Working closely with startups since 1993, RoseRyan, a ZRG company, understands the pain points and challenges facing entrepreneurs and startup leaders—and also fully realizes that those challenges do not have a one-size-fits-all solution. We get to know the companies we advise and guide, and tailor our services to address the most immediate needs, always with an eye toward the future.
Looking for a fractional startup CFO solution? First, we want to learn more about your company. Fill out our contact form, and we’ll be in touch to learn more about the challenges facing your finance team and your overall business—so we can tailor our solutions to you.
Trusted advisor or thought partner? Why the distinction matters
One reason we love being consultants? We’ll be honest, there are many reasons. Getting to work with a variety of companies and situations is a top one—but there’s also this: People listen to what we have to say. We’ve built up expertise that our clients can learn from, and that influences how they implement a change at their company or solve a challenge. This is the role that advisory firms like ours fill: Clients ask for guidance or a solution and the firm provides it.
Sounds great, right? You ask for something and get it. But sometimes, you may want more from your consulting partners. You may want them to be there for you as a trusted advisor or thought partner.
Trusted Advisor Vs. Thought Partner
Trusted advisors are reliable, go-to resources. As their longtime client, you’ve come to realize and accept that they are looking out for your best interest. You give them more challenging, more engaging work. You want to know more about what they can offer you. You value their expertise and you come to rely on it. They’ve become the first choice on who you turn to when their expertise, or service, is needed.
While the trusted advisor status is a coveted one for service providers—and mutually beneficial for both companies—the two sides continue to be on unequal footing. One company is handing down advice, and the other is reaching up to take it. If the service provider becomes a thought partner, they are a part of the team. They have reached the point where they know the company so well and operate as if they are a part of the company that they intrinsically know what’s best for the company and can act on it (as appropriate).
Thought partners are no longer observers who listen and learn about the company’s pain points and plans for the future—they are active participants in overcoming those pain points and leading the company toward its full potential.
Thought partners work with you to help you discover the answer. Their curiosity is catching. To find a good thought partner, look for someone who listens, understands and helps you see your situation from a different vantage point. You’ll end up with a better outcome.