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Summit Insights
Feb, 24

How Fractional CFOs Play a Crucial Role in Helping SMBs Grow


In this episode of ITR Economics' Podcast Trends Talk, FocusCFO's associates Michael Stier (Area President, Carolinas) and Greg Gens (Area President, Northeast Ohio) shed light on the pivotal role of Chief Financial Officers (CFOs) in private businesses. The engaging discussion delved into the impact of a CFO's strategic insights, the emergence of fractional CFOs, particularly for businesses in the small to middle-market range (SMBS). Watch below or head to the ITR Economics website to listen on your favorite streaming platform.


Key Takeaways:

  1.  The Front Seat Navigator: Understanding the CFO's Value
    Michael Stier articulated the distinct value of a CFO, positioning them as partners who sit in the front seat with business owners. He explained that while accounting functions and bookkeepers focus on historical data, CFOs act as forward-looking navigators, aligning business goals with financial strategies.
"A CFO is the in-house trusted adviser who helps navigate where the business should be going, tying overall goals and strategies to a financial roadmap."
  1. Fractional CFOs: Tailored Expertise without Full-Time Commitment
    The conversation introduced the concept of fractional CFOs, emphasizing that many small to medium-sized businesses may not require a full-time CFO. Greg Gens highlighted the win-win situation where, by engaging the services of a business like FocusCFO, SMBs gain the benefit of a highly experienced CFO part-time, leveraging their expertise without the financial commitment of a full-time position.
"Fractional CFOs bring the benefit of decades of experience to businesses that would normally never have had access to that level of expertise."
  1. Success Stories: Celebrating Growth and Transitions
    Both Michael and Greg shared success stories, celebrating moments where businesses, under the guidance of CFOs, achieved significant growth or successfully navigated transitions. Notably, they highlighted the unique approach of celebrating when a client transitions to needing a full-time CFO, showcasing the positive impact of the CFO's contributions.

  2. Looking Ahead to 2024: The Importance of Scenario Analysis

    As businesses prepare for 2024, the conversation highlighted the uncertainty in the economic landscape. Stress testing and scenario analysis were underscored as essential tools for businesses to navigate disruptions, manage cash flow, and make informed decisions during uncertain times.

Empowering Businesses through Strategic Financial Leadership

The ITR Trends Talk episode featuring FocusCFO provided valuable insights into the strategic role of CFOs, the emergence of fractional CFOs, and the significance of proactive financial management. As businesses navigate the complexities of the current economic landscape, the expertise of CFOs proves instrumental in driving success.
"Knowing what's going on in the market is very powerful when you talk about your relationships with customers, vendors, and bankers."
- Greg Gens, Area President, Northeast Ohio

Ready to Unlock Your Business Potential? Schedule a Consult Today to Learn How Your Business Can Benefit Expert Financial Guidance!