A fractional CFO can help you create your business plan, which is crucial to set up your business for success. Failing to have a business plan is failing your business. If you want to set up your staff and yourself for success, then it’s time to make a concrete plan that is not just all in your brain. Getting all your ideas out of your head will help you clarify your company's direction for you and your key leaders.
Ultimately a business plan is a maps out ]your company, products, your competitors, your management team, your financial health, and the risks you can afford to take.
Why You Need A Fractional CFO To Help With Your Business Plan
A business plan is crucial at any stage, but ultimately, you need one to grow your business. You must remember that existing companies need planning too. It’s important to know where to allocate your resources and establish a strategy a growth.
Ultimately, you can leverage your business plan to help you figure out your next steps for growth. Having a business plan will help you navigate questions such as:
Should I rent or purchase space?: These two things are usually a fixed cost. Having a business plan can help you see all your fixed costs and figure out if renting or buying space is something you can do and ultimately see if your prospective growth justifies taking on this increased fixed cost.
Should I hire additional staff?: A factor that determines if your business is growing is if the demand for your products and services are growing. Are you adding more customers or increasing their life time value? As you do this, your staff may reach their capacity, which is when you ask the question, “Do I hire additional staff?” It’s another new fixed cost. Your business plan will help you see how new people can help your business grow and prosper.
Do I add another product?: Your business plan can help see what's going to happen in the long term and if another product could benefit the growth of your business. Your business plan will help you see which product or service is currently bringing in the most revenue for you and help you decide what to build on.
How a Fractional CFO Helps You Establish a Business Plan
With the help of a fractional CFO, a business plan can help you establish better financial habits for greater sustainability and long-term success. A financial mistake for a small business is dire to its survival and sustainability, and truthfully, small businesses. As your business grows, you need to be able to make solid and informed plan based on timely data.
Ultimately, a business plan crafted with the help of a fractional CFO will bring you so much freedom and headspace to make the decisions you need to grow your business.
A Fractional CFO Helps You Take Healthy Risks
More than being a numbers person, a fractional CFO drives growth and handles complex situations while controlling costs. Aside from reporting on financial performance, the fractional CFO can translate business strategy into financial strategies.
First and foremost, a fractional CFO is going to want to know what is going on with your business. They will want to establish a relationship with the owner and know what is troubling to him or her, but they will also want to know what opportunities the owner sees for growth. To keep your business on track, a fractional CFO will need to know the key issues your company is facing financially.
This enables your fractional CFO to implement business plans for the bigger picture of your company. Their ability to synergize strategy and finance empowers them to suggest healthy risks for your company. If you need help establishing a business plan, book your call with Clarity!
A Fractional CFO Can Interpret Your Data
A fractional CFO can provide intelligence on things to tackle and target. They are able to zoom out, look at the bigger picture and tell you where your be
st chance for success is—what your strongest month is, what your strongest product is thus helping you perpetuate tough financial calls.
A fractional CFO should be seen as a trusted business partner as they make data-driven decisions and push your company toward effective financial strategies.
They take the data and use it to project helpful predictions for your business. They look at your budget, your sales, your revenue, and think through every single month. If there are any weak spots, a fractional CFO is able to help you make adjustments and help you make your business more profitable. This frees up a ton of brain space for you and you can focus on growth and forward moving activity.
A Fractional CFO Communicates Your Vision
A fractional CFO is great at clarifying the confusion that your financials can be, which can help your company establish key metrics. They’re able to make assessments like, “It’s better when we sell this x product instead of y product, because when we sell x product, we get more customers and a higher profit margin.” This can be so helpful as your team grows with your business. Often times as businesses grow, teams grow into departments, communication breaks down, and your staff forgets what drives sales and growth. A fractional CFO uses numbers and data to communicate the vision and performance, helping your staff sharply comprehend how their role specifically contributes to success. This keeps your employees focused and working for a common purpose.
Business Plans By Fractional CFO's
At Clarity Consulting, we know when one person doesn’t have a handle on all the areas, things fall through the cracks. Part time CFO services and fractional CFO programs can open up a whole new world of operational efficiency. We’ve worked with dozens of business owners to create a deeper understanding of their financials. Instead of confusing and boring excel spreadsheets, we help create a clear picture of current financials and financial forecasts.
In addition, we also provide administrative support for HR, insurance and taxes.
Clarity Consulting is there to help with the new employee onboarding process. We make sure they have filled out all their documents and get direct deposit set up. If there is ever a change in contact information throughout employment, Clarity Consulting changes it, freeing up the business owner to focus on growth.
We help companies with their annual General Liability and Worker’s Comp audits by gathering all the certificates throughout the year and sending the payroll report to your auditor.
We communicate with your CPA and make sure your CPA strategy is being implemented throughout the entire year.
If you’re a small business that looking for a partner to bring more leadership, communication, and experience, set up a free Clarity Call with us!