Updated: Sep 12, 2022
Are you trying to grow your social impact business?
Has your business for good reached the point where the finances are too complex to manage?
If you’re running a forward-looking business, a seasoned fractional CFO can be a game changer — especially if you’re in the growth stage. Many innovative and growing companies are starting to lean on fractional CFOs to drive growth. They can offer strategic guidance to help your business grow sustainably.
Working with a fractional CFO builds a capacity for future success. Let’s explore the benefits of growth stage support and the various growth stage support services that can help you scale your profits and your mission.
Growth Stage Support Services Offered by Fractional CFOs
There are many ways that a fractional CFO could support your business in its growth stage. And here are some of the growth stage support services your business might need.
Build a Cash Flow Forecast
Cash flow is a crucial factor in a business. Understanding your business’ cash flow allows you to improve it. Having a robust and reliable cash flow, in turn, enables your business to run efficiently — and it’ll allow you to invest more in your social impact initiatives as well.
A fractional CFO can build a cash flow forecast, which includes:
- How much cash your business generates
- When and from what sources cash is generated
- How much cash your business needs
- When your business will need cash
With an accurate and detailed cash flow forecast, you can be sure your business has enough cash for essential operations and financial obligations, such as paying suppliers, purchasing inventories, payroll and taxes. Knowing your future cash flow and positions reduces surprises and enables you to leverage opportunities.
Manage Weekly, Monthly and Quarterly Cash Flow
A fractional CFO identifies the weekly, monthly and quarterly reports needed to make informed growth decisions. They’ll ensure the proper KPIs are being tracked and used correctly, allowing you to grow your profit sustainably and ensure that your finances go toward furthering your vision.
Monitor and Analyze a Twelve Months Financial Forecasts
One critical contribution of a fractional CFO is providing financial forecasts. It will act as a blueprint to achieve growth in the most sustainable and efficient way possible. They can offer a short- and long-term view of your business to anticipate its trajectory and cash needs, so nothing catches you off guard.
The growth stage is sensitive and may require dynamic pivots in business and financial strategy. However, reevaluating your financial strategy shouldn’t come at the cost of your social impact business’s purpose. Your mission comes first, even in trying times. The financial forecast also includes:
- Develop detailed short, mid, and long-term financial forecasts
- Prepare budgets based on the financial forecasts
- Analyze future opportunities (e.g. products/services, customer segments, and markets)
Prepare Reports to Investors and Lenders
When looking for outside investments and funding opportunities, having a fractional CFO’s expertise can add a degree of credibility and trust to your reports. Investors and lenders can feel confident that your social impact business is handling itself and that they will receive accurate and timely financial reports.
In growing your business, you want to be confident in your business choices. Getting a fractional CFO can help you gain the confidence and knowledge to fulfill your financial goals.
If you want to learn more about hiring a fractional CFO and how to get optimal results to help more people, reach out to Profit Reimagined Inc. Our team would be happy to speak with you.
We at Profit Reimagined Inc. pride ourselves in our curiosity, expertise, and empathy. We take the time to understand how your social impact businesses work and why you do what you do — because we, too, want to effect changes in the world for the better. Then, we use our expertise to amplify your social impact, create a business you love and maximize your profitability.