Updated: Sep 12, 2022
A fractional CFO is a part-time or interim chief financial officer. They provide strategic financial guidance to businesses on a project basis. As the founder of a social impact business, a fractional CFO is exactly what you need to expand your reach, achieve sustainable financial growth, and affect positive change in the world.
Some would think that choosing a fractional CFO is as easy as a quick online search and a couple of clicks. However, you can’t just pick anyone; you need someone aligned with your purpose. In order to drive your mission and vision forward, you want a fractional CFO on the same page as you are. Ensuring they believe in your goals and purpose will make a vast difference to the success they can bring to your business.
Strategies to Find the Right Fractional CFO for Your Mission-Driven Business
Define Your Needs
Finding a virtual fractional CFO aligned with your purpose certainly takes effort, and the first step is to define your needs. Fractional CFO Gershon Morgulis says, “With a fractional CFO, you can get top tier talent and get as much as you need, while leaving both lower level and unrelated work to professionals in those fields.”
You may ask yourself the following questions:
- What type of assistance are you looking for?
- Do you need help with your budgeting, financial modelling, or raising capital?
- Are you in the growth stage?
- Do you aim to expand your reach and maximize your impact?
- What are your existing pain points and plans for the future?
- Do you need a pitch deck and financial model to attract investors and structure deals?
By defining your needs, you also refine your criteria for choosing a fractional CFO whose goals are the same as yours. Once you know what you need, you can start searching for a CFO with experience in those areas.
Do Your Research
There are fractional CFOs who work with enterprises in specific industries. Some of them also prefer collaborating with businesses with a certain revenue. Ideally, you want someone who has experience working with mission-driven businesses like yours.
You can explore your networks to find talent within your industry. Do your research, list potential CFOs, and visit their websites. Seek and read testimonials from previous or current clients. Look into their expertise, accreditations, and CFO services.
Most importantly, don’t forget to check their mission statement. This communicates their values, passion, and beliefs about the work they do. When their mission complements yours, you can be confident they could bring you closer to your purpose and social impact without compromising your business’s financial health.
Consult with Them in Person or Virtually
Finally, set up an in-person meeting or a virtual call with each prospective CFO. This is your chance to get a feel for whether they would be a good fit for your mission-driven company. Some questions you might want to ask include:
- Have you worked with companies in the same industry before?
- What type of services do you provide?
- How would you grow a company like ours?
- What are your expectations in working with us?
- Do your interests and work culture align with our purpose, vision, and culture?
CFO James Emerich believes taking the time to find a CFO aligned with your purpose ensures they will be a valuable asset to your team.
Importance of Aligning Your Business Purpose with Your Fractional CFO’s Values
- Smoother Collaboration
It’ll help create a harmonious working relationship between the two of you. If you’re on the same page from the start, it will be easier to communicate and collaborate effectively.
- Better Decision-Making
It’ll help ensure that the strategies and decisions made by the CFO are in line with your business purpose. This is crucial because they are responsible for making financial decisions that can have a big impact on your business.
- Improved Efficiency
According to CFO Archimedes Angeles, “[T]he CFO should ensure to maximize their contribution for business-continuity and process enhancements.” The right person will empower your business to deliver your purpose and help improve the efficiency of your work.
When you’re ready to hire a fractional CFO but unsure of how to find someone aligned with your purpose, book a call with Profit Reimagined Inc. now.
We at Profit Reimagined Inc. pride ourselves on our curiosity, expertise, and empathy. We take the time to understand how your social impact businesses work and why you do what you do. Then, we use our expertise to amplify your social impact, create a business you love, and maximize your profitability.