Three Key Steps to the Fractional CFO Seat
Figuring out your niche — and what you can charge for it — is an essential first step for intrepid fractional CFOs, experts say.
Three weeks ago, on Wednesday August 16, 2023, CFO Drive magazine published a “Deep Dive” article “Three key steps to the fractional CFO seat: Figuring out your niche — and what you can charge for it — is an essential first step for intrepid fractional CFOs, experts say”.
This article was by veteran business magazine reporter Grace Noto, who earlier reached out to interview me on her subject.
This CFO Drive article begins as follows:
It’s the era of the part-time CFO: the financial leader who works flexible hours putting their unique skill sets to use at multiple businesses. As opportunities for this type of work expand, however, finance leaders who want to make the jump to fractional CFO work need to ensure they are covering all their bases.
A key step before taking on such a role is “knowing what it is that you bring to the table and what your specialty is,” said Michelle Delker, founder of The William Stanley CFO Group, a Wesley Chapel, Florida-based boutique fractional CFO and financial services firm.
Find your niche While some might think of CFOs as one-size-fits-all, that’s far from the case, with each leader bringing a unique background and experience to the job — Delker likened it to choosing restaurants, where two might serve the same type of cuisine such as Japanese or Italian fare, but specialize in different regions or cooking styles.
In the last segment of this CFO Drive article, entitled “Read the fine print”, the author quotes me on the importance of a full and reasonably comprehensive contract between the contracting CFO and the company that he or she is to serve on an interim or part-time basis.
One of these key points is to clearly delineate your duties, responsibilities and authority. There should also be indemnity protection for your vulnerabilities.
I was also quoted on potential special compensation opportunities from the interim, part-time or fractional position relationship. This might come from a special executive bonus tailored to the special strengths that you as the “hired gun” bring to the company.
My quoted comments also suggested creation of your own separate legal entity, typically a limited liability company (LLC), to seek out and take on part-time assignments. This might also give rise to a marketing opportunity by choosing a distinctive tradename to brand your LLC raising visibility in your field.
To see Grace Noto’s full article in CFO Drive, go to LINK:
In addition to this fine recent article, I also offer for consideration two articles I wrote on related subjects, published earlier by CEOWORLD magazine, that you also might find of interest.
1. This article of mine, published by CEOWORLD in 2017, discusses issues to consider when taking on interim or part-time C-level job opportunities:
2. This article of mine, published by CEOWORLD in 2018, discusses issues to consider when creating a consulting business including an LLC to take on interim and fractional assignments between full-time CEO, CFO or other C-level positions:
It is my hope that this recent CFO Drive article, as well as my two earlier articles published in CEOWORLD, all with links above, will be of benefit. If you or a colleague is considering taking on an interim, part-time or fractional position as CFO, CEO or other C-level position, and you have questions on contract terms, compensation, liability or other issues, please do reach out to me at email@example.com or call 617-875-8665.