These days lots of small and mid-sized businesses along with startups are bringing in fractional CFOs to get top-notch financial advice without the heavy cost of hiring a full-time executive. A fractional CFO steps in with tailored financial strategies covering everything from planning and risk management to business growth.
Now the big question is how do you make sure you’re squeezing every bit of value from their expertise. Simple Ask the right questions. Good solid questions can open doors to insights that boost efficiency streamline financial operations and bring in the highest return on your investment.
Here are the top 5 questions you should be asking your fractional CFO
- How can you help us improve cash flow management
- What financial KPIs should we be tracking
- How can we optimize our pricing and profit margins
- What are the biggest financial risks we face
- How can you help us secure funding or improve investor relations
1 How Can You Help Us Improve Cash Flow Management
Cash flow is everything If money isn’t moving right your business struggles to keep up with expenses grab new opportunities or handle surprises.
A fractional CFO digs into your financial movement looking at how money comes in and goes out. They check payment cycles expenses revenue sources and find ways to plug leaks and keep things flowing. This could mean improving how fast you get paid tweaking payment terms or managing working capital better so there’s always enough cash on hand.
2 What Financial KPIs Should We Be Tracking
Numbers tell a story and the right numbers help you make smart decisions. A fractional CFO helps pick the financial indicators that matter most to your industry so you stay ahead.
Depending on your business these could be
- Retail Sales per square foot inventory turnover gross margin
- Manufacturing Production volume cost per unit equipment efficiency
- SaaS Monthly recurring revenue churn rate customer lifetime value
Tracking the right data makes sure your financial plan matches your business goals while keeping up with market changes.
3 How Can We Optimize Our Pricing And Profit Margins
Pricing isn’t just about staying competitive it directly shapes how much money your business keeps. If your pricing model is off you could be leaving money on the table or worse scaring off customers.
A fractional CFO runs a deep check on cost structures market trends and pricing strategies. They focus on
- Cost Analysis Looking at production costs supplier agreements and operational expenses to cut waste
- Market Trends Studying competitor pricing and shifts in customer demand
- Pricing Models Finding the best strategy for pulling in new customers keeping them happy and maximizing profits
4 What Are The Biggest Financial Risks We Face
Every business has risks Whether it’s market swings new regulations or internal inefficiencies these can all hit your bottom line hard if you’re not prepared.
A fractional CFO looks ahead spotting weak spots before they become big problems. They create strategies to minimize risks like strengthening financial controls diversifying income sources and setting up backup plans. This way your business stays strong no matter what happens.
5 How Can You Help Us Secure Funding Or Improve Investor Relations
If growth is the goal then funding and investor trust are must-haves. A fractional CFO helps shape a strategy to attract funding while keeping investors confident in your business.
They focus on
- Financial Reports & Forecasts Creating clear reports and projections that build investor trust
- Investor Presentations Showcasing business strengths market potential and competitive advantages
- Funding Strategy Finding the best financing options whether it’s venture capital loans or strategic partnerships
Make The Most Of Your Financial Strategy
Bringing in a fractional CFO can be a game-changer if you use their skills the right way. Asking these key questions helps unlock insights that strengthen your business operations boost efficiency and make sure every dollar works harder for you.
If you’re looking to sharpen your financial strategy and build long-term success Magnified Consulting is ready to help. Reach out today and let’s take your business to the next level.
