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Why New Businesses Need a Startup CFO


What does it take to start a company? One of the most important tasks for a start-up business owner is to make sure to have a solid team of experts to help guide the new venture. There are many different roles to fill, and an entrepreneur can sometimes get caught trying to fill too many. A Startup CFO, offering high level financial talent on a part-time basis, can fill and supervise many critical roles as the company grows.

What is a Startup CFO?

Startup companies need a chief financial officer to safeguard cash flow and build a dynamic business plan. CFOs handle the important technical and strategic planning and decision-making for a company. However, many start-ups don’t always have enough work and or resources to hire a full-time salaried CFO.

Rather than bringing in a typical CFO, startups can benefit from working with a Startup CFO (or Fractional CFO). With a Startup CFO, new companies get the benefit of skilled and experienced financial leadership without the cost of a full-time employee.  A Virtual CFO typically works with several different companies on a part-time or project basis.

For a new company, a Startup CFO provides powerful leadership and creative problem-solving formed over years of experience. New businesses benefit from an executive that is familiar with the process and expectations of the industry.

Why Do You Need a Startup CFO?

Growing companies are especially vulnerable in their first few years of business. Cash flow management is crucial. An estimated 82% of business failures are caused by poor cash flow management. Without a CFO on board from the start, the founding entrepreneur will often attempt, but fail, to adequately manage cash flow. Startup CFOs can handle this and so much more!

A Startup CFO has the vision and experience to keep the company grounded. They are highly skilled at communication and leadership and can work with the sales team build the company to match its financial vision.  They offer a wide array of high-level talent on an “as needed” basis. Startup businesses decide just how much (or how little) their part-time CFO is needed.

What Can a Startup CFO Help Your Company Accomplish?

Launching a new company can be overwhelming. Startup CFOs have been through this process with many businesses and can help keep the company on-task and focused on the big picture.

A Start-up CFO will be able to offer crucial guidance for a new company’s financial start, including:

  • Predicting cash flow issues
  • Guiding funding or new investors
  • Solving budgeting dilemmas
  • Developing financial forecasts
  • Analyzing the industry trends
  • Researching customer segments and markets
  • Helping with time management
  • Establishing systems and protocol
  • Creating a long-term financial strategy
  • Navigating compliance issues and regulations

What Are The Benefits of a Startup CFO?

A CFO will help a company get off the ground with sustainable growth. They are the C-suite leaders responsible for ensuring the company stays on track when everything is new and untested. Not only that, but a Startup CFO can prepare the company for the next stage—whatever that may be.

Companies will eventually move to a point where they will mature, go public, acquire another company or sell to a larger entity. CFOs help prepare the company for any eventuality by having a strong grasp on finances, funding, budgeting and vision.

However, many start-ups are cash-strapped and aren’t sure they have enough work for a CFO. No one wants to hire a CFO, only to have them answering the phones or doing data entry work to fill up their days. A Startup CFO offers the services of a high-level company leader on an as-needed basis. Further, an experienced Startup CFO will be able to hit the ground running and provide expert leadership, cash management, and strategic planning.

How to Hire a CFO for Your New Business

Could your company use a Startup CFO? The A Team’s Fractional CFOs are experienced in helping companies like yours. Call 646-849-4267 or contact us now to find out how our Fractional CFOs can help your company grow and thrive.

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