A Fractional CFO Can Help With a New Product Vertical
Why a Fractional CFO is a secret weapon for success
Entering a new product or service vertical – or even a new geographic market – is a thrilling prospect for a growing company. However, it often comes with a great deal of risk. Your odds of success are significantly higher when you enlist the support of a Fractional CFO.
Fractional CFOs Can Guide Your Experience in the New Vertical
As you enter a new market, your company may have little or no experience in the space. The skill and expertise of a Fractional CFO will be key to help develop and guide the vision. At The A Team, our CFO’s have many years of experience in a wide variety of market verticals, including:
- Real Estate
- Health Care
- Not For Profit
- Professional Services
- Online Retail
Our CFO professionals are able to pull from their vast toolbox of experience to tailor a roadmap for success based on their own case studies, relationships, and triumphs.
Custom Business Planning
One of the greatest benefits of working with a Fractional CFO is their ability to help you develop a custom business plan. Entering a new vertical is much like starting a business all over again. Study after study has shown that businesses that launch with a formal business plan are more likely to succeed, and to grow faster, than those who don’t.
Fractional CFOs offer Competitive Landscape Analysis
While an idea may sound good in theory, hidden or unanticipated factors can lead to disaster. That’s why a competitive analysis is key. A Fractional CFO can help you weigh the risk/reward benefit by delivering a high-level report on the climate of the new product or service vertical your business is considering so that you have an edge before taking the leap.
Another benefit of working with a Fractional CFO is contingency planning. Because of their financial savvy and industry experience, they can anticipate pitfalls and handle unforeseen challenges. With contingency plans in place and a financial expert at the helm, you are protected against the inevitable curveballs.
Fractional CFOs know how to best use available resources. This is a critical component as your business expands. They can assess the best funding sources to support your growth plan without negatively impacting your core business model. This level of astute resource management helps keep your business stable as you expand.
Manage Cost of Implementation
At the outset, a Fractional CFO will determine the initial and ongoing investment necessary for the planned expansion. While many entrepreneurs consider basic sales potential, a CFO takes a forensic look into the true cost of goods sold that can fly under the radar.
Manage Ongoing Costs
After the initial break into the market, the Fractional CFO will be in charge of ongoing management, including cash flow management, supply chain management analysis, payment terms optimization, financial systems improvement, forecasting, budgeting, and more.
Fractional CFOs Are A Trusted Partner
While finance is their strong suit, a Fractional CFO is really a critical member of the C-suite of a company, lending support to both the owner and the team members. They are in charge of developing a comprehensive roadmap to reach the goals of the business. They translate the vision of the owner to the team and motivate departments to meet their defined goals. For an owner, this is a critical resource that helps turn vision into reality.
For Mergers & Acquisitions
Expanding into new markets doesn’t always involve bootstrapping. If a merger or acquisition is involved, you want a financial pro in your corner. Fractional CFOs know their way around a boardroom and can manage high-level meetings, negotiations, relationships, transactions, and more.
If your business is considering expansion into a new product or service vertical, or a new market, or is considering a merger or acquisition, you need the expertise of a Fractional CFO. The A-Team, with over 20 years of experience in providing outsourced accounting services, has professionals available to assist your growing business. Contact us or Call us at 646-849-4267 to see how a Fractional CFO can help your business grow and thrive.