154. 9 Years Later: Fractional CFO Advice I’d Give on Day 1
Mar 4, 2025
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Explore the valuable lessons from nearly a decade of running a fractional CFO firm. The importance of targeting larger clients and managing expectations is highlighted for greater profitability. Discover strategies for creating scalable business models and tools to enhance productivity. Simplifying processes and niching down are essential for growth, along with the need to unlearn outdated habits. Tune in for actionable insights that can transform your approach to financial consulting!
Building a sales team is essential for fractional CFO firms to ensure sustained growth and a healthy lead pipeline.
Focusing on larger clients helps capitalize on significant challenges, improving profitability and aligning with broader business outcomes.
Deep dives
The Importance of Selling Beyond One's Self
A significant insight in successfully running a fractional CFO firm is the necessity of building a sales team rather than relying solely on individual sales skills. When one person is the only seller, the business is vulnerable and growth is hindered. Effective prospecting should be prioritized, as neglecting sales efforts can lead to a dry pipeline and stagnation. Hiring support in sales, even on a part-time basis, is crucial to developing a sustainable business model and ensuring a constant influx of new leads.
Focusing on Bigger Clients and Outcomes
Working with larger clients who face significant challenges is more beneficial than addressing the minor issues of smaller, financially strained clients. The latter often bring unnecessary drama and unrealistic expectations, making collaboration difficult. In contrast, larger clients typically prioritize the results they achieve rather than the hours spent on their accounts, which directly influences profits. This shift in mindset encourages a focus on delivering impactful outcomes that align with clients’ broader business goals.
Simplification and Mental Bandwidth
The podcast emphasizes that while time is valuable, mental bandwidth is often an even more critical resource in running a business. Protecting mental space allows for strategic thinking and addressing pressing challenges rather than getting bogged down by minor, immediate tasks. Regular practices such as journaling can help clear one's mind, thereby enhancing focus on decisions that have significant financial implications. Additionally, simplifying operations and resisting unnecessary complexity can lead to more manageable business growth and efficiency.
If you’re new to the podcast, my name is Michael King. I’ve been building and managing my Fractional CFO firm, KFE Solutions, since 2016. I’ve also coached hundreds of other Fractional CFO firm owners to help them start and scale their firms as well.
Today, I share the lessons I’ve learned over the past 8+ years to help others build their firms and have an outsized impact on their clients.