Here is what I do as Fractional CFO:
Strategy:
- Work with the Founder / CEO on setting up a general strategy for the company (growth strategy / path to profitability/ exit)
- Work with Head of Sales on the sales strategy (retailers / channels) to optimize for sustainable growth.
- Work with Operations on profitability improvement (SKU rationalization / pricing / pack size).
- Work with Head of Sales on the sales strategy (retailers / channels) to optimize for sustainable growth.
- Work with Operations on profitability improvement (SKU rationalization / pricing / pack size).
Financial Management:
- Review and optimize shared files, workflow and SOPs around finance, accounting, operations, sales to add efficiencies
- Build bottoms up three-statement financial model.
- 13-weeks cash flow forecast. I recommend doing this weekly
- Manage accounting team (internal or external) to make sure that accounting is done timely and correctly.
I do a thorough month end review of the books, investigate irregularities, bring it up to founder / CEO attention if needed.
- Profitability analysis (channel / customer / retailer )
- Month-end executive review with founder / CEO. Overview of the results; actual vs budget, wins / concerns / KPIs review
- Trade Spend Management
set up a system that works best for the team to ensure proper deduction management; work with Sales to analyze promos against performance, to avoid costly promos that don’t work.
- Build bottoms up three-statement financial model.
- 13-weeks cash flow forecast. I recommend doing this weekly
- Manage accounting team (internal or external) to make sure that accounting is done timely and correctly.
I do a thorough month end review of the books, investigate irregularities, bring it up to founder / CEO attention if needed.
- Profitability analysis (channel / customer / retailer )
- Month-end executive review with founder / CEO. Overview of the results; actual vs budget, wins / concerns / KPIs review
- Trade Spend Management
set up a system that works best for the team to ensure proper deduction management; work with Sales to analyze promos against performance, to avoid costly promos that don’t work.
Working Capital Management:
- Evaluate the need and advise on the best lenders for the situation
- Evaluate offers/term sheets to select the best WC partner
- Facilitate introductions and support through negotiations and DD
- Set up internal SOPs for accounting to support the facility on-going
- Evaluate offers/term sheets to select the best WC partner
- Facilitate introductions and support through negotiations and DD
- Set up internal SOPs for accounting to support the facility on-going
Capital Raise Support:
- Advise on size / form of the raise (note vs price)
- Built a cap table pro forma
- Value proposition / Deck / Pitch
- In-depth investor analyses in preparation for the raise
- Data room set up / management (if needed)
- Investor outreach / communication
- Term sheet review / negotiation
- Built a cap table pro forma
- Value proposition / Deck / Pitch
- In-depth investor analyses in preparation for the raise
- Data room set up / management (if needed)
- Investor outreach / communication
- Term sheet review / negotiation
Most of the time I engage with the brand on a retainer basis and become a part of the internal team. The hours and level of involvement vary, depending on the needs.
Occasionally I engage in "on-demand" short projects to assist with specific task / project.