Do you know the “secret” CFO playbook to unlock explosive business growth?
Running a business is no small task, and getting the financial side right can be tough. Today, we’re diving into what it takes to make your business thrive, financially, without breaking the bank. Our guide? John Hannum, founder, and CEO of PPS Solutions PC, a leader in fractional CFO services.
A lot of people ask, “What is a Fractional CFO?” Well, John Hannum explains it clearly. “A CFO is someone who brings the finance strategy to the table,” he says. In simple terms, a CFO helps make big financial decisions. But not every business can afford a full-time CFO. That’s where a fractional CFO comes in handy—they work part-time for several companies, giving each business just the right amount of support they need.
“Most businesses that are doing something exciting, something other than just repeating the numbers every year, a fractional CFO can definitely help,” says John. Even if you don’t think you need one, having a finance expert can make a world of difference. They help plan budgets, make smart investments, and get ready for big opportunities like selling the business or raising more money.
Many business owners might say, “I already have an accountant. Why would I need a CFO?” The truth is, an accountant and a CFO are not the same. An accountant keeps track of what has already happened in your financials. In contrast, a CFO looks forward and helps you plan. John says, “The CFO brings financial strategy to the table. They help you look at what your numbers mean and how you can use them to grow.”
If you’re thinking about selling your business or growing with new investments, John has some wise words. He says, “You can do it in a short period of time, as long as you can get in and clean the books up.” However, the longer you plan, the better it will be.
Having a good plan is like planting a seed. The earlier you plant it, the bigger and stronger the tree will grow. And with a fractional CFO, you get help to make your business bigger and better every year.
Mistakes to Avoid
Many businesses wait too long to fix their financial troubles. John shares, “Yeah. I wish it wasn’t true that we get called in when there’s a mess.” If you wait until things get bad before you bring in a financial expert, it might cost more in the long run.
Instead, John suggests talking to a fractional CFO early on. They can help clean up your finances before any real trouble starts. This way, if you decide to sell your business later, everything is already in great shape.
John shared some insight into why companies fail to reach their potential. One of the main reasons is that business owners don’t pay enough attention to their numbers. “Not looking at your numbers is a big mistake,” John says. “If you don’t know what’s happening financially, you can make wrong choices. But if you look at your financials regularly, you can avoid problems like cash crunches.”
Building Trust and Preparing for Big Moves
Having your financials in order builds trust with investors and buyers. If you’re selling, they need to trust your numbers and your story.
John says, “When you have an experienced CFO, they already have the concepts and they’ve been able to implement those concepts across other companies.” This experience makes sure your business is ready for anything.
Are you preparing for a liquidity event? Whether you’re raising capital, going public, or selling your business, you need to build trust with investors. John emphasizes, “The story your financial documents tell is crucial. If investors find mistakes, it breaks trust. You want to make sure your financial projections are believable and that you can back them up with a solid plan.”
Don’t wait until the last minute to bring in a Fractional CFO. John suggests, “The earlier you start working with a CFO, the more prepared you’ll be for a big event like a sale or expansion. A well-organized business is always ready to seize opportunities.”
Using AI in Financial Planning
Many of us hear about AI and think it’s going to take over everything. But John makes an important point: while AI can help with number crunching and figuring out trends, it can’t replace human experience.
As John puts it, “AI is a machine, so, it can do machine things.” It can help with reports but can’t make decisions for your business. That’s where a fractional CFO comes in. They use AI to do routine tasks faster, freeing up time to focus on big-picture strategy.
In today’s tech-savvy world, artificial intelligence (AI) is all the rage. But where does it fit into the world of finance? John believes AI can help with things like trend analysis or preparing reports. “AI is a tool, not a replacement,” says John. “It can handle data, but it won’t replace the insight and experience a human CFO brings.”
If you’re thinking about hiring a Fractional CFO, what should you look for? According to John, industry experience matters. “A CFO familiar with your industry can offer strategies specific to your business needs,” he says. Also, make sure you “know, like, and trust” the person. If you can’t imagine spending time with them on a delayed flight, they might not be the right fit for your company.
Wrapping It Up
In the world of business, every decision counts. Having a fractional CFO like John Hannum by your side means you’re not making those big decisions alone. Instead, you’re working with someone who knows the ropes and can guide you to success.
John shares a story from his private equity days where having a Fractional CFO made all the difference. “We acquired a company that had a one-day-a-week CFO. It wasn’t always convenient, but it worked because he was dedicated to understanding the company’s needs and helping it grow.”
So, could a Fractional CFO be your secret weapon? According to John Hannum, having a savvy financial expert on your team could drastically enhance your business’s success. If you’re serious about growing your company and preparing for future opportunities, now might be the time to consider bringing in a Fractional CFO. As John says, “Every business doing something exciting should consider how a CFO can help.”
John’s advice is clear: don’t wait for things to go south before calling in help. And remember, financial planning isn’t just about making money—it’s about ensuring your business stays in the race for the long haul. With the right guidance, your business can grow and thrive no matter what challenges come your way.
_**
_What if 90 days was all it took to radically transform your business’s profitability? Discover Deep Wealth Mastery, the only system derived from a 9-figure deal. Ready to welcome your financial freedom? Start your transformative journey today. _Click here to start your journey**
Today, Feldberg's passion is helping you extract your deep wealth. The 90-day Deep Wealth Mastery program helps create a solid foundation for three areas: increasing profits to enterprise value and optimizing post-exit life. Deep Wealth Mastery offers strategies and insights drawn from Feldberg's rich experience. The strategies from the trenches get results. Jeffrey's vision is to increase the social fabric of society one entrepreneur at a time.
Learn more through https://iapdw.com/prosper
