Alpha Squared offers a number of CFO services designed to be custom tailored to the needs of each client. We don’t believe in a “one size fits all” model. As we begin the “Discovery” part of a new client relationship, we assess what areas are of the highest concern with the most impact and how we can prioritize a set of solutions to help provide the client with the best value and most sustainable results over time.
Some examples of our services are included in the chart below.
Overall, a good fractional CFO should be seen as a strategic partner to the executive leadership team and the Board.
Several examples of the CFO value proposition are highlighted. Not all of these skills may be needed at once but a powerful fractional CFO will access their swiss army knife toolkit to address any financial challenges in order to drive value and progress.
A Few Benefits of Investing in an Alpha Squared Fractional CFO
- Strengthen company’s financial capabilities at fraction of the cost of a full time CFO
- Become much more “forward looking” and improve the ability to make better business decisions using data and analytical insights
- Leverage years of financial experience with different companies and best practices
- Proactively structure the company for controlled growth
- Evaluate growth scenarios with data based decisioning
- “Peace of mind” for CEO
- Allow management team to focus on their areas of expertise
- “GoTo” person for all things financial
An Alpha Squared Fractional CFO can help answer critical questions
- Where do I make/lose $ ? Which clients? Which product lines?
- What does my cash / liquidity runway look like and what should I do?
- What are the risks that I am not seeing?
- Are we “on target”? What should we focus on to improve?
- What is the estimated value of the company now and in the future?
- How much $ can I take out comfortably?
- What investments should I make in people and resources and how to think about ROI?
- How and when should I raise capital?
- How can I most effectively communicate financials with investors or my Board?
Examples of a Alpha Squared Fractional CFO Delivering Value
- Built a new business model for a music school to evaluate options during Covid leading to a strategic on-line pivot and improved profitability
- Developed a multi-year, complex, financial business plan and KPI’s for a health-care tech company – presented to board and investors resulting in a successful capital raise
- Designed and implemented an automated tool for key metrics – allowing business owners to get deeper insights into performance and identify opportunities
- Transformed a standard P&L for a B2C business into a product profitability indicator – allowing the business owner to invest in products with a clear understanding of margin impacts
- Analyzed workforce costs, cash flow and related revenues for a health care provider to empower owner to confidently invest in new roles
- Assessed financial capabilities for a digital marketing company enabling owner to make data driven decisions on where to invest resources
Path to Success in a Typical CFO Advisory Engagement
- Initial discussions between business owner and CFO Advisor to determine fit
- Discovery – Financial capabilities review with assessment and recommendations
- Detailed Analysis of balance sheet, income statement & cash flow
- Monthly forward looking financial review with business owner & team
- Detailed budget build – typically 3 year plan with analytics / scenarios
- Quarterly Re-Forecast
- KPI’s / Metrics development & automation
- Resource planning with tracking capability
- Product Profitability Analysis
- Sales Pipeline Revenue Projections / Tracking