I think this post is bait, but hiring executive contractors is essentially a terrible idea for startups.
Your 'fractional cxo' will cost as much as a full time junior, work very few hours, not care about your equity, and be mostly unconcerned whether you succeed or fail.
Get an employee who's dedicated to your mission and wants to prove themselves, or learn to do the job yourself until you can justify the hire.
I dont know about startup culture or silicon Valley, but i do know a fractional cfo who is more motivated and dedicated than most full time associates.
I'm not convinced fractionalness is a bad thing; i would think it adds tight feedback loop for performance that executives sorely lack.
There are some horror stories with Fractional CFOs. That was my intital fear. But, a Fractional CFO who own a number can give a boost to a sub $5 million company. It goes bookkeeper, tax accountant, Fractional CFO as far as when to hire.
I’d love to hear an explanation of what ‘fractional CFO’ means in this specific circumstance; please tell us more?
(Non-OP folks, I’m familiar in a general sense but I’d rather not assume the details, so this request is for OP alone to clarify their question with additional details.)
A Fractional CFO is a part time executive that is paid on a monthly basis. Between $5,000 and $10,000 in general. They use the accounting numbers to provide forward looking guidance on Cash flow, burn rate, etc. Furthermore, they help with funding, oversee accounting, and teach founders about the financial side of their business.
Eventually helping to bring on a full time CFO when it is needed.
Most of that job description is just “retain a CPA” and they’re already fractional workers across lots of companies. One point is unclear, though: what does “help with funding” involve?
Your 'fractional cxo' will cost as much as a full time junior, work very few hours, not care about your equity, and be mostly unconcerned whether you succeed or fail.
Get an employee who's dedicated to your mission and wants to prove themselves, or learn to do the job yourself until you can justify the hire.
I dont know about startup culture or silicon Valley, but i do know a fractional cfo who is more motivated and dedicated than most full time associates.
I'm not convinced fractionalness is a bad thing; i would think it adds tight feedback loop for performance that executives sorely lack.
(Non-OP folks, I’m familiar in a general sense but I’d rather not assume the details, so this request is for OP alone to clarify their question with additional details.)
Eventually helping to bring on a full time CFO when it is needed.
(and your experience will all depend upon the contractor)
sort of like tahoe timeshares near heavenly for periods when there is no snow.