CEO and CFO to run businesses

June 09, 2024
by a searcher from Louisiana State University - E. J. Ourso College of Business in Phoenix, AZ, USA
How do you guys typically go about recruiting CEO and CFOs to run the businesses your small businesses when you are strapped for cash and may not be able to pay them the market salary until a few acquisitions. In addition to this who would be the avatar for the type of person that would be take a deal like that. What is the average salary you offer a fractional CFO/CEO vs full time? What is the vesting schedule that you offer for equity?
Thanks
from University of Michigan in Bay City, MI, USA
Disagree with the idea that you can run the business with a "fractional" CEO and CFO. These people aren't part-time employees, they're re-branded consultants. Fine and dandy if you need someone with that expertise to consult, but don't think of them as part-time employees of your business in any way.
IMO, the "fractional" branding muddies the water more than anything else.
edited to add: Most small businesses (<$10MM revenue) don't need a true CFO. There simply isn't enough financial strategy to keep someone with that kind of expertise busy, even part time. Good bookkeeping, a 13-week cash flow model, and a solid CPA will typically be all that's needed.
from University of Southern California in Mid-Atlantic, USA
I know we are all enamored with the idea of this being a HoldCo situation, but I would imagine that at least the first year or two will be a YouCo situation. Definitely find a business you will be good at running and enjoy the learning process. - JC .