How Can the Fractional Model Benefit Your Business?

Many small businesses, thinking about their future growth, have considered hiring a fractional team to come support their everyday business functions as an option. Fractional models offer many benefits to business owners that choose to go that route. These models can allow your company to get expert assistance at a lower price point. Outsourced services are meant to assist and support your company as you grow and expand your business. How can your small to medium-sized business benefit from fractional services? Keep reading to find out!

Key Takeaways

For beginning stage companies, a fractional model can help you with fundraising efforts through accurate reporting and realistic projections. They can also help with using existing contacts to bring in the best advisors early in your company’s lifecycle, consult on corporate governance and create advisory committees and board.
For existing or more established companies, a fractional model can benefit you by maximizing cash flow forecasting in both the short and long term. They can organize your management team, set company growth initiatives and research & implement financial benchmarks. There is also the added benefits of capital planning and crisis management & exploration of new opportunities.

Beginning Stage Companies

Companies that are in the beginning stages of growth receive quite a few advantages to utilizing the fractional model. Fractional accounting services offer three main benefits for beginning stage companies:

A fractional team helps new companies prepare for fundraising efforts, with accurate reporting and realistic projections. Having a trusted, outsourced accounting department will give your company more credibility as you look for funding to expand your business.
Fractional services also offer a large network of existing contacts that can also come into your company and advise your business through the growth stages.
Outsourced departments can consult on corporate governance and create advisory boards to lead your company forward.

Established Companies

For businesses that have been through their growth stages, have become a bit more established and are looking to hire a fractional team, there are still quite a few advantages as well. For existing companies the benefits are:

A fractional team can help an existing company maximize cash flow forecasting, both short term and long term.
They can also help organize your management team and set initiatives that assist in your companies growth.
These teams also have the research done to implement financial benchmarks that help your company succeed.
They assist with capital planning, as well as crisis management programs.
A fractional team can help you explore new opportunities with educated risk-taking and a proper understanding of your company’s financial information.

Conclusion

At TGG, we offer fractional financial services to our clients. Our teams of four assist your company in analyzing and understanding your financial situation. We use this information to help your company grow and succeed in the future. For more information on what we offer, contact us today!

Sources:

This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.

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