#459 John Hannum - Fractional CFOs

The Next 100 Days Podcast

John Hannum provides an overview of his fractional CFOs business. His company takes experienced CFOs and "fractionalises" them to serve multiple clients.

Summary of the Podcast

Fractional CFO services overview

John Hannum provides an overview of his fractional CFO services, explaining that his company takes experienced CFOs and "fractionalizes" them to serve multiple clients. The key benefits are access to high-level financial expertise without the cost of a full-time CFO, as well as the ability to leverage a CFO's industry-specific knowledge.

Hiring and managing fractional CFOs

John discusses the process of hiring and managing fractional CFOs, emphasizing the importance of finding the right personality fit and industry expertise. He also outlines how he structures the client engagement, with a focus on regular touchpoints and clear communication boundaries to ensure the CFO's time is used efficiently.

The role of AI in finance

The group explores the impact of AI on the finance function, acknowledging that AI will automate many repetitive tasks but arguing that the strategic, advisory role of the CFO will remain valuable. They discuss how AI can enhance financial analysis and decision-making, but emphasize the continued need for human leadership and judgment.

The fractional CFO market opportunity

John provides data on the size of the fractional CFO market, noting that there are currently only around 11,000 fractional CFOs serving 33 million small and medium-sized businesses in the US. He sees this as a significant growth opportunity, especially as more companies recognize the value of accessing high-level financial expertise on a part-time basis.

Recap and next steps

The group concludes the discussion, summarising the key insights around the evolving role of the CFO, the potential impact of AI, and the sizable market opportunity for fractional CFO services.

The Next 100 Days Podcast Co-Hosts

Graham Arrowsmith

Graham founded Finely Fettled ten years ago to help business owners and marketers market to affluent and high-net-worth customers. Graham founder of MicroYES, a Partner for MeclabsAI, which combines the world's biggest source of 10,000 marketing experiments with AI. Find Graham on LinkedIn.

Kevin Appleby

Kevin specialises in finance transformation and implementing business change. He's the COO of GrowCFO, which provides both community and CPD-accredited training designed to grow the next generation of finance leaders. You can find Kevin on LinkedIn and at kevinappleby.com