An experienced CFO is critical for ensuring compliance with the many rules, laws, and regulations that govern all aspects of legal cannabis.
As the legal cannabis industry continues to grow, so does the demand for professional business-to-business services such as finding an experienced and passionate chief financial officer or a bookkeeper that understands your unique challenges. And in the cannabis space, these services are essential for success.
But the option to hire a full-time business advisor or chief of financial operations isn’t always available. Whether it’s because of budgetary limitations or it’s too early to justify bringing full-time financial professionals into your business, a cannabis company doesn’t always need a full-time CFO.
Fractional CFO for Your Cannabusiness
So, how can cannabis operations obtain the business accounting, strategic planning, and long-term CFO partner they need?
Northstar’s Fractional CFO Service for Cannabis
Keep reading to learn more about what we do as fractional CFOs and how we’re accelerating growth for business operators in the cannabis space.
Looking for an extraordinary outsourced CFO firm? Northstar has the financial professionals you need.
Contact us now to learn how our fractional cannabis CFO services save your business money while we scale your operation with services specifically for the cannabis space.
Northstar’s Fractional CFO Model
You don’t need to hire a full-time bookkeeper or CFO. In-house CFOs demand high salaries estimated up to $578,054 annually with benefits. And let’s not forget the added cost for overtime.
This is just one of the benefits of hiring a fractional CFO for cannabis.
A fractional Chief Financial Officer will handle your operation’s needs at a fraction of the price. Rather than paying for a bunch of services you don’t need, you get what you need when you need it, with expert precision from Northstar.
You don’t have to spend hours looking for finance professionals. The interview process is long and challenging; in some cases, you might have to try multiple candidates to find the right fit.
So, should you outsource your CFO service? A fractional option is usually better and here’s why.
With fractional CFOs, you can try before you buy. Rather than going through the entire hiring process, you’ll be able to make a quick hire for the services you need.
If it doesn’t work out, you don’t have to start that long process all over again. Simply move on to the next fractional candidate until you find the right fit.
Scale Up or Down Quickly
It’s easy and affordable to scale your operation with our fractional CFO model. This is the entry point cannabis businesses need to begin scaling.
Some seasons are busy. This is when you’ll want to scale fast with more services.
However, there will be times you’ll need to scale down. For example, your business might have other financial demands it needs to fulfill. By scaling back these services, you can allocate those funds appropriately to support your operation.
Immediacy to Cut Costs
The time spent hiring a new team member costs your business money. With this in mind, the immediate placement we provide saves time and money by limiting the time you devote to hiring.
Your business’s financial needs are critical; you need immediate assistance with business accounting, raising capital, and more.
Through Northstar, you fulfill immediate necessities. For example, if your current CFO leaves suddenly, you can replace them fast and continue operations without delays.
New Perspectives for Your Cannacompany
It’s always ideal to have fresh perspectives for your business. And the experience we have in cannabis will offer ideas that your team might not consider.
Goals and plans can limit the way your team thinks. But someone who isn’t involved in the daily operations will offer a viewpoint only achievable from the outside looking in.
For difficult decisions, this is valuable. Our impartial advice will help you navigate challenges that hinder success, allowing you to scale more easily.
More Expertise & More Knowledge
Expertise and knowledge go a long way in the cannabis space. This is especially the case for operations that don’t want to pay the hefty price tag of a full-time team.
You don’t just get one person working on your business’s success. Instead, you have our entire team with experience operating in the cannabis space.
Fractional CFO Services for this Elevated Space
The right fractional CFO service can provide the niche-specific business expertise your cannabis company needs to grow while keeping your access to these services within financial reality.
A fractional CFO service is just that: a handful of talented professionals who act as “sub-CFOs” for small businesses and startups. They share responsibilities with an outsourced general accounting team, bookkeepers, and other financial experts all while working under one cohesive fractional business consulting service.
Our fractional CFO services are the perfect solution for cannabis companies that do not need a full-time finance advisor or team to run operations. As your fractional CFO partners, our professionals offer experience in assessing business plans, managing virtual teams, and creating actionable strategies for growth.
Fractional CFO vs. Full-Time CFO Services
While a fractional CFO and a full-time CFO focus on accelerating growth, the fractional CFO model comes with an assortment of benefits.
Full-Time vs. Fractional CFO Cost
Traditional CFO services are more costly on a month-to-month basis when compared to our fractional CFOs. This is because they provide CFO services, even when they might not be needed.
The fractional CFO model allows cannabis operations to overcome financial challenges as they arise. Rather than paying for a full-time CFO, you receive cost savings because you use the services as needed.
Not all cannabis businesses are ready to bring in a full-time team. Thus, hiring one in-house tends to be more expensive than most fractional CFOs.
However, fractional CFOs are ideal for many cannabis operations because these services give the business owner the capacity to scale up or down as needed. This freedom allows cannabusinesses the ability to overcome financial challenges like raising capital and cash management when needed. But it also helps with optimizing resources.
For example, your operation might need assistance from finance experts during the busier time of year. But when your growing business is having cash flow issues, you have the option to scale back the finance and accounting services for the time being.
Fractional CFO FAQ
What is a fractional CFO?
A fractional CFO is a finance professional who partners with small businesses and large-scale operations to offer financial services. In the same manner as a full-time team, fractional CFOs provide business owners with accounting expertise and financial guidance.
But because these professionals are only available part-time, they help you pursue growth strategies when your needs arise.
Why should I choose a fractional CFO over a full-time finance team?
By hiring Northstar as your fractional CFO partner, you get access to experienced accounting and financial professionals at a fraction of the cost. But what’s more, the connections we have acquired by working with the cannabis sector are conducive to scaling your operations.
Rather than hiring a freelancer to handle your accounting, you have a team dedicated to your success. Our industry connections make it easy to obtain the financing and other services your growing business needs to scale.
Let’s say your hope is to build your company to the point you can offer stock options. Or perhaps you need help creating and implementing a financial strategy that will work for your operation.
Strategic planning is our bread and butter, and since we’re knowledgeable about cannabis nuances, we can act as your trusted advisor every step of the way!
How much does a fractional CFO make?
You’re probably wondering how much a fractional CFO earns. This varies from industry to industry, as well as how much time they dedicate to each company.
The beauty of the fractional CFO model is that the individual can also work with other businesses. This means that rather than being limited to one company, a fractional CFO can service other businesses on a part-time basis.
Many fractional CFOs will work on a project basis. However, at Northstar, we want to be your long-term CFO partner instead. This means we get to know your company, the people that make it great, and your plans.
Whether you hope to make an exit strategy a few years down the road or want to build something sustainable, we’re here to help with expert accounting and other financial services on a fractional basis. Our mission is to set your company for scaling its operations as your fractional CFO partners.
Why is a CFO a fractional?
So, why is a CFO a fractional CFO as opposed to a full-time accounting and finance expert? Some choose to become freelance CFOs for additional freedom. However, at Northstar, we believe that a fractional CFO stands to help most companies operating in cannabis with the specific challenges this industry presents.
Top companies operating in the cannabis space are overcoming obstacles daily. But what about the small business that’s just starting out? Or the small companies that have highs and lows throughout the year?
This is why we provide high-level fractional CFO services as opposed to full-time or interim CFO services.
Cash management is one of the most significant problems a cannabis business will face. But these operations still need a trusted advisor to lead board meetings, analyze current finances, and ensure exit strategies prioritized are on track in accordance with the company’s financial statements.
We want to make sure every cannabis business has access to a trusted advisor when a company needs a high-end CFO. General accounting is important, too. However, without specialization in the cannabis space, hundreds of millions of dollars can be lost as these organizations implement without the right guidance.
Fractional CFO Financial Strategy for Cannabis
The fractional CFOs at Northstar work exclusively with businesses operating in cannabis. We understand how financial forecasts and financial strategy should work for this space.
Financial modeling for the cannabis sector must consider the specific financial challenges of this industry. This, of course, includes all compliance-related issues that can come up.
Optimizing cash flow is especially important for this space. And for large-scale organizations managing multiple companies in this industry, operational strategies, maximizing shareholder value, and planning for exit strategies are all important considerations for maximizing profitability.
For a privately held company with diverse management projects, private equity funding could be essential to financing real estate and other large purchases. But other diverse management projects within the company might need accounting and other financial services, too.
Northstar’s Fractional CFO Service
As your fractional CFO, we can serve as your interim CFO between hires. But we want to become your strategic planning partners long-term!
As your fractional CFO partners, your success is our priority. Rather than bringing in a full-time Chief Financial Officer, you’ll have our professional team focused on accelerating growth with a proper cannabis-specific financial strategy.
With Northstar, you never have to worry about compliance-related risks. We remain vigilant in our data acquisition, ensuring we always have the right answer at the right time.
Looking for a part-time CFO to help your cannabusiness navigate this space? Northstar is here to guide you!
Contact us now to find out how our services will help your cannabis operation scale in this budding space.