As more businesses look for flexible, high-impact financial leadership, the demand for fractional CFOs is skyrocketing. But what does it really take to succeed in this space? Joe Newbold, founder of Control Room Finance, has worked with over 90 startups and scaleups, helping them navigate financial strategy, fundraising, and operational efficiencies during his fractional career to date.
In this deep dive, Joe shares his personal journey, the challenges of transitioning to fractional work, and key lessons for finance professionals considering the leap. From navigating client churn to positioning yourself effectively, this article is packed with real-world insights on what it takes to thrive as a fractional CFO.
From in-house to fractional
Joeâs career didnât begin in the fractional space. Early on, he worked with startups before moving into large corporate finance roles in FTSE 100 companies and financial services. However, his transition into fractional work happened almost by accident.
âI saw a post on LinkedIn about the evolving role of Financial Controllers. I commented, had a conversation with who posted it, and before I knew it, I was working one day a week for a startup as a Finance Manager. That quickly turned into more, and thanks to some good fortune in 2019 and a few very good people I managed to start a portfolio career.â
At first, Joe took on short-term contracts, helping startups with financial modeling, system implementations, and more.. Some engagements lasted only a few weeks, while others extended to over two years. He quickly realised that the fractional CFO role is about adaptabilityâone day, he was implementing finance systems, and the next, he was guiding a company through a Series A raise.
Joeâs experience highlights a key shift in the finance industry: companies increasingly need CFO expertise but donât always require (or canât afford) a full-time hire. This demand has fueled the rise of the fractional CFO model, allowing finance professionals to work across multiple businesses, bringing best practices and strategic insights along the way.
The two types of fractional CFOs
Joe highlights that not all fractional CFOs operate the same way. In fact, he categorises them into two distinct types:
1. The Hard-Hitting CFO:
"There's a type where clients need immediate outcomes or a project based approach, people fix stuff fast, they get it done and they deliver. On time, on budget, no questions.â
This type of CFO is execution-focusedâdriving results, solving problems, and delivering clearly defined outputs. They are brought in to get things done quickly and efficiently, whether itâs system implementations, financial modeling, or process improvements.
2. The Hand-Holding CFO:
"There are some founders who want the security of stability and longevity. All CFOs provide these two factors, but some give a softer approach that gives clients confidence and a calmer mindset"
This type of CFO provides comfort and reassurance to clients. They offer strategic advice like any other CFO, but their value comes from being a steady presence, giving founders confidence and guidance beyond just deliverables. Theyâve likely been in the industry for a while and often have a different approach to how they conduct themselves.
Understanding which type of CFO you are (or want to be) is crucial for positioning yourself in the fractional space. Some businesses need a hands-on finance leader who can get things done, while others prefer a calmer voice in the room to give reassurance.
Itâs important to understand that one business can require both of the above at different times in its evolution and in some cases at the same time, if there are distinct requirements across the business.
The challenges of going fractional
While the flexibility of being a fractional CFO is appealing, Joe is quick to point out the challenges of making the transition:
1. The Always-On mentality
âIf you think fractional CFO work is a way to get more work-life balance, youâre in for a surprise. Startups donât sleep. If a founder is dealing with a cash flow crisis on a Wednesday, but youâre scheduled to work for them on Thursday, do you ignore them? If youâre serious about this career, you need to be always-on.â
Unlike a traditional 9-to-5 job, fractional CFOs often find themselves troubleshooting urgent issues at unexpected times. Founders rely on them not just for financial expertise but also for guidance and reassurance often requiring switching between 3-4 different clients some days.
This isnât to say that you canât control what work you do and who for but in Joeâs opinion this is not a lifestyle or âsemi-retirementâ role given the importance of it to the startups.
2. Finding the right clients
Getting started as a fractional CFO isnât as simple as securing a couple of clients. Joe emphasises the importance of selecting the right clients:
âIf you donât believe in the founder or the product, youâre not going to be engaged. And if you take on a low-paying client, youâll dislike it when you have to prioritise them over others.â
He advises finance professionals to maintain pricing parity across clients, ensuring they arenât underpricing themselves and devaluing their work.
3. Financial stability & risk management
Fractional work is inherently unstableâclients can disappear with little notice. Joe recommends having financial runway before making the leap:
âYou need to be comfortable not knowing where your next paycheck is coming from. Have savings, plan your cash flow, and donât assume youâll replace your full-time income overnight. It can sometimes take 2 years to build a reputation of solid pipeline of leadsâ
Advice for aspiring fractional CFOs
For finance professionals considering the shift, Joe offers three key pieces of advice:
- Ease into itâdonât quit your job right away: Instead, reduce your full-time hours to four days a week and secure your first client before fully transitioning.
- Know your numbers: Set a clear financial target and understand how much you need to earnâincluding taxes and business expensesâto sustain your lifestyle.
- Develop your brand and niche: Unlike a full-time CFO role, where experience alone secures the job, fractional CFOs must sell themselves. Whether itâs financial modeling, fundraising, or systems implementation, having a clear niche helps attract the right clients.
Building a strong pipeline of clients
One of the biggest risks of fractional work is client churnâcompanies can suddenly replace you with a full-time hire or end engagements with little notice. Joe shares a personal example:
âI once got a call at 5 PM on a Friday. The founder said, âWeâve hired someone new, they start Monday.â Just like that, a long-term engagement was gone.â
Because of this unpredictability, fractional CFOs must always be building their pipeline.
Joe recommends:
- Networking regularly â Engage in finance and startup communities to stay top-of-mind.
- Maintaining relationships â Keeping in touch with past clients can lead to referrals.
Without an active strategy for securing new clients, fractional CFOs can find themselves feeling lost or getting complacent. The most successful professionals treat their careers like a business, constantly marketing their skills and maintaining a steady stream of opportunities.
The future of fractional CFOs
With the rise of remote work and lean startups, the demand for fractional finance leadership is growing. Companies benefit from the flexibility and expertise of experienced CFOs without the long-term commitment of a full-time hire. But as Joe warns, this isnât a career for everyone.
âItâs high risk, high reward. You need to be comfortable with uncertainty, constantly selling yourself, and adapting to different founders and industries.â
The fractional CFO path isnât for the faint-heartedâitâs unpredictable, demanding, and requires constant reinvention. But for those who embrace the challenge, itâs one of the most rewarding ways to shape the future of finance while designing a career on your terms.
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