Decide when to hire a CFO

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that are moving beyond close and compliance.

The quick answer

Make the move when the work shifts from close and compliance to strategy and capital. Triggers include bank covenants, M and A, complex pricing, or a need for planning and investor communication. Many firms feel this between twenty and thirty million, but the real signal is complexity and risk.

The method in six steps

List the triggers you face
Debt with covenants, acquisitions, fundraising, multi entity structure, or volatile input costs.
Define the CFO job to be done
Capital planning, banking relationships, pricing governance, forecasting, and communication with owners and the board.
Assess current team capacity
What the controller and finance team can cover and where risks sit.
Choose role shape
Fractional to cover near term complexity, or full time if the triggers are persistent and strategic.
Write the first ninety day plan
Cash and covenant view, pricing rhythm, forecast process, and board pack.
Decide and hire
Use a scorecard that favours stage fit and evidence of building the planning and pricing rhythms you need.

Example

At twenty four million with new bank covenants and planned M and A, a company hired a seasoned fractional CFO. Within ninety days they had a cash and covenant dashboard, a pricing review rhythm, and a reliable forecast.

Pitfalls and fixes

Hiring too early for title. Use fractional support until the job is strategic and full time.
Vague scope. Write the job to be done and the first plan.
No owner for pricing. Put pricing rhythm under the CFO once in seat.

Checklist

Triggers listed
CFO scope written
Team capacity assessed
Role shape chosen
Ninety day plan drafted