What Can a Fractional CFO for Startups Do for Your Plumbing Business?   

Last year, we signed up for a gym membership in January. We made up our minds and decided to hit the gym three times a week. We started strong, but after some days (in fact, in February), life happened, and the gym membership collected dust in our wallets. But what shocked us after a few months was that we were still paying for that membership.   

Put this story in context and think about your plumbing business. You are getting more jobs and bringing revenue, but somehow, money is slipping through the cracks. What could be the reason?   

That’s where a Fractional CFO for startups comes in. They’re like a personal trainer for your business finances, making sure your hard-earned money works for you. So, let’s break down what fractional CFOs are and what they can do for your plumbing business.   

What Does a Fractional CFO Do?  

Think of a Fractional CFO as the financial expert who steps in when your plumbing business needs financial guidance but without the hefty price tag of a full-time executive. They work part-time or on a contract basis, diving into your books, cleaning up financial messes, and ensuring everything runs smoothly. It’s kind of like upgrading an old, leaky plumbing system.  

But their role goes beyond calculating numbers. A Fractional CFO is a strategic advisor, helping you make informed decisions about expanding your business, investing in new equipment, or even navigating mergers and acquisitions.   

Ok, so if this is something new for you, let’s break it down with an example: 

Let’s say you’re running a busy plumbing business. You are landing more jobs than ever. But despite all the work, you’re constantly struggling to make payroll or cover supplier costs.  

A Fractional CFO analyzes your financials and finds the problem—you’re giving clients too much time to pay, and your invoicing process is inconsistent.   

They introduce a structured payment system, requiring upfront deposits and implementing automated invoicing reminders. Within a few months, your cash flow stabilizes.   

When Do You Need a Fractional CFO for a Plumbing Business?  

The simple answer? The sooner, the better.  

You might think, “I’ll hire a CFO when I have more revenue,” but here’s the thing—not having one could cost you more than hiring one. A Fractional CFO helps you avoid costly financial mistakes, optimize cash flow, and plan for the future before realizing you need it.  

You know, running a plumbing business can be like working on a major piping system—there’s always something hidden beneath the surface. You might be landing jobs, but are you pricing your services profitably? Are you keeping enough cash on hand for slow months? Are you unknowingly losing money on bad contracts? A Fractional CFO helps you answer these questions and many more, acting as a financial strategist who keeps your business on track.  

The requirement of a CFO for your plumbing business depends on your business stage.   

Early-Stage ($3,000 – $5,000/month)  

At the beginning, your books might be simple. Jobs come in, invoices go out, and cash flow sort of makes sense. A Fractional CFO at this stage helps you lay the financial foundation for scaling up, ensuring you’re pricing services correctly, managing cash flow, and structuring your business in a way that won’t cause financial headaches later.  

At this stage, they’ll ask questions like:  

• What does a business need today?  

• How can we predict cash flow and minimize surprises?  

• What’s the best way to structure finances for long-term stability?  

Growing and Scaling ($10,000 – $15,000/month)  

As your business grows, things get more complex. You might have a bookkeeper, but now you need a senior financial strategist to handle:  

• Customer contracts (Are you leaving money on the table?)  

• Profitability analysis (Are all your jobs actually making money?)  

• Software implementation (Do you need QuickBooks or an ERP?)  

• Expansion planning (When is the right time to hire more staff or buy new equipment?)  

Full-Time CFO Transition (Beyond $15,000/month)  

Eventually, your business will outgrow a Fractional CFO, and bringing in a full-time financial leader will make sense. By this point, your CFO will be integral in:  

• Expanding operations  

• Managing investor relations (if applicable)  

• Structuring the company for long-term success  

Along with these business stages, how fast your business grows matters, too.   

Your growth rate determines how much financial oversight you need. A plumbing business growing steadily can manage with a Fractional CFO a few hours a week, but if you’re rapidly expanding—taking on more clients, hiring more staff, and adding new services—you need a full-time CFO.   

Without one, your finance team may struggle to negotiate contracts, manage supplier pricing, or secure the best loan terms. Worse, your financial planning and forecasting could fall apart, leaving you scrambling when tax season or major expenses hit.  

Benefits of a Fractional CFO for The Plumbing Business  

What would you do if your company suddenly grew? You might think that’s great Tangent! It is, but without anyone to oversee financial operations, cash flow management, or strategic planning, the company faces serious financial disruption. This is one of the situations where hiring a fractional CFO can help your plumbing business. Let’s find out what more benefits can they bring:   

Strategic Financial Planning  

A Fractional CFO plays a crucial role in creating a strategic financial plan that aligns with your business’s long-term goals. They don’t just look at numbers—they analyze industry-specific challenges like seasonal demand shifts, fluctuating material costs, and supplier pricing trends to build a plan that keeps your finances stable year-round.  

For example, during the busy summer months, a CFO might strategize cash reserves to cover slower winter periods, ensuring you’re not caught off guard when demand dips.  

Creating a Pricing Strategy  

Pricing your plumbing services isn’t just about covering costs—it’s about understanding your true value and maximizing profitability. As your business grows and demand increases, figuring out the right pricing strategy becomes even trickier.  

A Fractional CFO analyzes:   

• What does it cost to deliver each service (materials, labor, overhead)?  

• The value your services provide compared to competitors.  

• Market rates 

• Profit margins 

These key factors help create a pricing strategy that keeps your business profitable.   

If you want to dig deeper into the pricing strategies, we have a detailed guide, which you can check here.   

Cash Flow Management  

Cash flow problems are a familiar pain in the……, especially during the off-season when business tends to slow down. Almost every plumbing company experiences financial fluctuations throughout the year, but how you manage those ups and downs makes all the difference.  

A Fractional CFO helps you implement the right financial strategies to maintain a steady cash flow, even during the slower months. They keep your business financially stable year-round by analyzing past financial data, forecasting future needs, and setting up systems to ensure timely invoicing and collections.  

Profitability Analysis  

Knowing that your plumbing business is bringing in revenue is great—but how much of that is actually turning into profit? A Fractional CFO digs deep into your financials to analyze revenue trends, cost efficiency, and overall profit margins.  

They pinpoint where money is slipping through the cracks and develop strategies to increase profitability, such as:  

• Optimizing pricing strategies to ensure every job is worth your time.  

• Reducing operational inefficiencies that eat into your bottom line.  

• Benchmarking against industry standards to keep you competitive.  

• Implementing performance metrics to track growth and profitability over time.  

Scalability  

Your plumbing business isn’t static—it’s constantly evolving. You need financial leadership that adapts to your growth, not slows it down.  

A Fractional CFO provides exactly that. Unlike a full-time hire, they offer flexible, on-demand financial expertise that scales with your business needs. Need more support during peak seasons? They can step in. Want to cut back during slower months? You’re not locked into a long-term commitment.  

This scalability ensures your financial strategy grows with your business, allowing you to stay competitive without the overhead of a full-time CFO.   

Risk Management  

Running a plumbing business comes with financial risks, whether it’s market fluctuations, unexpected expenses, or compliance issues. The problem is many of these risks only become obvious when they’ve already caused damage.   

A Fractional CFO assesses everything from cash flow risks to supplier dependencies, ensuring your business has a safety net. Here’s how they do it:  

• Implementing strong internal controls to prevent fraud and accounting errors.  

• Monitoring industry regulations to keep you compliant and avoid costly penalties.  

• Running financial stress tests to prepare your business for market downturns.  

• Creating risk-mitigation strategies so unexpected financial hits don’t derail your growth.   

Financial Forecasting  

Planning for the future isn’t just about gut feelings—it’s about data-driven financial forecasting that helps you make the right decisions at the right time.   

A Fractional CFO analyzes your numbers, analyzing historical trends, market conditions, and business performance to create accurate financial projections.  

• They forecast cash flow to ensure you have enough funds to cover expenses, even in slower months.  

• They provide revenue predictions. This helps you anticipate future earnings based on industry trends and past performance.  

• They create conservative, moderate, and aggressive forecasts to prepare you for best- and worst-case scenarios.  

• They provide solid financial reports and forecasts that increase your chances of securing loans or investor backing.   

Questions You Should Ask When Hiring a Fractional CFO  

If you are still on the fence about whether bringing in a Fractional CFO is the right move for your plumbing business. We have prepared a set of questions you should ask yourself when hiring a fractional CFO for startups.   

• Are you comfortable handling the financial side of your business yourself? If not, do you have someone on staff who can? And if they take on financial tasks, what important work are they neglecting?  
• Is your team wearing too many hats? If your staff manages financial responsibilities on top of their main roles, is this affecting efficiency and slowing down operations?  
• How confident are you in working with banks, CPAs, and investors? Do you (or your team) have the expertise to negotiate loan terms, handle tax filings, or prepare financial reports without missing key details?  
• What kind of CFO leadership do you need? Are you looking for a strategic advisor to guide you through key decisions, or do you need someone more hands-on to manage your finance team and improve financial processes?  

By answering these questions, you’ll get a clear picture of whether a Fractional CFO is the missing piece in your business strategy.   

Final Thoughts  

So, there you have it! A Fractional CFO for startups isn’t just someone who calculates numbers; they’re a strategic partner who helps your plumbing business operate more efficiently and profitably.   

The earlier you bring one in, the sooner you can avoid costly mistakes, improve cash flow, and plan for sustainable growth. Even if it’s just a few hours a week, their expertise can make a huge difference in how you run your business.  

At the end of the day, if the cost of not hiring a Fractional CFO outweighs the investment in one, then it’s time to bring in the right financial leadership.   

Speaking of financial leadership, if a question pops into your head, “Where can I find a fractional CFO”? Well, the good thing is you don’t need to open another tab. Tangent Consulting has years of experience as a fractional CFO, business coach, and tax consultant. With us, you don’t need to hire an accountant or business coach separately; you can get both in one place.                             

P.S. If you are reading this, it means you can have access to our free consultation for your business. Avail this for free today before we change our mind 😉   

FAQs  

How many hours do fractional CFOs work?  

Fractional CFOs typically work a few hours to a few days per week, depending on your business needs.  

How much do fractional CFOs charge?  

Fractional CFOs charge between $3,000 and $15,000 per month, depending on their experience, workload, and business size. Some may also charge hourly rates ranging from $200 to $500 per hour.  

Is a CFO an Accountant?  

Accountants focus on recording and managing finances. On the other hand, a CFO strategically plans, analyzes, and drives financial growth, helping businesses scale and make informed decisions.