Many finance professionals are increasingly exploring the option of building a portfolio career as a Fractional CFO (sometimes referred to as a Portfolio Finance Director). It’s a great option for a number of people, as it provides flexibility, variety and good earning potential. It’s not without its pitfalls though, as you’re embarking on a self-employed lifestyle which can be very uncomfortable for many people.
Figure out a plan
If a portfolio career has been on your mind for a while, the best way to assess whether it’s right for you is to map it out and give it a try. Go through all of your worst-case fears, write them down and figure out a plan to mitigate or deal with each one. This helps take the fear out of the unknown, giving you something more structured to work with.
Key Differences to a permanent FD role
There are some key differences compared to traditional employment that are worth being aware of:
- You need to be ready to go. In the Fractional CFO market, you need to be immediately available as the requirement is usually urgent, and you’ll be competing against others who are already available to start.
- Your earnings will fluctuate wildly at times. So financial planning is essential to make provision for this. During quieter periods, it’s easy to panic – but consistency over time and maintaining confidence in your long-term plan is key.
- An anchor client is worth their weight in gold. This is a routine, steady client that you can rely on for regular work and income. They may not be your biggest payers, but with regular hours they will help you build that portfolio. They provide stability, structure and, crucially, predictable income.
Is it right for you?
A Fractional CFO career suits those who are confident working independently, happy to move between sectors, and comfortable without the usual corporate support structure. It’s ideal for those who thrive on variety, like solving commercial challenges, and enjoy helping ambitious SMEs grow.
It’s not for everyone – and that’s okay. But if you’re motivated by autonomy and the ability to shape your own working life, it might just be the right move.
Interested in exploring whether a Fractional CFO path is a good fit for your career? Headstar routinely works with experienced finance professionals making this transition so please get in touch for a confidential chat.
