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Writer's pictureConstruction Champions Podcast

Why Construction Companies Need a Fractional CFO

In a recent episode of the Construction Champions podcast, host Ron Nussbaum sat down with Luke Boyenger, CEO of Cruzumi CFO and Advisory, to discuss a critical yet often overlooked aspect of construction business management: financial expertise.


Why Construction Companies Need a Fractional CFO Image

The Value of Financial Guidance in Construction

Breaking the Misconception

Many construction business owners believe they don't need financial expertise if they're:

  • Already profitable

  • Have cash in the bank

  • Running a successful business


Luke Boyenger challenges this mindset, comparing financial guidance to professional sports coaching.


The Golf Coach Analogy

Just like a golf coach can:

  • Quickly identify swing problems

  • Make minor adjustments

  • Dramatically improve performance


A fractional CFO can:

  • Analyze financial statements

  • Identify improvement opportunities

  • Unlock additional profitability


Financial Impact: More Than Just Numbers

Profitability Potential

Consider these eye-opening insights:

  • Improving net profit from 5% to 7% can mean:

    • Significant bottom-line impact

    • Increased business valuation

    • Better exit strategy


Example: On a $20 million business, a 2% improvement means an additional $400,000 in profitability.


Cost vs. Investment

Hiring a Full-Time CFO:

  • Salary range: $213,000 - $354,000

  • Additional costs for benefits, taxes

  • Limited industry-specific expertise


Fractional CFO Advantages:

  • Lower cost

  • Specialized construction industry knowledge

  • Performance-driven approach


Key Takeaways

Why Construction Companies Need Financial Expertise

  1. Accurate financial reporting

  2. Identifying improvement opportunities

  3. Strategic business growth

  4. Potential exit strategy optimization


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Watch the interview today!


Conclusion

Don't view financial expertise as an expense, but as an investment in your business's future. A fractional CFO can be the game-changer that transforms your construction company from good to great.


Remember: The right financial guidance can help you build wealth, leave a legacy, and take your business to the next level.


Keywords: fractional CFO, construction financial management, Luke Boyenger, Ron Nussbaum, Construction Champions Podcast, cash flow management, financial planning, profitability, business growth, strategic decisions


Why Construction Companies Need a Fractional CFO

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