After years of sitting in founder meetings and consultancy briefs, one thing has become very clear. Most founders don't actually know what they want from a CFO.
They know they need someone who can bring order to the chaos, keep investors confident and make sense of the numbers. But beyond that, the brief is often more of a wish list than a clear role description.
They want someone who can model growth, manage burn, optimise CAC, improve dashboards and oversee systems, all for the price of one senior hire.
It is not their fault. Startup life blurs roles. The team is lean, everyone wears multiple hats, and finance often feels like a black box until it becomes urgent.
The result is predictable. Founders end up hiring a glorified bookkeeper with a title, or a financial strategist who is too senior to add day-to-day value.
The Blind Spot: Expansionary vs Defensive Financial Strategy
Another major gap I see among founders is a lack of discernment between expansionary and defensive financial strategies.
In growth environments, many startups operate in expansion mode by default, pursuing scale, market share and perceived momentum. But a skilled CFO understands that not every season of business calls for acceleration. Sometimes the best move is to protect liquidity and build resilience.
Expansionary strategies typically include:
- Entering new markets through acquisitions or partnerships
- Increasing capital expenditure (CapEx) to fuel growth
- Issuing equity or debt to fund new product lines
- Executing share buybacks to signal confidence and strengthen valuation
- Expanding headcount to accelerate sales or R&D capacity
Defensive strategies, on the other hand, include:
- Reducing leverage to strengthen the balance sheet
- Cutting non-essential costs and optimising OPEX
- Improving working capital and cash conversion cycles
- Focusing on profitability over topline growth
- Building cash reserves to absorb macroeconomic shocks
The challenge is that founders often blur the two. They call for aggressive expansion while simultaneously demanding cost control, or they expect to cut spending yet grow valuation multiples.
A well-calibrated CFO knows when to deploy each mode.
Expansion builds momentum; defence preserves endurance.
Without clarity on which one the company truly needs, both strategies end up compromised.
What a CFO Actually Does
- Build financial models that tell the truth about your unit economics
- Prepare the company for investor scrutiny
- Design reporting frameworks that boards and VCs use
- Spot cash flow risks months before they become existential
What they do not do is manage marketing attribution, IT systems or CRM issues. Yet many founders still expect them to.
The CFO Spectrum
Not all CFOs are created equal. Here is a simple breakdown of the types of CFOs most businesses actually need:
| Type of CFO | Best For | Key Responsibilities |
|---|---|---|
| Operational | Early-stage or bootstrapped startups | Financial control, budgeting, cash flow management |
| Strategic | Scaling or VC-backed companies | Modelling, scenario planning, investor relations |
| Transformational | Growth-stage or turnaround cases | Automation, ERP, process redesign |
| Commercial | Revenue-focused businesses | Pricing strategy, margin improvement, performance KPIs |
| Investor-Ready | Pre-Series A and beyond | Fundraising prep, board reporting, due diligence |
| Corporate Development | M&A or exit stage | Deal structuring, valuations, capital strategy |
Fractional CFOs Make the Middle Work
Not every startup needs a full-time CFO. What they really need is access to the right financial leadership at the right time.
That is where fractional CFOs come in. They bring strategic clarity without the cost or commitment of a permanent hire.
At SeatOne, we are building a network of finance operators and CFOs who understand this balance. Professionals who know when to step in, when to step back and when to ask the right questions before solving the wrong problems.
Conclusively
If you find yourself saying:
- "We just need a CFO to help us raise"
- "Our books are fine, we just want better visibility"
- "We want someone who can do finance and marketing data"
You may not need a CFO yet. You just need clarity. You need structure. Perhaps you just need to know which version of the CFO your business truly requires.
Until you do, you will keep searching for three executives in one person.