How do you start a fractional CFO firm business in 2027?

Startup costs: Low — $2K-$7K. QuickBooks/Xero ProAdvisor ($30-$200/mo), Fathom or LivePlan ($50-$150/mo), Excel/Google Sheets, LinkedIn Premium ($80/mo), LLC, laptop. CPA license helpful but not required for fractional CFO work (it's advisory, not attest).

LLC / contracts / insurance: LLC or PLLC depending on state and if you hold CPA. E&O insurance is critical — $1.5K-$4K/yr. Contracts must distinguish "advisory" from "attest" services explicitly to stay outside CPA-exclusivity rules in most states. Engagement letter per client, scope creep clause, monthly minimums (don't do hourly past month 1).

Customer acquisition: Referrals from CPAs, bookkeepers, and business attorneys are 60-70% of pipeline. LinkedIn content (cash-flow tips, board-deck templates, KPI breakdowns aimed at $2M-$30M revenue founders) compounds slowly. Speaking at EO/Vistage/YPO chapters is the unfair advantage. Cold outbound rarely works at this level.

Revenue model: Monthly retainer $3K-$12K per client (5-15 hrs/mo each). Special project fees for fundraising prep, M&A, or system migrations ($10K-$50K). Carry 4-8 clients max as a solo before quality drops.

Year-1 reality: $80K-$220K solo. Sales cycle is 30-90 days because trust matters. Most fail in year 1 because they undercharge — sub-$3K/mo retainers attract clients who treat you like a bookkeeper. Hold the line on price.

Honest: this works because owners hate financial reporting and bankers want clean books. If you can't read a working-capital schedule cold, do not start this firm.