The concept of “wearing many hats” is nothing new for startup culture, especially in the early days. But as startups become increasingly complex—implementing bleeding-edge AI tech, blurring industry lines, and taking on larger challenges—C-suite roles have followed suit.
Nowhere is this more pronounced than in the role of the CFO and its expansion beyond traditional financial duties.
Today’s startup CFOs are more than just financial stewards—they’re strategic advisors who need significant sales, business, technology, and even marketing acumen. They’re confidants, concerned with boosting morale and providing emotional support to the team. And they’re often tasked with forcing some of the most difficult issues.
To illustrate this evolving role, we spoke with Chad Kalebic, VP of Finance and a fractional CFO at Propeller Industries. With a career spanning various industries and companies, Chad has a wealth of experience guiding startups through both exciting and challenging times.
The CFO: The CEO’s Most Trusted Advisor
Startup CEOs come in all shapes and sizes. Often, they’re the “idea” person or the originator of the business concept. They have the passion and the know-how, but they need someone who understands the hard truths and limitations (i.e., the numbers) of running an actual business.
That’s why it’s not uncommon for the CFO to become the CEO’s most trusted advisor, especially in the absence of a COO or a large executive team. “A startup CFO is not just a numbers person; they have to be hands-on, understand the entire business, and often serve as a founder’s closest confidant,” Chad explains. “A lot of the clients we deal with don’t have COOs or big executive teams, so the CFO becomes a strategic partner, a ‘partner in crime’ who understands the business inside out.”
This synergy is only possible with a high degree of trust. The CFO must act as a strategic partner who provides a steady hand through the volatility of the startup journey. Meanwhile, the CFO’s way of thinking about various aspects of finance and business operations gives the CEO the proper footing on which to confidently decide on the company’s strategic direction.
In Chad’s experience, “The trust comes in because you are temperate, and they know that you’re looking at the side they’re often blind to.”
The Startup CFO’s Role Beyond Finance
It may be strange to think of a CFO advising on marketing, sales, and operations, but this is the modern-day reality. The smaller the team, the more likely a CFO will only be effective at managing spend and deciding on the best investments if they have an intimate understanding of every possible aspect of the business.
Founders and CEOs make many decisions daily. Every startup’s CFO should ideally be a sounding board, offering not only financial business advice across various domains but also much-needed perspective and grounded, trustworthy support.
“The founder’s role is very isolated. Who do they talk to? Who do they bounce ideas off of? Sometimes, they just need someone to tell them that it’s okay, that everything is the way it’s supposed to be,” Chad notes.
The CFO also helps navigate non-financial challenges, such as maintaining employee morale and fostering a positive company culture. Startups often go through phases of rapid change, and the CFO is there to provide stability and reassurance. As Chad puts it, “It’s about being more than just a bookkeeper; it’s about being a partner who can help them through all aspects of their business.”
Startup CFOs Role Navigating Good Times and Bad
Every startup journey goes through multiple phases, each with its highs and lows. In other words, decision-makers need to know what to do when they’re recently funded, but also when their backs are up against the wall and they need to make some hard decisions.
And a CFO’s guidance is invaluable across every phase of a startup’s journey:
- Managing Success: During periods of growth, like after closing a successful round, the CFO is responsible for managing new capital wisely, scaling operations, and ensuring that the growth is sustainable.
Chad describes this as one of the most rewarding parts of the role: “Everyone is happy when $30 million lands in the bank, but the challenge is managing that money wisely to build sustainable growth.” A CFO’s wisdom, especially for a CEO who has never seen that kind of money, can be the difference between success and failure. - Guiding Through Difficult Times: During tougher times, the CFO’s role becomes one focused on ensuring the company’s survival. Founders rely on their CFOs for guidance through tough decisions like resource allocation, cost-cutting, and sometimes even considering wind-down scenarios.
Chad shared how he approaches these situations: “It’s about being there when you’re down to your last couple bucks and everything’s on the line. You need to guide them through those waters and help them manage their expenses, but also support them emotionally through that ride.”
The ability to stay grounded and provide practical guidance through turbulent times is what makes a startup CFO so mission-critical for sustained success.
The Startup CFO’s Wisdom: Understanding Founders
A key part of the startup CFO’s role is understanding and aligning with the founder’s vision.
Startup founders are typically optimistic, passionate, and driven, but their ambitions sometimes need to be balanced with a dose of realism. The CFO supports their vision while also providing practical financial guidance to ensure the company’s path forward is always sustainable.
“You have to be quick to understand what the founder’s vision is so you can be a thoughtful partner. It’s not just about the numbers; it’s about seeing the full picture,” Chad says.
The key is balancing optimism with practicality. “You want to support their vision, but you also need to give them the information they need to make grounded decisions. It’s about not diluting their vision, but still steering them in the right direction.” By aligning with the founder’s goals, the CFO becomes a trusted advisor who helps bring a balanced perspective to every decision.
Finding a Modern Startup CFO
Today’s startup CFO provides stability, guidance, and a practical perspective that helps shape the company’s direction through both good times and bad.
“A good CFO is someone who understands the business beyond the balance sheet and can be the person founders turn to, not just for financial advice but for real, honest support,” Chad concludes.
For startups seeking not just financial expertise but also a trusted advisor and business partner, the right CFO can make all the difference. At Propeller Industries, we offer fractional CFOs who bring the experience, insight, and support to help your startup succeed through all stages of growth and challenge. If you’re ready to take your company to the next level with the right financial leadership, Propeller is here to help.
