Yesterday, I had a phone chat with a newly minted Fractional CFO.

While he's new to the fCFO world, he's not new to being a CFO. He's spent decades in the seat. Brilliant background. Great track record as a full-time CFO. He’s the kind of guy who can walk into a $30M company and immediately spot millions of dollars in opportunity.

But there's a problem (or else I wouldn't be writing about our call, I suppose): he’s 3 months in and he's already burning out. And the kicker? He’s not even making that much money.
 

What he didn't see coming

Right now, his client roster looks like this:

• 4 clients total.
• 2 are big (multiple 8-figure companies).
• 2 are small (one of them is just $2M in revenue).

On paper, that doesn’t look bad. But peel back the layers and it’s a mess.

He’s spending a ton of time on onboarding - building reports, digging into the numbers, talking to the client’s team, and looking for ways to increase revenue and gross profit. He’s doing the hard work that's required to drive the outcomes our clients need.

The problem? He’s barely charging for onboarding, and it's taking much more work than he anticipated.

And when it comes to his ongoing fees, the small clients can’t afford much, and the big ones got sweetheart deals because they were his first clients and he didn’t feel confident charging more.

He’s delivering CFO-level outcomes for part-time controller-level pay.

The First Big Mistake: Free Onboarding

Let’s get one thing straight: onboarding isn’t free.

When you walk into a new client, you’re not just flipping a switch. You’re often doing things like:

• Cleaning up numbers.
• Aligning with leadership.
• Building reporting infrastructure.
• Understanding the business model.
• Setting the foundation for all future strategy.

 
That’s real work. It’s scope. And it has a clear dollar value.

If you’re skipping the onboarding fee, you’re telling clients, “All this setup work? It’s just part of the package.”

That’s crazy talk and I forbid you from doing it ever again 😀

The truth is, onboarding is arguably the most valuable period of the engagement. Don’t apologize for charging for it. Put it in your scope. Price it fairly (proportional to value, not hours worked). Start the relationship on the right foot.

The Second Big Mistake: The Trap of Small Clients

Here’s where I had to be blunt with him:

$2M businesses don’t need a Fractional CFO.

At that size, what they really need is a solid bookkeeper, maybe a part-time controller, and a few tools to track cash. They don’t need a high-level financial strategist (and they can’t afford one).

Do the math:

• Say you take a $2M company from 5% net to 15%. That’s a $200K improvement.
• Impressive percentage-wise, but does that justify paying a Fractional CFO $8K/month or more? No.

It just doesn’t pass the straight-face test.

So your only option is to charge them less. Maybe $2k/month.

Unfortunately, smaller clients don't take less time to serve. Now you're stuck spending the same amount of time on a $2k client as you would be spending on an $8k client.

Opportunity cost, anyone?

This is where so many new Fractional CFOs get stuck. They say yes to small clients because it feels easier and safer. But the reality is those clients will drain your time (and energy?) and prevent you from growing.

If you want a sustainable firm, you must become disciplined about saying no to the wrong clients. Yes, it's hard. Welcome to business.

The Third Big Mistake: Discounting Big Clients

This one’s even worse.

My friend has two clients doing tens of millions in revenue. Even better, they have low, single-digit net margins.

These are ideal clients! The type of businesses where your decisions can add millions in net profit.

But he’s charging them peanuts. Why? Because they were his first clients and he was nervous.

Here’s the reality: when you help a $30M company move net margin from 5% to 15%, you’ve just created $3M in additional profit.

And yet, he’s charging nearly the same rates he charges the $2M client.

As Mr. Wonderful would say, "Stop the madness!"

Discounting your biggest clients is a silent killer. Not only do you leave money on the table, but you also set a precedent for the client (and yourself!) as to what you're worth.

And guess what the expectation will be if those clients refer their buddies...

My Advice: Three Non-Negotiables

I gave him three clear action steps. These are the same steps I’d give to any Fractional CFO who wants to stop burning out and start scaling.

1. Charge for Onboarding (Always)

List out every deliverable in the first 60–90 days. Build a scope. Put a price on it.

For most Fractional CFOs, that should be $10K–$30K. 

Now, to be clear, if you're "onboarding" only consists of getting access to QBO and putting together a 13-week cash flow forecast, then you shouldn't be charging multiple 5-figures for onboarding.  

2. Cut the Wrong Clients

Be ruthless. If the economics don’t make sense for you and your goals, move on. Every hour you spend on a $2M client is an hour you’re not spending on an 8-figure client who can pay you double or triple.

3. Raise Your Rates

Stop anchoring your pricing to your insecurities. Anchor it to the value you deliver.

If you can generate a $3M lift in net profit, charging $12K/month is not only fair - it’s a bargain.

You've probably heard the old saying, "Charge what you're worth." This is how you do that.

Why So Many fCFOs Screw This Up

 It’s not about skill. Most Fractional CFOs who have been full-time CFOs have the chops. They’ve been in the trenches. They know how to run finance at a high level.

The problem is mindset.

• We underprice because we’re new to the fractional model.
• We cling to small clients because it feels less risky.
• We give away onboarding because we don't want to scare off new business.

But none of those things build a business. They just build a cage. Not even a good cage. Just a really crappy one.

The Challenge

Here’s what I want you to do today:

Audit your client list.

• Which clients are too small to ever justify your fee?
• Which ones are massively underpaying you?

Then audit your onboarding process.

• Does your fee reflect the value you're actually creating?
• What adjustments are necessary to scope or pricing?

Finally, do something about it! Raise a fee. Cut a client. Overhaul your onboarding scope.

I'd like to leave you with a wild truth (and I know this is truth because I live it and I know others that do too):

You don’t have to be burned out OR underpaid as a Fractional CFO.

You just have to start working with the right clients and charging like the outcomes you deliver actually matter.

Because they do.