Gareth Rowe: Fractional COO/CFO Q+A

Gareth Rowe is a 20-year plus veteran of working directly with Founders of tech start-ups and achieving significant results including huge revenue growth, fundraising and exits via sale or IPO. Neither a consultant nor a coach, Gareth takes an executive role within the business to assist the Founder(s) in driving it forward.

Gareth is passionate about assisting start-ups move to scale-ups and beyond, through sitting alongside new CEOs and helping them along their path.

Complete this sentence as concisely as possible, “I am a… “

Fractional COO/CFO

Are there any other titles/terms that people commonly refer to you or you refer to yourself as?

I have acted as a mentor and an adviser to a number of companies, indeed, I act as a mentor for a CEO now, and so I have been referred to as a business adviser, a mentor and even a business consultant, but I tend to shy away from, discourage even, the latter. It’s just not what we do as Fractionals.

How would you say you stand out from others that do a similar job?

I tend to specialise in technology companies and over the last 20 years I have held senior positions within companies in the aerospace, IT, Software, Cyber Security and SaaS sectors, as well as working with specialist engineering and manufacturing companies. I also tend to work with early-stage companies, especially those moving from start up to scale up, or currently scaling up, with a passionate first-time founder. I’m frequently told that my broad and rather long experience, which also includes M&A work and turnarounds/Restructuring, brings quite unique perspectives to operations and strategy.

We are keen to know more about your work as a fractional. Could you perhaps share a few details about projects you have done in the past?

One of my more recent engagements, which started as a result of a colleague’s request to look over his wife’s contract of employment, gives a good idea about what my work as a fractional entails. Having looked at the contract and done some research on the company which had issued it, I met with my colleague’s wife and one of her new business partners, who was to become the CEO of their new venture. Once I understood his vision, I proposed the somewhat radical strategy of going out and buying the wife’s former company.

After outlining a plan of how we could do it, we completed the transaction within six months, securing a vendor loan in the high six-figure region. The company we had acquired was seriously loss making, at around £500k per annum on a £3.5 million annual turnover. Six months later, we had returned the company to profit, and after our first 12 months in charge, we posted a £100k profit after write offs and exceptionals, on a reduced turnover of just under £2.8 million. A year later, the vendor loan was repaid in full including interest.

Further projects with that client included a further acquisition in the US and growing that business from @ $1.5m per annum revenues to $8 million revenues per annum over a 2.5-year period.

Is there anything you’d share with aspiring fractionals?

A couple of things. Build good networks – I have been continuously employed in this field for 20 years and I have secured each engagement via word of mouth and that leads on to maintain good relationships, especially as an engagement is coming to an end. Finally, understand thoroughly the purpose and the mission of not only each client, but of each engagement. Realise why you are there; it’s often to support a new CEO or SLT so let them lead whilst using your unique expertise and experience to assist them in realising their vision.

Anything you’d like to add?

Following on from the question above, the question I have been asked most is, how do you balance working on one engagement whilst actively looking for the next?

When I take on a new engagement, I always try to limit that engagement to four days a week or less. It’s not always possible, but it’s something I always aim for. I use a part of the fifth day for networking and the other part for increased family time. Now I know a lot of fractionals often shy away from doing pro bono or reduced fee work, which I can understand as we all have to make a living. However, I am yet to find providing short term, half a day per week, for a maximum couple of months advice or assistance to a new client, pro bono, fail to pay dividends. My only caveat being I’m receiving fees from another engagement!