A Brief Summary of Third Road Management
Third Road Management is a professional services firm founded in 2015 with the mission to revolutionize how small to mid-sized organizations view and manage their financial operations. We offer what we call a “re-imagined CFO suite,” providing clients with access to fractional CFOs, controllers, and bookkeepers on a flexible basis. Our goal is to help organizations enhance their financial strategies and operations, setting them up for long-term success. We cater to businesses of various sizes, helping them manage their financial health in a way that was traditionally only accessible to larger corporations.
Why and How Did You Start Your Company
The idea behind Third Road Management began as a side project in 2014. I was approached by a family friend who needed immediate help after their CFO abruptly resigned. This led to a fruitful collaboration where we significantly improved the business’s financial health. Soon after, another friend in a different industry asked for similar help, and I realized that many small to mid-sized organizations face significant gaps in financial, operational, and strategic expertise. Unlike larger corporations, they don’t have the luxury of hiring full-time CFOs or assembling a robust financial department, but they still need expert guidance.
This realization was the epiphany that sparked Third Road Management. I started legally organizing the business in October 2015, launched the website and branding by spring 2016, and began working full-time on the business in January 2017. The company was bootstrapped with an initial investment of $5,000, which I used for legal services, logo design, and a website. We’ve grown steadily since then, with the “fractional CFO” concept gaining significant traction in the market.
What Has Been Your Biggest Success Factors
One of the biggest success factors has been our ability to differentiate ourselves in a crowded market by offering a unique blend of services. The term “fractional CFO” wasn’t widely recognized when we started, but now it’s a growing industry. By positioning ourselves as strategic financial partners rather than just outsourced accounting services, we’ve carved out a distinct niche.
Another key success factor is the strength of our team. From the beginning, I have surrounded myself with people who are smarter than me, particularly in areas where I lacked expertise. This collaborative approach has allowed us to build a world-class team of fractional CFOs, controllers, and bookkeepers who deliver exceptional value to our clients. Their expertise and commitment to our mission have been critical to our sustained growth.
Moreover, we’ve managed to maintain a consistent revenue stream from the start. Our early decisions to hire part-time, on-call staff helped us navigate cash flow challenges, and we’ve never had an unprofitable month since our inception. Word-of-mouth referrals from satisfied clients have also been a major driver of growth, with new business coming in regularly thanks to strong relationships and networking efforts.
What Are the Biggest Challenges You Have Faced Launching and Running the Company
One of the biggest challenges has been bootstrapping the business without external capital. While this has kept us nimble and allowed us to grow on our terms, it also created constant tension between scaling and maintaining cash flow. Early on, I had to carefully manage the balance between having enough work for employees and ensuring we had the right level of staffing. Hiring part-time workers helped, but it was still a delicate balancing act.
Another challenge has been educating the market about what we do. Initially, people struggled to categorize us because they weren’t familiar with the concept of fractional CFO services. I spent the early years of the business explaining what we are and what we’re not, and it took time to build the brand and differentiate ourselves from other consulting firms, interim placement agencies, and outsourced accounting services.
Finding the right growth strategies has also been a learning process. For example, early investment in direct mail campaigns and SEO/SEM didn’t yield the results we hoped for, so we had to pivot and focus more on networking, personal updates, PR and content marketing like our podcast, “The Drive-By Entrepreneur.”
Which Do You Think Is Most Important: The Right Market, The Right Product, or The Right Team?
In my experience, the right team is the most critical factor. The market and product matter, of course, but a great team can adapt, innovate, and overcome challenges in ways that even the best market opportunity or product can’t. The core of Third Road Management’s success lies in our ability to bring together talented professionals who believe in the company’s vision. Without the right people executing the strategy, none of the other factors would be as impactful.
That said, having a product that truly solves a problem for a specific market is also crucial. Our services address a significant gap for small to mid-sized organizations, which often lack the resources for full-time financial experts but still need strategic financial guidance. This alignment of our product with the market’s needs has helped fuel our growth, but it’s our team that delivers on the promise of that product.
Final Words for Those Chasing the Startup Dream
Entrepreneurship is not for the faint of heart. It’s a path filled with uncertainties, risks, and challenges, but the rewards can be deeply fulfilling. My advice to those pursuing the startup dream is to build a strong team and stay true to your vision, even when things get tough.
Bootstrapping may require more patience and creativity, but it forces you to make smarter decisions and develop a deeper understanding of your business. Trust your instincts, but also be willing to pivot when things aren’t working. Build authentic relationships, network constantly, and don’t be afraid to take risks. Most importantly, don’t lose sight of why you started in the first place – your purpose will keep you going when the challenges feel overwhelming.
In the end, the journey will be filled with ups and downs, but if you stick with it, you’ll learn more than you ever imagined and build something that is truly your own.
John Frank, Founder & CEO of Third Road Management LLC
I am the Founder and CEO of Third Road Management, a leading fractional financial services company focused on revolutionizing how small to mid-sized companies run their finance and accounting functions, i.e., “the CFO-Suite.” At Third Road Management, I am responsible for the firm’s overall directional leadership in addition to serving as a Fractional CFO for multiple Third Road Management clients. Throughout my career I have had the opportunity to work in a variety of leadership roles in corporate finance, ranging from M&A accounting work, high-yield asset management and distressed fixed income trading.
My passion is helping small businesses grow and scale – there are over a million organizations in the United States that have less than $100 million in revenue that I believe can utilize our services. My goal is to help as many of them as we can and do it by standards that others measure themselves against.
