Opinions expressed by Entrepreneur contributors are their own.
As a business owner, I know firsthand the countless challenges that come with running a company. With responsibilities ranging from financial management to marketing strategies, it can often feel overwhelming just to keep your head above water. It’s for this reason that expert support is valuable, and fractional executives can provide a service that addresses challenges and promotes growth.
As the founder of a fractional leadership firm, I have worked with businesses in various growth stages. From managing rapid expansion to making critical operational decisions, fractional partnerships allow clients to receive executive-level support at a fraction of the cost, time and effort, empowering them to succeed efficiently. While this success is easily attainable for most businesses, having the right team is a crucial aspect of such success.
In this article, I’ll discuss the role and benefits of fractional executives and how to choose the right ones for your needs.
What are fractional executives?
Fractional executives provide cost-effective part-time or interim support for growing businesses, offering expertise in areas like strategic planning, operational streamlining, revenue operations, marketing, finance and sales. They also stay updated with the latest efficient infrastructure for your business, ensuring it’s customized to your specific stage and scale.
Signs that you may need a fractional executive
You need expertise in a specific area.
You have ambitious growth goals and require help achieving them.
You’re facing a critical business challenge and need guidance navigating and resolving it.
Your rapidly growing business lacks the structure to support growth.
You need leadership support during a transition or restructuring period.
You find yourself working in your business rather than on your business.
You want to implement new technologies, systems or processes, but you lack the appropriate resources or expertise to do so.
You lack the capacity to stay current with industry and technology trends.
You want to improve leadership practices and company culture but need guidance on where to start and how to create lasting change.
You lack a cohesive system for connecting outsourced functions and aligning them with your business goals.
Benefits of a fractional executive
Fractional executives offer a flexible solution for businesses that need experienced executives without the commitment and cost of a full-time hire. Unlike hiring a full-time executive, you can work with fractional executives on an as-needed basis, allowing you to enjoy the benefits of a seasoned executive without committing to a long-term, super-high expense. This can be especially beneficial for small to mid-sized businesses that want to grow but have limited resources.
Expertise and experience:
Fractional executives’ exposure to diverse systems, companies, processes, structures and challenges from working with numerous businesses (often hundreds) gives them a significant edge over full-time executives, who typically hold only 5-6 positions in their careers. This extensive experience provides fractional executives with unparalleled expertise and insights, enabling them to deliver faster, more effective solutions for your business.
Flexibility and scalability:
As a full-time executive, I found that 80% of my time was spent on tasks that could be done by more junior staff, given the right guidance. This observation reinforced my belief that many companies don’t necessarily need a full-time executive, as the role doesn’t always warrant constant high-level attention. Fractional executives can be hired on a flexible basis, ranging from just a few hours a week to a longer-term commitment over several months. This can allow you to scale up or down as your business needs change, ensuring that you have the right amount of support whenever you need it.
Objectivity and perspective:
Fractional executives offer an outsider’s perspective to your operations, strategy and business practices, providing unbiased feedback and advice to help you make informed decisions. This partnership allows for a more even relationship, working at eye level rather than the traditional, more restrictive manager-employee relationship. This approach can be especially valuable when identifying blind spots or areas for improvement, as fractional executives bring a unique perspective thanks to their experience with a multitude of businesses.
Types of fractional executives
Outsourcing specialized roles like CFO and CMO gave rise to fractional executives, now covering roles like COO, CTO, CHRO and more. This approach lets businesses customize their executive teams to match their goals and needs, tapping into the unique skills and expertise of fractional professionals.
Fractional executives can be:
Interim executives: for short-term leadership gaps
Project-based executives: for specific project expertise or guidance
Strategic advisors: for long-term planning and opportunity identification
Ongoing support: for smaller companies needing continuous assistance
How to choose the right fractional executive
Identify your needs:
Identify critical areas, and seek a fractional executive with the right expertise. Consider using their insights to spot gaps and help you refine your search, securing the perfect fit for your business.
Evaluate relevant experience:
Choose a fractional executive based on a successful track record, relevant experience, positive references and commitment to fractional work as a career (rather than a side or temporary hustle).
Assess their style:
Look for an executive who is responsive, proactive and able to communicate clearly and effectively. Schedule an initial consultation to get a sense of their working style and consider whether it aligns with your own.
Choose a fractional executive who shares your passion and can work collaboratively to achieve your objectives. Keep an open mind, and consider their suggestions, as their experience can offer valuable insights.
Consider your readiness:
During the initial consultation, assess your readiness to delegate control. If you’re not prepared to treat this as a partnership and loosen the reins, a fractional executive may not be the right fit. Trust is key, so choose someone you’re comfortable collaborating with, and formulate a transition plan that cultivates that trust.
By partnering with a fractional executive, you can tap into their specialized skills and expertise, giving your company a competitive edge and positioning it for long-term success. So, whether you’re seeking to grow your business or address critical challenges, consider that a fractional executive could very well be the missing piece that propels your business to success.