How to get the most out of fractional talent
By Neda Sahebelm - Fractional COO and Scale Advisor
Regardless of size, industry, product or service - the fact remains:
Founders are busy. Like, really busy. From sales to product to operations, you need to be everything to everyone across every part of your business.
At some point, the pressure to be everything takes its toll.
It’s a hard pill to swallow, but you simply can't be skilled at everything. You can't have your hand in every pot. You can't make visionary decisions or play with creative ideas if you’re stuck in the weeds of every department.
You also don't have endless capital to hire a full team, nor time to focus on leading them effectively.
So as a busy, cost-conscious Founder: where can you find trusted support from someone who's been there, done that without burning cash on hiring?
A fractional what?
A Fractional Executive is a highly-experienced, part-time or temporary leader dedicated to a core function within your business. Examples range from Fractional CPO for Product, Fractional CFO for Finance, Fractional CMO for Marketing and so on.
We're different from consultants, who often come in to audit, diagnose and map how you'd solve a particular problem. Instead, we're your strategic right-handers, a member of your leadership team, a go-to expert for your people and a partner in the trenches with you.
When would i need one?
When something starts keeping you up at night, but as a Founder, you lack the time, in-house experience and endless capital to address it.
There's a vitamin vs. painkiller argument here.
With the vitamin approach (addressing something before it turns into pain), you know a particular priority is approaching and you don't have the right resources. For instance, you know you'll need to hire a team and set up your internal processes to sustain them next quarter, so you start sourcing for a trusted Fractional COO now.
There's also the painkiller approach, where you've let it play out as long as you can with the internal talent you've got, but recognise you’ve reached your ceiling. For example, you've hired the core team and tried to set up ways of working. But you’ve made novice hiring choices and burned through expensive processes without enjoying a measurable return on investment. You need a Fractional COO to reset foundations, bring best practices in and reverse your burn rate.
There's no doubt you can make magic happen with your current team. But candidly speaking, there's only a certain calibre your business can reach with collective inexperience. Having someone who's been there, done that and made all the first-timer mistakes for you can take your business to new, unimaginable heights.
How do i work with a fractional executive?
The beauty of fractional is it's both capable and flexible to meet your business where you're at. An ideal arrangement will be one that works well for both parties across time, cost and scope.
Time: Fractional time doesn't mean fractional commitment. A Fractional Executive comes with heaps of experience, meaning they need less time to contribute the same, if not more output. Either way, you should always know what times your Fractional Executive dedicates to your business, and therefore make the most of your time with them each week.
Cost: Fractionals typically charge for time (e.g. a day rate), outcome (e.g. project rate) or on retainer (e.g. monthly total). This is normally through liquid capital, but can also be a combination of cash and equity.
Scope: It's important to be clear with your goals as a Founder, land on realistic objectives and agree success outcomes with your fractional partner. I'd recommend drafting a clear scope of work, dedicated times and expected milestones between both parties in writing. This will ensure your working relationship has the best chance of sustaining long-term success.
Pros & Cons of working with fractionals
All great things have a dark side too. While Fractionals can be great for some, they also may not be the right solution for everyone. Let’s explore the Pro + Con of taking a Fractional executive.
Pro to taking on a Fractionals executive:
Great for your wallet. A full-time executive is generally on a 6-figure salary and has budget to grow their teams. If you don't have the capital but could benefit from a senior leader, Fractional gives you the best bang for your buck as we can accomplish loads in less time.
We know other Fractionals - meaning if we're not quite the right fit, we can point you in the direction of someone who is.
We're fully committed to your success, whilst independent enough to keep you competitive and up to date with market changes.
We directly combat loneliness! In addition to giving you the gift of time, experience and ROI, we also offer Founders a thought partner and friend through the tougher times.
Con to taking on a Fractionals executive:
We aren’t as readily accessible as full-time staff, as we may have other clients on days we’re not working with your business.
A fully fractional team will have less opportunities to collaborate AND get their own work done. Founders will need to ensure overlaps exist between their fractional team if they want to get everyone together at one time.
If you need a leader for the long haul to fully integrate into the team, you may wish to opt for a full-time hire. If capital is a concern, you may have to hire more junior and train up, or leverage off a Fractional / Advisor until you can fund a full-time executive.
Competing for demand. As fractionals only work with a limited number of businesses at one time, they can be in higher demand than they can resource. This means if you like working with one in particular, you’ll want to snatch them up before someone else does!
To wrap up, busy founders who lack time, capital and resources to build a full team and run their business can answer their prayers with Fractional Executives. Fractionals offer a flexible, cost-effective solution, bringing “been there, done that” experience straight to the founder’s back pocket. Ultimately, founders should weigh up the pros and cons to determine if a Fractional Executive is the right fit for their business needs. If you’re ever unsure, don’t hesitate to get in touch with me or another Fractional to discuss what’s best for your business.
Neda Sahebelm
Fractional COO and Scale Advisor, Founder at Keshty
LinkedIn | Keshty