4 Fractional Executive Roles Your Small Businesses Can Outsource
The concept of "fractional" executive support has gained significant traction recently, yet many are still unfamiliar with what a fractional executive does.
Let’s review what the benefits are of hiring a fractional executive over a full-time employee and what types of executive roles to outsource first.
What is a Fractional Executive?
Simply put, a fractional executive is a part-time, executive-level professional who simultaneously provides expertise to multiple businesses, typically on a retainer or hourly basis.
A fractional executive is typically an experienced business person who has held executive roles and now chooses to offer their expertise to several companies.
Why Should Small Businesses Outsource Executive Roles?
Fractional executives are a cost-effective solution allowing growing businesses to access senior leadership without being committed to full-time salaries.
This arrangement is especially beneficial for small businesses that require executive guidance but do not have the resources or need for a full-time executive team.
These fractional executives will be accessible on a retainer basis or by the hour. As a result, getting their support is far cheaper than hiring your own complete executive team.
4 Key Fractional Roles Small Businesses Should Outsource
The most common types of fractional executives you can hire include Fractional Chief Executive Officers (CEOs), Chief Operations Officers (COOs), Chief Financial Officers (CFOs), and Chief Marketing Officers (CMOs). There are far more roles in the C-suite, like human resources, product, data, information, etc., but these are less common to outsource as a small business.
Let’s break down what each of these types of executives can do for your business and why they are a popular outsourcing option.
1. Why Hire a Fractional CEO
A Fractional CEO brings seasoned leadership to your business and knows what it takes to run it.
They’ll support you with strategic planning, scaling your operations, and making pivotal decisions. Small business owners will bring in a Fractional CEO for periodic planning sessions, such as when building their annual business plan or determining their investment strategy in team, technology, and training.
Think of them as business advisors but with a more hands-on approach to guiding the tactical aspects of business growth.
Engaging a Fractional CEO is particularly valuable for newer CEOs or those facing new challenges in their leadership journey. Most fractional CEOs also typically hold regular monthly meetings to help keep the small business owner accountable.
2. Why Hire a Fractional COO
The Fractional COO focuses on turning strategic plans into operational successes.
They assist in streamlining processes, addressing bottlenecks, and enhancing efficiency across your operations. They often delve into financial aspects of operations, such as pricing strategies and optimizing cash flow, to support sustainable growth.
Fractional Chief Operations Officers are excellent at taking ideas from your conversation with a Fractional CEO and developing a step-by-step plan to bring it to real-life business action.
If you decide to work with The Boutique COO business advisors, you’ll find that we have seasoned business executives who can act as both your Fractional CEO and Fractional COO in the same strategy session. Making it easy for you to make a concrete plan to take your business to the next level.
3. Why Hire a Fractional CFO
Well-known in the small business realm, a Fractional CFO maximizes financial health.
Given the importance of finances to small business owners, it’s not surprising that these fractional executives are so popular!
They guide tax entity setup, tax filing best practices, and overall financial planning. This role is crucial once your business is operational and ready to scale financially, perhaps even preparing for an eventual exit.
Unlike a Fractional CEO or COO, the Fractional CFO tends to start working with small business owners once they’re off the ground. Only once you start to handle more money will it really matter to begin planning your financial model and getting your key performance metrics tracked to have an exit plan one day.
4. Why Hire a Fractional CMO
Lastly, let’s talk about Fractional CMOs. A Fractional CMO comes into play once your business foundation is solid, focusing on refining and implementing growth strategies through marketing.
A fractional CMO will generally bring a background in various types of marketing, including social media, email marketing, SEO, website optimization, and more.
If you decide to hire a Fractional CMO, it’ll likely begin with developing a marketing strategy. Depending on what your small business needs, this could also include brand strategy and positioning.
Once complete, you’ll work with your Fractional CMO to determine who will help you implement that strategy. Most small businesses opt to work with a social media manager or marketing assistant who can help take the strategy and make it a reality.
Interested in Leveraging a Fractional Expert for Your Small Business?
Fractional executives are not just temporary hires; they are strategic partners that can propel your business to new heights.
By outsourcing these four executive roles, you manage your resources efficiently and infuse your business with expert knowledge and leadership tailored to your specific needs.
Ready to Explore Fractional Leadership?
If you’re considering executive support to help your business grow, we encourage you to check out The Boutique COO growth strategy sessions. Our fractional business advisors are versed in all 4 roles so you can maximize the output from your strategy sessions.
Schedule your free 30-minute strategy session today to discover how TBC’s fractional executives stand out from the rest.
