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Small and medium-sized businesses (SMBs) often face unique challenges. Whether it’s expanding a business, managing cash flow, or finding specialized talent, business owners often need expert guidance to move forward. Senior talent in the form of fractional executives offers a potential solution, allowing companies to leverage advanced expertise on a flexible part-time basis. Hiring fewer people can be the catalyst small businesses need to break out of growth plateaus and scale efficiently without the overhead of full-time employment.
What is a fractional executive?
Fractional executives are experienced professionals hired part-time to lead specific areas of a business. This arrangement gives business owners access to expertise as needed and provides flexibility in resource management. Fractional executives are often brought in with specific growth assignments and provide deep domain expertise.
As your business grows, your leadership demands will evolve as well. Fractional executives provide the flexibility to scale up or down involvement based on the company’s needs. For example, many small and medium-sized businesses (SMBs) initially hire a small number of executives to address the challenges at hand. Over time, that relationship often moves into a more consultative role, helping the business remain agile during periods of growth.
According to many participants at a recent national gathering of fractional executives, their biggest advantage is their ability to integrate into the business like a full-time team member. Chris Taylor, Fractional CFO, explains: “I share accountability with management on finances. That’s the difference between me and a consultant. I’m there with management.” Similarly, Steve Margerin, Fractional Chief Revenue Officer, said: He describes the fractional model as “removing all departmental burden from the CEO, giving teams more time to focus on other priorities.” ”
Where can I find a Fractional Executive?
If your business is at a stage where growth is important but you have limited resources, a fractional executive may be the right solution. But where do you find these few executives?
As of mid-2024, more than 110,000 people on LinkedIn identify as fractional leaders, providing part-time expertise in core business functions such as marketing, finance, IT, and human resources. To explore this option, start by viewing the profiles that meet your criteria and get an idea of the different profiles that offer splitting services. It is important to reach out for information and have a good conversation about the possibility of partial involvement. Once you have identified potential candidates, the next step is to ensure they are a good fit for your business needs.
To facilitate this process, several intermediary organizations have emerged that focus on matching small businesses with specialized fractional talent. For example, in the fractional sales leadership space, Vendux LLC manages a roster of approximately 900 fractional sales leaders in the United States and Canada. Every founder or CEO knows someone in sales, but the question is whether that person is available as some executive, and more importantly, whether that person is the best possible fit. is. Vendux co-founder Henning Schwinum explains: We vetted these experts to give us a detailed understanding of what they’ve done in the past and the sales scenarios they’ve managed. In fractional roles where time is limited and pressure is high to solve specific problems, fractional executives can look the founder or CEO in the eye and confidently say, “We’ve done this before.” It is important to be able to say that. Similar products, deal structures, or sales cycles. ”
Similarly, fractional brokerage services exist in the field of outside general counsel services, such as Frost Brown Todd OGC, as well as in the technology and financial sectors.
Make the partial model work
Once you have found the right fractional talent, it is important to work with the fractional executives to make the fractional model work effectively. Mismatched goals and expectations can derail a relationship. As Fractional CMO Megan Doberstein explains, it’s important to make sure the goals your clients set are realistic. If there is a large gap between the client’s expectations and what can realistically be achieved, and the gap cannot be closed, the partnership is unlikely to be successful. Fractional CFO Chris Taylor emphasizes the importance of shared learning and collaboration. For a partial relationship to be successful, it needs to feel like a collaboration, not just a transactional exchange. Ultimately, success comes from a shared commitment to solving client challenges and aligning expectations from the beginning.
Whether it’s driving growth, expanding operations, or providing strategic leadership, fractional executives can be an option to help small businesses navigate today’s competitive environment. We provide the expertise and flexibility to help businesses move quickly and make informed decisions that lead to success.
