The Power of Fractional: Scaling Your Startup with Expert Part-Time Talent
As the number of start ups continues to increase, the term “fractional” has become increasingly popular in the entrepreneur sphere of influence. In simple terms, it means seasoned individuals or companies serving an integral business function within a company on a part time basis at a significantly lower cost than hiring a high caliber individual to fill the position. The roles can be at a director level or mid-management level positions depending upon the needs of your business. Are you looking for a mentor who can help you navigate critical business decisions? Or someone who will act on your brand’s behalf to execute crucial activities while you focus on your brand direction? Before deciding which route to go, conduct a self-analysis of yourself and your brand. Even though these types of roles are temporary they will have a significant impact on your future.
SELF-ANALYSIS
We have put together a suggested list to help navigate the self-analysis process. Some of the questions below may seem a bit harsh; but as a founder of a new brand, it is important that you are brutally honest as it will help develop a framework for your future. As much as we would like, we are not GREAT at everything. Humans are built with differing skill sets. It’s just reality. We also suggest that you tap some of your closest friends and get their thoughts on these questions. We have experienced in our lives at one time or another, what we “think” we are good at may not be reality.
What are the core strengths that can be attributed to your success over your career?
What are those tasks that you perform adequately; but would rather not have to deal with them in the perfect world?
Are you a good planner (meaning do you complete projects in advance of the due date or are you scrambling at the last minute to get it done ON the due date?)
Do you take feedback well?
Do you tend to stay within your personal budget? Do you have a process to monitor your expenditures to ensure you do not overspend?
TYPES OF FRACTIONAL SERVICES
As briefly mentioned above, there are a couple routes you can take when considering fractional support. The direction you take depends upon your current resources and what you want to accomplish from these services.
MENTOR (CONSULTING) SERVICES
Hiring a fractional consultant whatever the discipline is an excellent choice if you are looking to take the next step forward in your business; but unsure of the best way to get there. Seasoned experts can help create a roadmap based on your current business situation, future objectives, and timeline expectations. Once the roadmap is created, this expert will establish a cadence for meetings (in person or virtual) to review performance to your roadmap, discuss other critical matters where you need guidance, and help you pivot quickly. Following each meeting they will prepare a brief on the discussion and outline the steps you need to take to stay on track.
Many of these experts have worked for medium to large companies for decades and bring a wealth of knowledge to optimize revenue and reduce costly expenses maximizing your brand’s profitability. It is imperative that you prep in advance for each meeting. Review your task list from the last meeting. Be prepared to speak about your actions taken since the last meeting and any questions that are preventing the completion of these actions. Keep a running list between meetings of any other situations where you need assistance. We cannot emphasize enough that you need to be very present during these meetings as these meetings are invaluable to your success. The mentor is an excellent option if you are adequately handling all your daily tasks or alternatively you have a support person who is assisting you.
FRACTIONAL MANAGEMENT SUPPORT SERVICES
A support service option is a great way to hire temporary staff without having the burden of employing full-time staff in the early stages of your brand. These highly skilled professionals have years of experience and can quickly get up to speed on your brand to provide immediate relief to your pain points. In a short few months, they can implement processes to help you become more efficient and cost effective in your future decision making.
As the brand owner, you will oversee, direct, and approve all decisions impacting the business. Essentially, these individuals serve as your staff taking over the nuts and bolts getting projects completed on schedule and on or below budget. By using seasoned experts in the areas of marketing, finance, product development and operations, they will professionally represent your brand, freeing up your time to focus on the bigger picture.
Should you decide to pursue this route for professional support staff, it is highly recommended that you set up email addresses that reflect your business domain name. Since these individuals will be working with your vendors or partners, the presentation of having a solid team speaks volumes. It does not necessarily mean you need to use their name in the email address. Instead, use generic email addresses such as marketing@XXX.com or operations@XXX.com.
The duration and cost would be based on your growth and budget. Consider trained professionals can help you achieve your objectives quicker and eliminate costly mistakes allowing your business to reach new levels faster. When the timing is right to hire your own in-house staff, fractional support staff can train your new hires during the transition.
FRACTIONAL HYBRID
Fractional hybrid services are a blend of the mentor and the support service. As a leader of a new brand, you have a skillset that got you to a brand launch and the initial stages of your brand in the marketplace. As the brand grows, you need to expand your understanding of other aspects of the business as you are ultimately responsible for its success. By choosing a hybrid option, you can get mentored in those areas where you lack experience while having some support services to handle the tasks that take too much time and energy for you to focus on the future. With the combination of both types of services, you essentially are getting on-the-job training to be a great founder and CEO of your brand.
Whatever option you choose, it is a model worth considering in the early stages of your business. Review what a full-time salaried employee(s) with benefits would cost each year to handle certain areas of the business (indeed or other job related sites can give you an idea of salary ranges) This is a great starting point for initial discussions with companies offering fractional services. In some cases, the cost may be much lower than you think without having to worry about the responsibility of financially supporting staff members.
If you are contemplating fractional services, reach out to us for a free 30-minute introductory call.