When starting a business, the primary focus is always on making it successful and profitable. A CEO will try everything in their power to achieve this goal as quickly as possible, but it can be challenging to do it on your own. That's why many startups are turning to fractional executives. Fractional executives are experienced and seasoned professionals who provide advisory services to startups on a part-time or as-needed basis. These executives often have robust professional experiences, so they are well-rounded and can help guide your startup in the right direction. In this blog post, we discuss why it is essential to consider hiring fractional executives for your startup, including fractional CMOs, CFOs, and COOs.
Expertise in the Field
The first reason why you should hire a fractional executive is their expertise in the field. Fractional executives have a broad range of skills, and they have knowledge of the different aspects of running a business. A fractional CMO will provide your business with marketing strategies that can help it succeed in a competitive market. A fractional CFO will help with financial strategy and advise on financial decisions to make. Fractional COOs will help with the day-to-day operations of the business. These executives have worked for multiple clients and have seen different business models, which gives them experience in problem-solving that startups may not have.
Fractional executives are cost-effective, and this is one reason why startups should consider working with them. Hiring a full-time executive can be expensive, and for a startup that may be struggling financially, a full-time executive may not be a feasible option. Fractional executives provide their services on a part-time basis, and this can help the startup save money. Additionally, these executives do not expect hefty compensation packages, such as health insurance and retirement benefits, like a full-time executive would because they work as contractors and freelancers.
Flexibility and Availability
Another reason why working with fractional executives is essential is their flexibility and availability. As startups grow, they need more executives, and having a fractional executive is useful because they can increase or decrease their time commitment as per demand. These executives are available when required, and this is beneficial because startups can have their concerns addressed immediately.
Minimizes the Risks
Working with fractional executives helps startups minimize risks. Fractional executives have dealt with similar businesses, and they have a lot more experience. Given their experience, they can spot shortcomings, threats, and risks that a startup with lesser experience might not be able to recognize. These executives know the common mistakes that startups make, and they can provide solutions and implement safeguards to mitigate the risks.
Access to a Network of Industry Professionals
Finally, fractional executives can give your startup access to their network of industry professionals. The fractional executives have worked with other clients and have met a variety of professionals in their line of work. These professionals can sometimes help the startup with some of their specialized needs, such as legal, accounting, and marketing. Working with fractional executives is an excellent way to expand your network, and this can be beneficial for your startup in the long run.
In summary, working with fractional executives is a strategic move for startups, especially those with limited resources. These executives are experienced and provide their services on a part-time basis, making it cost-effective for startups. They have the expertise, flexibility, and availability to understand your needs and tailor their skills and services around them. Working with these executives can minimize risks and provide access to a network of professionals in different fields. Consider hiring fractional executives when starting your business, including fractional CMOs, CFOs, and COOs, as they can help improve your startup's growth trajectory.
Hilary Johnson loves nothing more than helping her clients experience a joyful transformation in their businesses. Affectionately dubbed the “business whisperer,” she’s adept at helping her clients get to the root cause of challenges in their business and then creating an actionable, easeful plan to create change. She is the founder & CEO of Hatch Tribe and Hatch & Co Consulting, where she works as a Business Growth & Leadership Coach.