Fractional C-suite executives, CEOS, CMOs, CFOs, COOs and others, are highly skilled professionals in tactical fields like marketing operations, sales, finance, and leadership. Instead of working full-time for a single business, they offer their services on a fractional basis, simultaneously working with three, four, or even five different businesses at a given time. A Fractional Business Partner operates within the business, focusing on its growth and scalability rather than performing specific tasks. Unlike regular employees, a fractional partner doesn’t appear on the organizational chart and isn’t directly engaged in day-to-day operations. Instead, their primary role revolves around preparing the business for expansion.

Does a $1-5M non-tech business need a Fractional C-Suite executive?

A non-tech business with revenue between one and five million is typically owner-operated, meaning the owner is the primary operator and doesn't require much help with execution. If a business is generating between one and five million dollars, something is working. However, essential functions can prevent it from scaling. Some of the most common struggles include building a leadership team, developing a multi-million dollar growth strategy (that encompasses more than just marketing, sales, and finances), and building systems to ensure professional execution on a weekly basis are some of the most common struggles.

Fractional C-Suite executives that are brought in too early in the process are often met with a lack of necessary structure to do their job effectively. Consequently, they spend most of their time and energy figuring out the strategy and building systems, which is not their core competency or what they were hired to do. This can lead to a significant waste of time and money for the business owner. It is much more effective to first bring in a fractional business partner to professionalize the business and develop the system, strategy, and direction. Then, hire a fractional executive to fill a specific function required by the plan that has been developed.

If you’re an owner of a growth-oriented non-tech business with revenues between one and five million, continue reading to understand each type of Fractional C-Suite executive and why engaging with a Fractional Business Partner first is the best way to go.

What is a Fractional CMO? What do they do?

Fractional CMOs are seasoned marketers who are responsible for building digital and traditional marketing strategies and managing communication channels such as websites, social media, and print advertising, among others. A Fractional CMO is ultimately responsible for spreading awareness of the business and what it has to offer and oversees the creation of marketing collateral such as PDFs, decks, blog posts, and other customer-facing content.

Hiring a Fractional CMO without a clear strategy is a waste of money

Many businesses with revenue between one to five million dollars have achieved success. However, they often lack methodical processes and fail to systemize their successes. This means they may not have clear strategic components such as identifying their ideal customer profile, differentiation points, and value proposition. While they may have considered these factors, they may not have formalized them into a strategy.

When a Fractional Chief Marketing Officer is brought in to help, they may need to spend a lot of time figuring out these key strategic components, which should have come from the top-level business owner. These strategic questions should be connected to all other parts of the business, such as operations, finance, and sales, and cannot be managed solely by the marketing department.

A Fractional Business Partner can help by answering these strategic questions as a team, gaining buy-in and clarification from the entire team. Once these questions are answered, a Fractional CMO can be effective in their role, catering to the ideal customer profile and differentiation points that have been clearly established. This approach allows the CMO to focus on executing the tactics that they were hired for, rather than spending time trying to figure out the strategy.

What is a Fractional CFO? What do they do?

Fractional CFOs are in charge of the accounting and administrative side of the business, managing finances, bank accounts, book closing, payments, vendors, and personnel. They also project and create analyses for the future, providing clarity on the business's direction and whether they have the necessary resources to achieve their goals. One of the challenges Fractional CFOs face when working with $1-5M businesses is that their role is more than just closing the books. They work to ensure that the business manages its resources appropriately to achieve its objectives. However, many of these businesses are unclear on their objectives and how to achieve them, as well as what immediate steps they need to take. Without clarity on these matters, Fractional CFOs cannot fully utilize their capabilities. They may end up doing their job superficially, and the business won't benefit from their full abilities.

What is a fractional COO, and what do they do?

A Fractional COO, also known as a Chief Operating Officer, is primarily responsible for managing a business's daily operations. When working in a fractional capacity, a COO will streamline processes, increase efficiency, manage employees and production, and sometimes even interact with clients. Their main goal is to ensure that the product is produced to a high degree of quality once a client is engaged.

Is a Fractional Integrator the same as a Fractional COO?

A Fractional Integrator is a modified version of a fractional COO, with experience implementing with the EOS framework. The term “Integrator” is taken from EOS® (Entrepreneurial Operating System). As the “glue” responsible for the day-to-day execution of the business, Fractional Integrators assume many responsibilities akin to Fractional COOs who know how to work with the EOS framework. They typically run the Level 10™ meeting (leadership team meeting) and coordinate the daily activities of the business, similar to a Fractional COO.

Ultimately, Fractional COOs or Integrators are more effective after a Fractional Business Partner develops the growth strategy. A Fractional Business Partner manages the process for implementing new standards and procedures that ensure business growth, whereas Fractional COOs and Fractional Integrators manage what simply exists. They do not provide guidance in developing the appropriate systems in order to scale. When a Fractional COO joins a business, the focus will often be making existing operations more efficient and overcoming current challenges. However, the current operation may not be the right one suited for growth. Without first developing a growth strategy and understanding what needs to be built, where the gaps are, and where the business wants to be, they may simply manage the existing status quo instead of helping the business build the right systems to achieve their financial and business objectives.

What are Fractional CEOs? What do they do?

Fractional CEOs are similar to part-time CEOs and can be hired on an hourly or retainer basis to help manage a business. Like regular CEOs, Fractional CEOs are in charge of different functions such as marketing, sales, and operations, as well as being responsible for hiring staff and creating strategic plans. Fractional CEOs are a great solution for businesses that run automatically and require light-touch experience but cannot afford to hire a full-time CEO.

There is a difference between a Fractional Partner and a Fractional CEO. The first difference is that a Fractional Partner does not work in the business or manage its employees. Instead, they work alongside small business owners, empower the existing management team, and focus on developing the growth strategy and scaling the business. They do not replace the CEO or owner. Secondly, a Fractional Business Partner is removed from the daily execution of the business, which allows them to provide unbiased advice and better strategic planning.

Lastly, a Fractional Partner acts like an equity partner rather than an employee, making decisions as a true partner in the business. Their focus is on the business as an asset rather than the daily execution of tasks.

Different businesses require different fractional help

Fractional C-Suite executives are great solutions for businesses that need help with specific functions like marketing, sales, operations, or finance. However, growth-stage businesses should focus on building their business first before working with these seasoned executives. A Fractional Business Partner helps build the team, develops strategy, and designs systems. Engaging with a Fractional Business Partner before a Fractional C-Suite executive makes sense for all parties, as the fractional executives will be able to focus on executing their tactical expertise.

If you are a non-tech business looking to grow and scale, let's connect and see if I can provide you with value while ensuring that your business is strong before bringing in these fractional professionals.

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