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Small and medium-sized businesses (SMBs) often face unique challenges. Whether it’s scaling operations, managing cash flow, or finding specialized talent, business owners frequently need expert guidance to move forward. Senior talent, in the form of fractional executives, offer a potential solution, allowing businesses to tap into high-level expertise on a flexible, part-time basis. Hiring fractional talent can be the catalyst that SMBs need to break through growth plateaus and scale efficiently without the overhead of full-time hires.
What is a fractional executive?
A fractional executive is an experienced professional hired part-time to lead specific areas of a business. This arrangement allows business owners to access expertise as needed, offering flexibility in resource management. Fractional executives are often brought in with a specific growth mandate and provide deep expertise in their area of specialization.
As businesses grow, leadership demands evolve. Fractional executives offer the flexibility to scale their involvement up or down based on the company’s needs. For example, many small and medium-sized businesses (SMBs) initially engage fractional executives to tackle immediate challenges. Over time, the relationship often shifts to 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 greatest advantage is their ability to integrate into the business like a full-time team member. Chris Taylor, a fractional CFO, explains: ‘I share accountability with the leadership team on finances. This is what distinguishes me from a consultant—I’m there with the leadership team.’ Similarly, Steve Margerin, a fractional Chief Revenue Officer, describes the fractional model as ‘taking the entire burden of a function off the CEO,’ allowing the team more time to focus on other priorities.”
Where to find fractional executives?
If your business is at a stage where growth is critical but resources are limited, fractional executives could be the right solution. But where might these fractional executives be found?
As of mid-2024, over 110,000 people on LinkedIn identify as fractional leaders, offering their expertise in core business functions such as marketing, finance, IT, and human resources on a part-time basis. To explore this option, you can start by viewing profiles that meet your criteria to get an idea about the different profiles offering fractional services. Reaching out for informational discussions and having the right conversations about a possible fractional engagement is key. Once you identify potential candidates, the next step is ensuring they are the right fit for your business needs.
To facilitate this process, several intermediary organizations have emerged that focus on matching SMBs with specialized fractional talent. In the domain of fractional sales leadership, for example, Vendux LLC maintains a roster of nearly 900 fractional sales leader profiles across the US and Canada. While every founder or CEO knows someone in sales, the question is whether that person is available as a fractional executive and, more importantly, if they are the best possible fit. Vendux Co-founder Henning Schwinum explains: We’ve vetted these professionals to understand in great detail what they’ve done in the past and the sales scenarios they’ve managed. In fractional roles, where time is limited and the pressure to solve a specific problem is high, it’s crucial that the fractional executive can look the founder or CEO in the eye and confidently say, “I’ve done this before”—whether it was a similar product, deal structure, or sales cycle.”
Likewise, fractional intermediary services also exist in the domain of outside general counsel services, such as Frost Brown Todd OGC, and in the technology and financial domains.
Making the fractional model work
Once you have found the appropriate fractional talent, alignment with the fractional executive is critical to make the fractional model work effectively. Misalignment in goals or expectations can derail the relationship. As Megan Doberstein, fractional CMO, explains, it’s important to ensure that the goals set by the client are realistic. If there’s a significant gap between what the client expects and what can realistically be achieved, and if that gap cannot be bridged, the partnership is unlikely to succeed. Chris Taylor, fractional CFO, emphasizes the importance of shared learning and collaboration. A successful fractional relationship should feel like a joint effort, not merely a transactional exchange. Ultimately, success comes from a shared commitment to solving the client’s challenges and aligning expectations from the start.
Whether it’s driving growth, scaling operations, or providing strategic leadership, fractional executives could be an option to help small and medium-sized businesses navigate today’s competitive environment. By providing specialized expertise and flexibility, they can enable businesses to move quickly and make informed decisions that drive success.