Why You Should Consider A Fractional Firm
Companies face continual challenges in an ever-evolving business environment, making cost-effective growth solutions more important than ever. Fractional resources are a key to achieving this, as they allow businesses to access specialized expertise tailored to their unique needs without the financial burden of full-time roles. Fractional resources allow businesses to remain agile, seize opportunities, and stay ahead of the competition. And the reality for so many businesses as they scale is they need a little of a lot of things, not a lot of just one thing, or a defined role. So how do you select a resource effectively?
Advantages of a Fractional Firm
There are fractional firms, and fractional individuals. In many cases the fractional firm brings with it significant advantages.
Depth and Breadth – With a fractional person, you are limited by their knowledge and experience. A fractional firm provides depth and breadth of skill, expertise, experience and execution under one roof.
Ability to Evolve – As businesses evolve, so do the resources they need. A skilled fractional firm can evolve with you. This means if your needs today shift in 6 months, you don’t have to potentially start over, onboarding new resources and losing valuable time and investment.
Continuity – Many businesses miss out when a fractional individual takes a full-time role with another business. A skilled firm offers continuity of service, even in the shorter term such as a long vacation or unplanned attrition. There is peace of mind in knowing you are covered and can be confident in decisions ahead.
Bandwidth – If a short-term project arises, like an acquisition or a new initiative, it can be very difficult for a fractional individual to accommodate. Not to mention the challenges presented by an ever-evolving business landscape. With a singular resource, limited to their individual expertise and time, you may not be able to address all of the issues that arise needed to impact your business. In contrast, a strong fractional firm can toggle bandwidth as needed to respond to evolving magnitude of need and complexity.
Common Issues
Clarity of need – Do you know what you are looking for? Let’s use the example of a business seeking a fractional CFO. What exactly does that mean? Ten business owners will give ten different answers. Are you looking for accounting review and oversight or to get into complex forecasting, growth financing and M&A? Get granular on the deliverables you need or the problems you are trying to address with the addition of a resource. Clearly define the outcomes and deliverables you are seeking. Use that to guide your process in assessing whether you have the right resource. Regardless of what you label them, or they label themselves, can you articulate to them what success looks like? And then, can they convince you they are the right partner in the success of those specific outcomes and deliverables?
Clarity of expectations – A fractional resource is by definition not in your business full time. So, how do you work together? Is there a set schedule of any kind. What are the communication protocols. How do you ensure alignment and understanding? And make sure you revisit this over time as the business and the relationship evolves.
Organizational openness to change – Odds are you are hiring a resource to leverage skill to take to you another level. If you don’t take advantage of fresh perspectives and innovative solutions, you are limiting effectiveness. Be open to new ideas, challenging past norms. Better yet openly seek them out, and ensure your team is on board.
What to look for in hiring a fractional resource
Culture – Ensure a cultural fit. Just like any hire, the fractional resource needs to align with your organization, your values and how you operate. And ensure they ask questions and truly understand your business.
Process – Understand their process. Do they have an established process for how they engage with you? Know how they will obtain context when not there on the ground every day. How will they communicate with you? How do they measure success? Breakdowns in process or lack thereof can quickly sour a relationship, even more so with a fractional resource where you don’t have their full capacity at your disposal.
Experience – What are their qualifications/experience as a fractional resource? Do they know how to juggle clients? It takes structure and intentionality to operate fractionally. What happens when two clients have pressing deadlines? What happens when they lose a big client or pick one up? What happens to your business based on the other clients they serve? Get answers to these questions before you make a decision.
A fractional resource offers flexible skills and experience without the commitment of long-term internal hires, making it a desirable option for evolving businesses. A fractional firm offers substantial benefits compared to utilizing an individual resource. Carefully assess your needs and find the right fit. Grow boldly!
