The Fractional Advantage For Small to Mid-Market Businesses
In a world of accelerating technological change, constantly evolving business landscapes, and external pressures, companies are beginning to realize that the traditional workforce, consisting of primarily full-time in-house employees, is constraining their ability to hire for critical skill sets, keep pace, innovate, and grow.
Luckily, the market for fractional talent — flexible, seasoned, or accomplished C-suite leaders who offer vast experience and expertise for a “fraction” of full-time work — has grown significantly as business owners and leaders find ways to affordably access top talent in this unprecedentedly tight labor market to accelerate their businesses and execute strategic objectives. We are seeing increased understanding and adoption by small to mid-market companies who value the opportunity to compete and grow, despite having smaller resources and budgets than larger companies.
Fractional services “level the playing field” for small to mid-sized companies that notoriously have trouble competing against larger companies and well-known, established brands for top executive talent. Plus, the workforce perceptions and needs are changing simultaneously as many high-level executives gravitate toward fractional executive work for many reasons, including the opportunity to work on varied projects across industries and leverage their different skill sets, and the ability to make a significant positive impact on the company. Ultimately, it is a win-win, mutually beneficial arrangement for both parties.
In this blog, we will explore the benefits of utilizing a fractional executive to access specialized knowledge on an as-needed basis. Additionally, we will delve into how RVR can assist clients in recognizing when and where they can benefit from fractional services to address skill gaps or drive strategic goals with expert leadership.
Benefit from deep expertise without long-term commitments or high costs
Small to mid-market businesses traditionally find it impractical or unaffordable to have a full-time team of C-suite executives or specialized talent. They need more resources, budget, and tools to attract and access top talent with in-demand skills and can’t compete with more established companies with deep pockets.
Fortunately, for small to mid-market companies, the world of work is evolving, and savvy companies are shifting from the traditional workforce toward a non-traditional blended workforce model. They’re hiring a blend of full-time employees and fractional executives, freelancers, and consultants to meet their company objectives better, access talent with emerging skills, and manage costs. Moreover, more executive leaders and specialists are now opting to work independently in consulting, freelance, and fractional roles. The blended workforce is a successful collaboration that meets the needs of both the talent and the companies they serve.
Fractional leaders offer fresh perspectives and new ways of thinking to overcome tough challenges and accelerate growth. Additionally, the fractional model instills confidence that the selected individual will adapt quickly, become productive sooner, and work independently and efficiently.
At RVR, we provide companies access to experienced C-level executives and functional leaders — including CFOs, COOs, CMOs, CROs, CSOs, CHROs. These are collectively called fractional CXOs.
Our fractional executive leadership services allow you to access the knowledge and skills of an experienced professional without the fixed costs and inflexibility of hiring a full-time employee. Whether you’re a company that needs to fill a leadership or skill gap, create and execute a strategy, or accelerate progress on strategic initiatives, you can significantly benefit from engaging our fractional executives.
Why Companies Choose Fractional Executives
Save costs and get a strong ROI. Finding top-level executives for your company can be costly, lengthy, and risky. However, employing fractional executives can be a more economical option that provides flexibility, fills skill gaps, and avoids the limitations of full-time employees. Fractional executives typically lend their expertise on an ongoing basis to help businesses achieve their strategic objectives — other times, for specific projects or initiatives as needed. At RVR, we acknowledge the difficulties business owners, CEOs, and leadership teams face in competing, growing, and scaling their businesses. We understand the importance of having experienced executives with specialized knowledge and skills available at the right time to contribute quickly and make an impact.
The fractional model offers many advantages, and the value of services and return on investment (ROI) are among the most obvious. The cost of hiring a full-time executive is often high due to the salary, benefits, and other compensation involved. Typically, an owner can save 40-60% by hiring a fractional executive (CXO) instead of a full-time executive, eliminating the costs of long-term commitments, high-end salaries, employer taxes, and the benefits and perks that come with full-time roles.
Enhance financial capabilities. The demand for fractional finance executives is rising as entrepreneurial-minded owners and CEOs seek to enhance their financial capabilities, accelerate growth, install systems, and raise capital, particularly in CFO and Controller positions. Fractional CFOs can assist companies with cash-flow management, financial planning and analysis (FP&A), scenario modeling, capital budgeting, obtaining debt and equity financing, and providing guidance to the CEO and the board of directors regarding the overall strategic direction of the business.
They may also supervise employees and oversee the finance department’s operations in certain situations. Some companies opt to hire fractional talent to serve as their Controllers. This tactical role usually entails managing daily accounting tasks, creating and evaluating financial statements and bank reconciliations, and providing prompt financial reports and analyses to help inform strong decision-making.
Make use of a customized approach. Fractional talent is also strategically utilized in other C-suite and leadership positions across the enterprise. For instance, owners and founders of small to mid-market businesses often find themselves leading the sales initiatives and managing a small sales team. However, they need more formal sales management expertise and structure yet need to be larger or better positioned to justify the expense of a full-time seasoned sales leader.
Fractional sales leaders can provide the necessary expertise, leadership, and tools to drive sales initiatives by creating sales plans and playbooks, managing the team and offering one-on-one coaching, establishing accountability systems, and utilizing CRM systems to gain visibility into sales activities and pipelines for accurate forecasting. By doing so, fractional sales leaders help ease the burden off the owner or leader, enabling them to focus on other strategic business aspects.
Another example is small to mid-market companies are particularly vulnerable to cybersecurity concerns due to inadequate infrastructure. To address these challenges, they can hire a Fractional Chief Security Officer (CSO) or Chief Information Security Officer (CISO) to oversee IT security measures, protect IT environments and data, establish security protocols, enforce policies, and develop disaster response plans.
At RVR, we offer clients the option of engaging one or more fractional leaders or using our SWAT team of cross-functional experts to address overlapping needs. We have an extensive network of strategic executives with hands-on experience in various areas able to add value to your organization.
Lead and grow your business with confidence. As a successful owner or CEO, it’s crucial to acknowledge when help is needed, how to obtain it, and how to identify growth opportunities. However, managing hectic schedules and juggling daily operations can keep you occupied with the day-to-day workings of the business, which can hinder your ability to focus on long-term strategies to address challenges or seize strategic opportunities.
Knowing that you don’t have to face business challenges alone and that there is another option besides searching for and hiring a full-time leader can bring you peace of mind. You can lean on experienced fractional “operating partners” that come alongside you for a specified duration to help you solve challenges in any aspect of your business and take it to the next level. These “operating partners” have the experience to support strategy and implement hands-on tactics, like their permanent counterparts, filling a leadership or strategic role for a “fraction” of full-time work.
At RVR, we understand the complexities that entrepreneurial leaders face in managing day-to-day operations and achieving results. Our experts have experience growing, managing, positioning, and selling companies. We provide our clients with the expertise, energy, and speed needed to plan, operationalize, scale, and grow their businesses. With clear objectives, everyone can move forward confidently.
When is the right time to engage in fractional services?
Start-ups, small and mid-market businesses, and even some larger high-growth businesses, and companies in transformation or at an inflection point find tremendous advantages in utilizing fractional executives, unequivocally benefiting from executive-level or specialized expertise without the long-term commitment, expense, or headcount.
Regardless of size or industry, companies are turning to fractional executives to tackle challenges and drive growth. These executives bring cross-industry knowledge, expertise, and flexibility that companies can utilize at any point in a business cycle or respond to changes in the external environment. By hiring a fractional CXO, a company gains agility, focus, accountability, and discipline, which can help keep the company on track, mitigate risk, and accelerate progress.
Are you interested in access to C-Suite and specialized expertise at a fraction of the cost to optimize your business? Reach out to us at 407-677-0400 or email info@rvrteam.com to schedule a no-obligation discovery call.
By: Karen Turner, Principal of RVR Consulting Group
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RVR Consulting Group provides your company with resources to support your vision and generate faster returns. By operating from both a strategic and tactical position, we protect clients during critical periods of uncertainty. Our services include advising, talent acquisition, sourcing fractional employees, exit planning, and selling your business. Regardless of your challenges, our firm’s experience is structured to make the road to your objectives faster, simpler, and more profitable. Our goal is simple: help you maximize the value of your business.
We are motivated to foster growth and develop opportunities for companies and their internal staff. Those economic impacts transcend into communities when our clients succeed and have invaluable, lasting effects.
For more information, visit https://rvrteam.com/contact/
