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Why Are Fractional Executives the Best Investment for Your Business?

Are you contemplating recruiting a fractional executive for your business? Well, if you are considering it, you are headed in the right direction. It is one of the most advantageous investments you can make for your business.


Small to medium-sized enterprises (SMEs) and start-ups can face many challenges and struggle to thrive in the fiercely competitive global market. However, with the assistance of fractional executives, these firms get a genuine opportunity to succeed without the prohibitive cost of hiring full-time personnel.


Fractional Executives

What is a fractional executive?


A fractional executive is an experienced professional a business employs to assume an executive position. Like their full-time counterparts, the fractional executive can assume senior management positions and execute crucial decision-making tasks. However, the fractional executive works part-time or on-demand.



This type of relationship is an optimal choice for organizations that lack the resources to employ a full-time executive or do not require one. Many companies choose fractional executives as a cost-effective solution to get high-quality business professionals. Fractional executives are typically seasoned professionals with extensive knowledge in the sector or a critical business function, thus making them precious assets.


Additionally, companies can engage a fractional executive’s services for a specific project, such as a marketing initiative, and terminate the engagement when the project concludes. This allows companies to maintain quality without the considerable cost of a full-time resource.


Why are Fractional Executives Key for Your Businesses?


If you own an SME or start-up business, consider recruiting a fractional executive. Navigating challenging periods at any company can be stressful and nerve-racking. During these periods, companies can benefit from the counsel of a specialist.


Below are some of the reasons why companies should consider engaging a fractional executive.


Business Growth

To maintain your company’s expansion, it may be necessary to recruit individuals who possess key expertise and meet the specific requirements you want. Given their extensive exposure to various scenarios, fractional executives can provide guidance and counsel to help steer you on the correct path.


Budget

SMEs and start-ups are particularly cautious about their spending. Financial limitations hinder firms from recruiting highly skilled industry experts, although this does not imply that SMEs should entirely abandon the notion. SMEs can bring on fractional executives to provide their insights and expertise for a specific period instead of hiring a full-time employee.


What Do You Think Is the Biggest Benefit of Hiring a Fractional Executive?

  • Business Growth

  • Cost-Effectiveness

  • Strategic Planning

  • Access to Specific Expertise



Strategic Approach

Engaging a fractional executive can assist you in formulating a meticulously thought-out strategy. These professionals can examine all aspects of your organization and perform extensive analysis to develop a strategic plan. An effective strategy is crucial for achieving your goals by identifying and addressing opportunities and problem areas.


Specific Expertise

You may have multiple people on your team; however, they may only possess some of the talents you need. For example, your current team lacks the technological proficiency to develop a new product. A highly effective course of action would be to employ a fractional Chief Technology Officer (CTO) for example. This CTO can collaborate with you to design a customized technology plan for your business.


Coach, Mentor, Right Hand

It’s lonely at the top.  Making critical decisions is nerve-racking. Successful leaders have experienced and objective partners to bounce issues off and they collaborate with people who are smarter than themselves. Acquiring the services of an expert can help your entire team thrive. The right fractional executive can lead, manage, coach, and train everyone from the leadership team to the staff.


Expansion

To achieve scalable business expansion, it is imperative to seek the assistance of a knowledgeable professional. SMEs and start-ups cannot afford a pricey full-time seasoned executive, so their only alternative is to hire a fractional executive. Engaging a fractional executive will equip your firm with the necessary resources to facilitate growth and provide valuable perspectives to ensure the sustainability of that growth.


Stable Financial Transitions

While it is common for organizations to see fluctuations in their finances, the key to success is your ability to navigate these changes effectively. Employing fractional executives can assist here as well. For example, when an organization is performing poorly, it can enlist the services of a fractional CFO to develop a strategy to restore financial stability.


A Less Risky Solution

The departure of senior staff can place business owners in a highly challenging predicament. Recruiting new personnel with the right experience is difficult, time-consuming, and risky. Choosing a fractional executive is a practical solution. It facilitates the seamless functioning of a business by alleviating the risk associated with losing a key employee.


Long-Term Results

While fractional executives may have a short tenure with your company, they undoubtedly provide lasting advantages. Fractional executives can help establish a practical and effective strategy for your organization, which can benefit your company after the executive ceases working for you.



 

Bob Fiorella, founder of FirstCxO
CEO and Founder of First CxO. 

Bob Fiorella is a strategic problem solver, M&A advisor, and right-hand man to CEOs and business owners contemplating or dealing with a major change; whether it's restructuring a company, building a finance team, getting a loan, setting the company up for growth, successfully selling the company, etc.  He began his career as an investment banker and worked on several deals including the multibillion-dollar merger of Avery and Dennison.  Over the subsequent two decades, Bob’s career centered around the media, entertainment, packaged goods, wholesale distribution, specialty retail, technology, and software development industries where he took on roles such as SVP Finance, Chief Financial Officer, Chief Operating Officer, Chief Strategy Officer, and independent board member. Bob is the Founder and President of First CxO.  Some of his assignments include being a fractional CFO for a $30mm packaging technology company, a $5mm software development company, and a $25mm e-commerce company.  He is also an advisor to a $500mm franchising company.  Bob holds a BS in Economics from Cornell University and an MBA from UCLA’s Anderson School of Management.  Bob can be reached at 310-422-6858, bob@firstcxo.com.


Bob’s “claim to fame” is appearing on Season 13 of America’s Got Talent as part of the Angel City Chorale. They made it to the Semi-Finals. 

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