Many companies who are growing get to the point where the founders may need some outside experts to help them with new challenges, or just to manage demands on the executive’s time. One solution that business owners are turning to is the use of “fractional executives”.
Fractional executives are professionals in their fields, typically finance, information technology or legal services, who are experts in working with growing businesses. These professionals offer their time to the company, usually at a reduced fee compared to their usual rates, in exchange for a commitment from the company to purchase a block of their time each month.
This is beneficial to both parties. For the company, they get access to expert advice and services from experienced professionals on an “as needed” basis, usually for a monthly fee that is far more affordable than hiring a full-time CFO, IT Director or General Counsel. The company gets a monthly invoice for access to the service provider, and has a cap on the fees that they pay for the services. So there is no surprise in the bill, and the company can get the advice or professional services they need with a phone call or an email.
From the service provider’s perspective, you find that many fractional executives have a great deal of experience in their industry, but may be working with a handful of growing businesses on part-time basis as they ease into retirement. Many of these service providers are happy to offer a discount on their usual fees in exchange for a predictable revenue stream from a small handful of clients. The business gets expert advice, and the service provider does not have to juggle so many client relationships.
If you would like to learn more about fractional executives for your business, and you would like some recommendations for professionals in my business network who are available for these kinds of service arrangements, feel free to give me a call at (315) 877-1741, or email me at firstname.lastname@example.org .