There are endless joys that come with being a small business owner or CEO: independence, control, creating employment opportunities for others, and seeing your passion come to life. But leading a company solo, without another executive partner, can be lonely. Not to mention the stress associated with being the main decision-maker for everything from finance to marketing to HR. You may have considered bringing another executive on to help you lead because of those reasons. Unfortunately, the average executive salary for 2021 is $204,000. With some roles requiring around a $300,000 price tag. That doesn’t even include the executive benefits package or expected bonuses!
That level of talent is out of reach for most small businesses or start-ups, where resources can be tight. But what if you could get that same expertise for a fraction of that cost? Well, now you can. Because the future is fractional. Fractional executive, that is. There is now a way to get decades of executive-level experience for less commitment and money. As a small business owner, the fractional executive trend is fantastic news for you and your payroll. If you haven’t heard of the fractional executive trend, think of it as the gig economy for the C-suite.
What is a Fractional Executive?
Fractional executives are perfect for small businesses and startups, or companies that are trying to scale. They help bridge the gap between your need for executive brainpower and your limited resources. It has been said that a fractional executive can provide a time commitment equivalent to 20% to 50% of a full-time executive, at a third of the price. Imagine getting the expertise of a 30+ year industry veteran for a discount.
They exist for every position of the C-suite: CFO, CMO, CIO, CHRO, CTO, COO, and even Chief of Staff. Because there are so many variations of C-level executives, they are often known as “CxOs.” If you’re a small business owner, you’re probably already fulfilling all of these roles on your own.
Fractional, of course, means they aren’t full-time employees. And, instead, are working limited hours each day or week. Or, serving full-time for a shorter period of time. Therefore, they don’t require the retirement benefits or bonuses that a typical executive would. It’s a “pay for what you need” model that is a win-win for everyone.
Another benefit to using a fractional exec is their fresh, outside experience. Most of them are 20 or 30-year subject matter experts and have prior experience of being a full-time executive. They have worked in that type of role in other companies and industries and can apply their learnings to your business. This experience means they can also challenge you to do things differently. And can see new opportunities for growth you may have overlooked, along with other blind spots.
So that’s an overview of how a fractional executive (CxO) may help your organization. Let’s take a look at what this role means for operations, in particular.
How Fractional Leadership Can Transform A Startup
Integrating fractional leadership into your startup can be a game-changer, ensuring agility and strategic prowess. These seasoned professionals enhance decision-making speed, optimize resource use, and provide vital expertise without the overhead of full-time executives.
They focus on specific, short-term goals, aligning teams with the startup’s strategic objectives. By bolstering leadership, fractional executives not only drive efficiency but also support sustainable growth, making them invaluable for startups navigating the complexities of scaling up.
While operations often take center stage for fractional executives, other C-suite roles also offer high-value support for small businesses in growth mode.
The Unique Value of a Fractional CTO
The tech landscape can overwhelm even the most seasoned founders. That’s where a fractional CTO steps in. These experts bring technical leadership without the full-time salary burden.
Here’s how a fractional CTO adds value:
- Shapes your product and IT roadmap for growth
- Prevents costly infrastructure mistakes, like poor cloud migration decisions
- Streamlines engineering workflows for speed and quality
- Brings in cutting-edge tools, including automation and AI
- Flags tech risks before they blow up your budget
With flexible involvement, a fractional CTO ensures your technology stack supports—not hinders—your growth.
What Does a Chief Operating Officer (COO) Actually Handle in a Small Business?
In a small business setting, the COO often acts as the owner’s right hand, keeping day-to-day operations running smoothly so the owner can focus on growth. While the CEO sets the vision, the COO turns it into action by overseeing functions like:
- Sales and marketing operations
- Project and team management
- Human resources and hiring processes
- Administrative workflows and systems
- Strategic planning and implementation
This second-in-command role ensures the internal engine of the business operates efficiently, freeing the owner from being buried in logistics.
As your operations become more streamlined, your financial oversight must also keep pace. This need is where a fractional CFO can make a significant impact.
How a Fractional CFO Supports Startup Financial Management
Managing a growing business’s finances often feels overwhelming. A fractional CFO brings clarity and structure to your cash flow, budgets, and forecasting, without the cost of a full-time hire.
They help you:
- Build clear financial models for decision-making
- Set KPIs and budgets aligned with growth goals
- Guide you through fundraising and investor conversations
- Strengthen credibility with lenders, partners, and board members
In short: a fractional CFO keeps your financial house in order while you focus on scaling the business.
When Should You Use a Fractional COO?
If you’re a small business owner who’s working in your business, but not on your business, it may be time to consider a fractional COO. Cash flow doesn’t support a $200,000+ executive position, so having someone come in at a fraction of the price, for a short period of time, is advantageous.
Here’s when it makes sense to bring in the role:
- You are in growth mode (or, need to be in growth mode)
- Business development has become stagnant or declined
- You need to scale operations
- When you need the partnership of another leader but can’t afford an executive salary
After a Fractional COO comes in and creates a plan to get things running for you, you might get to a place where you can afford a full-time COO in the future. Or, you might be able to maintain the system’s setup yourself.
The same approach applies to your technology choices, where the wrong decision can cost thousands.
How Fractional CTOs Help Dodge Costly Tech Pitfalls
A fractional CTO brings strategic oversight to your tech decisions, so you avoid expensive missteps.
Their impact includes:
- Planning a scalable technology roadmap
- Avoiding “shiny object syndrome” in tool selection
- Mitigating risks tied to cybersecurity and infrastructure
- Embedding efficiency from day one using proven frameworks
Hiring a fractional CTO early helps you avoid painful rework, manage costs, and scale confidently.
How Fractional CPOs Align Procurement With Your Big-Picture Goals
A fractional Chief Procurement Officer (CPO) ensures your sourcing and spending decisions match your long-term goals.
They align procurement with:
- Business strategy—especially during product launches or expansion
- Innovation needs to be sourced by the right partners and vendors
- Strategic partnerships—not just cost cuts, but value-driven deals
- Agility—by bringing in cross-industry insights that help you pivot as needed
Fractional CPOs do more than buy smart. They turn procurement into a strategic advantage.
Once strategic alignment is in place, operational efficiency follows. That’s where best practices make all the difference.
How Do Fractional CPOs Implement Procurement Best Practices and Boost Efficiency?
A fractional CPO modernizes your procurement systems so your dollars go further.
Their approach includes:
- Process optimization—removing waste and tightening workflows
- Tech integration—leveraging tools like SAP or Oracle to automate
- Data-driven sourcing—using analytics to lower costs and boost performance
- Cross-functional collaboration—to align procurement with company-wide goals
- Continuous improvement—ensuring procurement evolves as your business grows
In short, they turn purchasing into a well-oiled machine that fuels—not drains—your operations.
Beyond the Chaos is a Fractional COO
Beyond the Chaos brings 30+ years of experience in operations and project management, serving as a Fractional COO for many clients. We offer decades of operations experience and as small business owners ourselves, we know what’s required to support you, the small business owner. Beyond the Chaos also has a team of consultants and project managers who can continue the work so businesses get full-scale operational support.
Some of the benefits of working with Beyond the Chaos as your Fractional COO include:
- Your location doesn’t matter; we operate virtually.
- You pay a fraction of the cost of a full-time executive.
- We scale with you – you only pay for what you need, with no long-term commitment.
Contact us today to find out which fraction is right for you with a consultation.
Frequently Asked Questions
How can a fractional CMO steer a company toward long-term stability?
They offer a strategic advantage for growing companies concerned with cost efficiency and adaptability. This role provides high-level marketing expertise without the financial burden of a full-time salary. Companies benefit from flexibility, testing a CMO’s fit before making a long-term commitment, and gaining fresh, objective insights that can pivot as market conditions change. Ultimately, this role reduces long-term hiring risks and supports dynamic, responsive marketing strategies that adapt to evolving business needs.
What are the signs that indicate a company needs to hire a fractional CxO?
When a company experiences rapid growth or faces strategic challenges beyond its current leadership’s capacity, it may be time to consider hiring a fractional CxO. This option provides expertise and guidance without the long-term commitment of a full-time executive, ideal for navigating transitional periods or specialized projects.
Signs a Company Needs a Fractional CxO:
- Rapid Growth: Scaling faster than current management can handle.
- Strategic Gaps: Lack of expertise in critical business areas.
- Financial Constraints: Need for senior leadership without the full-time cost.
- Project-Specific Needs: Major projects require specialized leadership.
- Innovation Stagnation: Need for fresh insights to drive innovation.
How Do Fractional CxOs Differ from Other Contingent Workers?
Fractional CxOs are seasoned executives hired on a part-time basis to fill strategic leadership gaps without the long-term commitments associated with full-time positions. This arrangement differentiates them from other contingent workers who typically focus on specific, operational tasks rather than strategic, executive-level leadership. Fractional CxOs bring a blend of high-level oversight and practical execution to drive key initiatives and strategic change within a company. Here are the key differences:
- Strategic Focus: Directly influence company strategy and decision-making.
- Executive Experience: Bring years of high-level leadership experience.
- Part-Time Engagement: Serve in an executive capacity without full-time obligations.
- Impact on Direction: Shape the company’s future, unlike operational contingent workers.