What is a Fractional COO?
If you’ve spent any time around entrepreneurs or business owners lately, you’ve probably heard the term fractional COO tossed around.
Others refer to this role as an integrator of their visionary attitude, as described in the famous business book "Rocket Fuel" by Gino Wickman and Mark Winters.
It sounds fancy, I know.
Since it’s not clear what a “fractional COO” means, it can be a challenge for business owners to know whether they actually need to hire one or not. So, in this blog post, I’ll break down the most common questions I get from business owners looking to hire The Boutique COO as their “fractional COO.”
Let’s go!
Key Questions to Ask When Trying to Decide if Your Business Needs a Fractional Chief Operations Officer
What does a COO do?
A Chief Operating Officer (COO) is the second-in-command in many businesses. While the CEO sets the vision and strategy, the COO ensures the trains run on time. They’re responsible for day-to-day operations, systems, and processes, ensuring the business can actually execute its goals effectively.
Think of the COO as the person who translates big ideas into actionable steps. If a CEO says, “We’re going to double revenue this year,” the COO is the one figuring out how to do that. Tasks can include building systems, hiring staff, or designing KPIs to track and measure progress.
In short, CEOs dream it, and COOs deliver it.
What does “fractional” mean?
Hiring a full-time COO is expensive. We’re talking six figures (often multiple six figures) plus benefits, which puts it out of reach for most small and mid-sized businesses. That’s where the fractional model comes in.
A fractional COO (or a fractional version of any role, for that matter) works with your business part-time or on a contract basis. With a fractional COO, you get access to the same level of strategic thinking and operational expertise as a full-time executive, but at a fraction of the cost.
What does a fractional COO do for a small business?
Fractional COOs help growing companies in several ways.
First, they can help to streamline operations by analyzing what’s slowing you down and putting systems in place that actually work.
They also help track margins, cash flow, and profitability, so you’re not making decisions in the dark, giving you more financial clarity.
A COO often takes the lead on team-related questions, setting clear roles, responsibilities, and reporting structures so that your team knows what success looks like and how to achieve it. They hold you and your team to the goals you’ve set, so progress doesn’t get lost in the daily grind.
Finally, they can also help to accelerate your growth - whether it’s hiring, tech investments, or expanding into new markets, a COO helps map out the how and when.
For many business owners, the biggest value is having someone who can “own” the operations side so they can focus on growth, client relationships, or innovation.
READ MORE: Why Your Growing Business Needs a Fractional COO
Is a fractional COO worth hiring for my business?
Not every business needs one, but there are signs that it might be time.
If you’re growing quickly and feel like you’re constantly putting out fires, and feel like you’re the bottleneck in every decision, those are all very common signs it may be time for an integrator or COO in your business.
Another common sign is that your revenue is solid, but your profitability or cash flow is shaky, and you feel stuck at a certain point in your business.
Often, as a visionary business owner, you have big goals but if you feel like you have no clear roadmap for reaching them, a fractional COO could be the difference between spinning your wheels and making tangible progress.
How much does a fractional COO dedicate to my business if I hire them?
Most fractional COOs work with businesses anywhere from 5 - 40 hours per month, depending on the needs. Some may dive into financial modeling and weekly leadership meetings, while others might focus on documenting processes, hiring, or building dashboards.
The relationship is flexible, which is the point. You get senior-level leadership without committing to a full-time hire.
The role of your fractional COO can also evolve over time, in line with your business's changing needs.
Curious about hiring a Fractional COO for your business?
There you have it! Not so fancy now, right?
Many companies use fractional support as a stepping stone: once you hit a certain size, you may eventually bring on a full-time COO, but the fractional role gets you there faster and with less risk.
A fractional COO is not just an outside consultant. They’re an embedded leader who helps run your business alongside you.
By focusing on operations, systems, and execution, they free you up to focus on what you do best!
If you’re at the stage where your business is too complex for you to manage alone but not yet ready for a six-figure executive hire, a fractional COO can be the bridge.
Interested in hiring me as your fractional COO? Book a free strategy chat to see if we’re a fit!
