What Is a Fractional COO? Everything You Need to Know Before Hiring One
If you’ve hit that point in your business where growth is happening, opportunities are coming in, and your operations are… kind of held together by wishful thinking and late-night Google Docs, you’re probably wondering whether you need more than just a part-time operations manager. Enter - the fractional COO.
A fractional COO is the bridge that integrates all of your ideas and momentum into concrete action items, and keeps things on track across the company’s operations. They operate like a full-time executive, but you aren’t paying them full time, so you get senior-level operational leadership at a fraction of the cost. In today’s market, fractional leadership is becoming the norm for small and medium-sized businesses.
Here’s what a fractional COO actually does, how they differ from other roles, and how to know if you’re ready for one.
WHAT A FRACTIONAL COO ACTUALLY DOES
A fractional COO is the person who turns your business to be data-driven and run with much tighter systems. They’re responsible for operations, systems and automation, team structure, and using financials to make decisions. Together, these roles make sure your business is ready to scale. They are the perfect person to bring in if you feel like your business is running you instead of the other way around, and if you are wanting to have a resource to whom you can ask all of your financial and operational questions day-to-day.
A fractional COO typically is capable of handling a long list of responsibilities, including but definitely not limited to:
Operational strategy and long-term planning
Team structure, hiring recommendations, and role definitions and KPIs
Systems building and process creation, including automation design
Accountability and performance management
Capacity planning, resource allocation, and forecasting
Profit optimization and financial projections
Turning your ideas into actual execution plans
This is someone building the engine that makes the whole business run, not just an admin or VA.
HOW A FRACTIONAL COO IS DIFFERENT FROM OTHER SUPPORT ROLES
Business owners often assume they need a virtual assistant or a project manager when what they really need is someone to clean up the entire system, not just complete tasks inside of it.
If your biggest issues are your inbox, scheduling, or one-off projects and tasks, you probably don’t need a COO yet - or at least not for that purpose. A VA is the right starting point for those types of tasks, as described in our guide to hiring one.
But, if your pain points look more like inconsistent revenue and lack of financial visibility, unclear team structure and questions about staffing, systems and SOPs (or lack thereof), and how to prioritize your many ideas and goals - that’s COO territory.
THE BENEFITS OF HIRING A FRACTIONAL COO
Hiring a COO, even fractionally, is not a small investment, but the ROI is massive when you pick the right person. Many of our clients double their revenue within their first six months of this kind of operational leadership because the business finally becomes efficient and data-driven.
A fractional COO can help you get your time back, so that you’re no longer the bottleneck for every decision. They can also bring much more clarity and predictability into your day-to-day, helping you to know your numbers, prioritize accordingly, and helping you to forecast revenue and capacity over time.
Signs you’re ready for a COO usually show up long before you say it out loud. If you’ve felt stuck on the same issues over and over, and feel like your business has untapped potential but you’re not sure how to get there - or you simply don’t have the time and bandwidth to dedicate to realizing it - that’s when you should bring in a fractional COO.
WHEN DOES HIRING A FRACTIONAL COO MAKE SENSE?
Most small businesses bring in fractional leadership starting when they’re around $250k-3m revenue, and most times don’t need to phase in a full-time COO until they are close to 8 figures in annual revenue.
Sometimes businesses are profitable when they bring in a fractional COO, and sometimes they are more sporadically profitable.
The businesses typically have a small but mighty team, but things are running in a “I know it in my head” type of way instead of a systematized way that can be scaled as your team grows.
Generally, the business owner wants something more - whether that’s more of their own time back, or to grow their business or profit substantially.
If you’re spending more time putting out fires than leading, that’s a huge sign.
WHAT TO LOOK FOR IN A FRACTIONAL COO
Not all people who call themselves COOs are created equal.
When you’re looking for a fractional COO, the first thing to look for is someone who has actually built or scaled businesses. Ideally, this person has broad experience in leadership roles and business-building (not just in one single business in a single industry or niche).
Your COO should also be data-driven, bringing analytical and financial skills to be able to use data to effectively steer your business.
Lastly, they should be a true leader. They should communicate clearly and directly, while also centering on your priorities and goals for the business. You’re looking for a strategic partner, not a task-doer.
SO, SHOULD YOU HIRE A FRACTIONAL COO?
If you’re craving structure in your business, a fractional COO can change everything in a short period of time. They give you the strategic brainpower of a full-time executive without the full-time price tag, and they create the operational foundation you need for the next level of your business.
If you're curious what COO support could look like in your business, book a strategy chat with our team. Whether you need operations, marketing, or a full-system overhaul, we’ll help you figure out the right level of support for where you’re headed next.
