Scale smarter: Consider fractional services for small business growth

Mar 13, 2024

Building and running a business is hard. As entrepreneurs, we work our tails off to do great things. But handling all areas of our business can become all-encompassing as headcount grows, compliance complexities rise and operational demands intensify. It takes time away from doing the things we’re best at, like building a great team.

Using fractional experts is one potential strategy to consider. (Full disclosure: I run a fractional HR company, but in this article, I’ll focus on fractional services apart from HR.) Fractional professionals understand the needs of small businesses but also can adapt to the evolving demands of a growing enterprise. Using fractional professionals can offer you expertise without the commitment a full-time, highly compensated employee requires.

It’s important to keep in mind, however, that there are some business situations where a company may require more comprehensive or dedicated assistance beyond what fractional services can provide. This often happens when a company grows—at a certain size, it may need a dedicated, full-time executive in a particular role, or perhaps a full-time team in high-volume roles such as customer services and support.

Flexibility as you grow your business

Fractional services offer flexibility, instead of traditional models that provide one-size-fits-all solutions. Whether your business is a startup with a handful of employees or an established SMB that’s growing fast, fractional services can offer the support you need at different growth stages.

Staffing requirements change as the business grows. Fractional services are great for adapting to these changes, providing custom solutions in areas like CFO or accounting roles where needs can be cyclical. The agility that fractional services provides makes sure that your support remains in sync with the changing demands of your business.

Fractional services can also be more cost-effective than traditional staffing models, which come with fixed costs and commitments. Fractional services are a scalable cost structure, allowing businesses to pay only for the services they need, when they need them.

Avoiding traditional staffing constraints

1. Access to expertise without full-time commitments

Many small businesses find it hard to afford a full-time staff with senior-level expertise. Fractional services alleviate this burden by providing access to expert professionals on a part-time basis. This gives businesses specialized knowledge and experience without the commitment of a full-time hire.

2. Mitigating risks with specialized guidance

As businesses grow, HR, accounting and legal risks become more complex. Compliance issues, talent management and employee relations, for instance, require specialized knowledge. Fractional service providers can serve as strategic partners, offering expert guidance to navigate these challenges effectively. This not only mitigates compliance risks but also ensures that decisions align with the business’s growth objectives.

3. Streamlining operations for focus on core activities

Operational efficiency is crucial for small businesses aiming to scale intelligently. Fractional service providers streamline processes, implement efficient systems, and handle day-to-day tasks with precision. This frees up business owners to focus on core activities such as product innovation and business development.

Realizing the benefits of fractional services scalability

While they aren’t the right choice for all businesses or stages, for many small business owners pursuing early-stage growth, fractional services can be strategic allies, offering benefits that extend beyond traditional staffing models. Their flexibility, adaptability and cost-effectiveness make them a strong option to consider.

Navigating the journey to growth is challenging, but with trusted partners, small businesses can traverse the path with resilience, intelligence and a focus on enduring growth.


The Business Journals Leadership Trust
By Mark D’Agostino, President at ConnectedHR
Mark D’Agostino founded ConnectedHR in 2014 and currently serves as President.

Click here to read the original article in the Business Journals.

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