Welcome to The Fractional Frontier

Fractional services are reshaping the professional landscape. Whether you're a finance or accounting professional seeking new opportunities, an established fractional expert, or a business leader exploring flexible talent solutions, this newsletter is your resource. The demand for fractional professionals has skyrocketed since the pandemic, making it a dynamic and exciting field. Join us as we delve into the world of Fractional Services as a Solution, offering insights and best practices for both providers and clients. We welcome your contributions and perspectives. Now - let's launch into the Fractional Frontier.

Let me preface this by saying that the information in this article are based only on my experiences and is written for people who may be thinking about the fractional alternative and perhaps for those who are relatively new to the Fractional Frontier.

Throughout my 30+ year career in finance and accounting, I always thought that fulltime jobs were my only career option. Approximately five years ago, I was winding down from a fulltime job and I happened to go to breakfast with a friend (also a CFO) I hadn’t seen for a couple of years.  I told him I was looking for a new job and he surprised me by saying that I should come work with him as he had purchased a partnership in a fractional CFO firm.

I immediately told him I wasn’t interested – primarily because my only exposure to the fractional/freelancer world was with a company that allowed me to use their name and marketing efforts to help me sell my own gigs – plus I would pay them a percentage of the revenue I generated.  I was not comfortable trying to sell my own gigs and as such had zero interest.

Stay The Same Or Try Something New

My friend told me that his firm was different – they would sell jobs and reach out to me to see if I was interested.  They too would take a % of my revenue however I wouldn’t have to pay them to join their network.  I thought it was worth a shot, so I joined my friend’s firm and became part of its network.  After working with his firm for two years, I left to go on my own.  I have learned many fractional lessons over the past five years and thought I would share them.  If they can help you – terrific.

More Than One Firm

During my time with the firm, I had periods where I was not overly busy. To be fair, the firm had a lot of CFOs on their roster, and they had the unenviably hard task of trying to keep everyone busy and happy. Primarily because I was an idiot, it never dawned on me that I should reach out to other firms to see if I could get gigs through them.  When I went on my own, I was forced to explore any and all opportunities through any firm I could find. In the past year I have co-founded a fractional firm – NeoGig (yourneogig.com).  Every fractional professional we talk to is given the advice that they should work with as many firms as possible.  Having one firm keep you fully utilized is the exception and not the rule – at least in my experience.  Some people pay to join firms and to have access to their leads.  Personally, I have not gone that route but if it works for you – great.

Take Control Of Your Career

Going out on my own really helped me to take control of my fractional career.  I am not waiting for firms to find gigs for me. It has also made me face one of my professional fears – selling.  I am not a sales person; however, I have somehow found  ways to keep busy and to attract new clients. I am actively searching for gigs on my own as well as utilizing platforms like Upwork to try to find work. I also take time to develop and cultivate relationships.

Don’t Be Afraid To Share What You Are Doing And Asking For Help/Work

As part of taking control of my career I learned that it is important for me to share what I am doing with friends, co-workers, etc. By reaching out to my contacts and letting them know I am in the fractional space it has made them aware of my status and I have had several gigs presented to me by friends that I previously haven’t talked with in years.  We all know a lot of business is driven by relationships – don’t be afraid to ask for help/work. However, this shouldn’t be a one-way avenue of help with me being the recipient of help.  I make it a point to try to help anyone I can, whenever I can.

Knowing Your Worth

When I went on my own, the only indication I had of my value was what the prior firm charged for me.  What a fractional professional charges his/her client is a very personal thing at it is fed by a person’s experience, education, talent, etc.  However, it is also fed by such items as self-esteem, ego, and self-confidence.  Your rate doesn’t have to be a static one.  Over the past years, my rate has changed as I have realized what clients are willing to pay me.  For me, my rate is a moving target and changes based on a client’s situation. I have worked with pre-revenue start-ups that I have really liked.  They couldn’t afford to pay too much.  But I liked them and wanted to help so I have taken lower rates on several occasions.  As I said, your rate is a personal issue – just feel good about what you charge.  One thing to keep in mind is that you may limit your pool of potential clients based on your rate.  Not too many start-ups or SMBs are likely to be able to afford a rate of $300 per hour.  If that is your rate and you are comfortable with it, that is awesome.  Just understand the implications of your rate.

Know Your Sweet Spot

After 25+ years of working with companies of various sizes and complexities, I have learned where I am the most effective and the most comfortable.  It is always tempting to try to land clients that are outside of my sweet spot – especially if I have capacity. Going outside of a person’s sweet spot may work great for some who want to stretch and grow, and I would never try to persuade anyone not to try to grow and expand.  However, for me, knowing my sweet spot and discussing that sweet spot with potential clients has been helpful.  Potential clients in my sweet spot know that I am comfortable and experienced with companies of their size and that I am not trying to be all things to everyone.

Taking on New Clients

This one is a little strange to discuss. I am not aware of too many fractional professionals who have turned down work.  I might be the only fractional professional on the planet who feels this way, but after multiple experiences starting with multiple clients at the same time, I have come to the conclusion that I need to engage with one client at a time.  For me, trying to learn about a new client and getting up to speed takes a lot of brain power. Trying to accomplish this for multiple clients is a lot to ask.  This is in addition to the work I am doing for other existing clients.  Once I feel comfortable and feel that I am providing value, bringing on another client can make sense. Again, I might be the only person to have this approach.  If you can bring on multiple new clients at the same time and feel productive and up to speed, more power to you.

This fractional approach to labor has been around for a while but in many ways, it feels like it is still in its infancy.  Using professionals on an as needed basis and who may be working remotely in a different time zone is relatively new.  However, the fractional alternative will continue to grow exponentially as companies realize the benefits and cost savings of using fractional professionals when they need one and for as long as they need one.  If you are already a fractional professional – good for you.  If you are not a fractional professional yet – take a look and get informed, it may be a great option for you.