Does Your Small Business Need A Fractional COO?
Are you constantly doing busywork like sending emails, looking up client information, or asking for updates from your team and still feeling like nothing ever gets done? Then it might be time to consider a Fractional COO to take some of the chaos out of your workday so that you can focus on growing your business.
What is a fractional COO?
Most large corporations couldn’t run efficiently without the help of an experienced, capable COO. In enterprise businesses, the COO is a senior executive who handles the day-to-day operations of the entire company. The COO reports directly to the CEO, and is usually second-in-command for the entire organization. Think of the CEO as the chief of the big picture, while the COO is the chief of organizing details. A great COO is obsessed with efficiency and is there to make sure operations run smoothly so that the CEO can focus on planning, vision, and growth.
But for small businesses, owners are often responsible for both long-term growth and day-to-day planning. That’s a lot to take on! That’s why many small businesses and solopreneurs rely on fractional COOs to shoulder some of the operational burden. By bringing in operations experts, solo CEOs and SMB owners can focus on what really matters: growing their business.
Fractional COOs work on a contract basis to offer strategic guidance and hand-ons support for individual projects and streamline operations to help achieve specific business goals. Fractional COOs are hired on an as-needed basis to provide small and medium-sized businesses access to high-level operational expertise without the cost of bringing on a full-time executive.
What services does a fractional COO provide?
An experienced fractional COO can provide a wide range of customized services for your business. Most fractional COOs work on both monthly and project-based timelines to offer flexible solutions depending on your needs. Here are some of the services fractional COOs provide:
Develop strategy:
As businesses grow, operations often get more complicated. If you’re taking on new clients but also spending more money to retain those clients, you’re not growing at scale. A talented fractional COO will carefully analyze your operations and find ways to cut costs, simplify processes, and make your business more efficient to accommodate future growth.
At Day to Day Assist, our team of operations experts begins each new partnership with a 90-minute consulting call where our clients explain their biggest challenges and plans for the future. From there, we study your entire organization to find pain points in your workflows and brainstorm customized, cost effective solutions.
Streamline processes:
A great fractional COO doesn’t stop at strategy. Simplifying your processes by finding the right tools for your company culture, workflow bottlenecks, and budget is another benefit of hiring the right operations experts.
For example, spending a significant part of your workday searching for client files, sending follow-up emails, and updating client data eats up a significant amount of time. A fractional COO can find tools that will automatically organize records, send project updates, and update statuses within your systems, so nothing falls through the cracks.
Project management:
Many service-based businesses have a busy season. A fractional COO can help organize, manage, and delegate tasks during hectic times of the year while owners and employees can focus on providing first-rate service to keep clients coming back year after year.
System support:
As you upgrade your systems, you’ll also need to make sure your employees understand how to get the full benefits of those upgrades. At Day to Day Assist, we take pride in offering first-rate education and full support as businesses make the most of their new tools. We offer implementation, training, and one month of on-demand, full-service support after we set up your new systems.
What are the benefits of hiring a fractional COO for a small business?
Running a small business is a balancing act. Most owners and solo CEOs are constantly trying to decide which tasks to outsource and which tasks to take on themselves. If you’re on the fence about hiring a fractional COOs, here are some of the biggest benefits:
Experience:
A fractional COOs can provide all the insights and experience of an industry veteran without the cost of bringing on a full-time employee.
Flexibility:
If you’re looking for help just a few months out of the year or have a specific problem that needs expert insights, a fractional COO can provide solutions that will pave the way for long-term growth without a long-term commitment.
For example, when a real estate team in Houston was having trouble keeping clients in the loop when it came to updates on their home buying or selling process, Day to Day Assist stepped in, studied their systems, and found solutions to automatically manage client follow-up and updates as well as providing at-a-glance resources for managing the entire team’s tasks.
Fresh perspectives:
Sometimes business owners know their workdays are too chaotic but aren’t quite sure why. That’s where a fractional COO can provide important insights into improving your systems and reducing workday overwhelm to help owners find more hours in their day.
Long-term planning:
To increase profits, businesses owners need to adopt strategic initiatives for long-term growth at scale. Having cost-effective systems can help your business run more effectively for years to come.
How much does a fractional COO charge?
Fractional COO rates depend on a number of factors including experience, the scope of the services they will provide, the size of the company, and the number of hours they’ll devote to the project. Fractional COOs are paid either on a per-project basis, hourly rate, or monthly retainer for a set number of hours. On average, you can expect to pay around $150-$300 per hour for a highly experienced operations expert. Working on a project basis can cost anywhere from $1000-$5000+ depending on the scope of the project.
When you’re looking for a fractional COO, be sure to be up front about exactly what services you’re looking for, along with the duties you’re hoping to outsource. Ask questions about experience, especially if you have an industry-specific project. And finally, get quotes from multiple fractional COOs or services and make sure you have a clearly detailed list of the responsibilities they’re willing to cover for the rate you agree on.
How do I know if I need a fractional COO?
Investing in a fractional COO is a big step. Here’s how to know when you’re ready:
You’re growing:
Growth is good, but growing at scale is better. If you’re suddenly seeing an uptick in clients, it’s probably time to streamline your systems to grow your revenue along with your business.
You’re overwhelmed:
If you’re finding yourself spending so much of your time hunting down files, sending emails, or trying to get your team on the same page that you’re not fully focusing on the future of your business, it’s time to bring in the experts and reclaim your workday.
You’re ready to start a second business:
Many of our clients have one thriving business and are looking to add a second (or third!) to the mix. If you’re looking to integrate a second business into your busy day without losing your me time, find an expert to help you consolidate tasks and cut down on busywork.
Ready to get started? Our Done-For-You Systems Service provides customized fractional COO solutions to fix the nagging operations problems in your business within 3 months by simplifying processes, setting up tech tools, and documenting all procedures. So you can step away from repetitive day-to-day work and efficiently delegate to your team.
Book a Clarity Call to learn more about how we can assist you with your operations!
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