As you grow, you will need to prepare new executives (including a new CEO) and get involved in more companies in some form (if you choose to do so).
This role is referred to as a fractional executive.
In short, a fractional executive is an experienced C-suite executive — CEO, CFO, CIO, COO, CSO, CTO, or CMO — who works less than full-time. The work arrangement might call for the fractional executive to be on the job a few hours each day or a few days each week.
Fractional Executives typically charge between $5,000 and $10,000 per month for engagements of twenty to thirty hours. It’s an effective hourly rate of between $250 and $400. These engagements vary and can be complex.
Key Essentials for Aspiring Fractional Executives:
- Extensive Executive Experience.
- Proven Track Record of Success.
- Strategic Thinking and Vision.
- Industry Expertise.
- Strong Network and Relationship Building Skills.
- Excellent Communication and Interpersonal Skills.
- Flexibility and Adaptability.
- Operational and Financial Acumen.
You can also hire fractional executives.
One of the biggest benefits of hiring a fractional leader is the significant cost savings.
Hiring a part-time executive typically doesn’t involve paying for the usual slew of perks and benefits, equity shares or bonus compensation that come with onboarding a full-time c-suite member.