Fractional Leadership - A Trend?

If you’re a startup, achieving sales goals is critical to securing the next round of funding. But the current recession has made it more difficult than ever to achieve either. Many startup CEOs are facing the same challenge: they require the expertise of a seasoned sales leader to drive results, but lack the resources to hire a Chief Revenue Officer (CRO) or Sales Leader. They opt for either a less experienced leader or try to master sales on their own, hoping to figure out how to get the numbers they need to raise the next round - in order to hire the experienced leader they need. This is a broken cycle and it doesn’t have to be this way.

Enter the Fractional Sales Leader – a flexible and cost-effective solution that’s bridging the gap between limited resources and ambitious sales goals. There are three main reasons CEOs are opting for a fractional sales leader:

1. Companies have Insufficient workload to justify a full-time hire:

While startups might need the expertise and strategic guidance of an experienced sales leader, their sales operations may not yet generate enough workload to justify a full-time hire. Fractional Sales Leaders offer a scalable solution by providing the necessary level of talent, experience, and leadership to drive sales processes and outcomes, without burdening the organization with unnecessary overhead. They can often glide between Exec and Producer - fulfilling the player coach role.

   2. Companies can’t afford the right sales leader, yet:

Building a high-performing sales team requires top talent, and experienced sales leaders command a premium in the job market. Companies, especially those in their early stages, often struggle to allocate the financial resources needed to attract and retain a seasoned sales leader. Fractional Sales Leaders offer a more affordable alternative, enabling companies to access the caliber of talent they require, without breaking the bank. This allows companies to achieve the revenue goals they need to hire the full-time sales leader they want. 

Companies that have both the full-time workload and funds to hire the right leader, are finding that it takes 3 to 6 months to hire the right leader. While this process is crucial for hiring this key role, it causes delays in revenue generation. Fractional Sales Leaders step in to fill this gap, providing immediate support and guidance. This allows companies to have a thriving sales operation, while looking for the best full time hire. Fraction sales leaders often help with the hiring process of this key role - and enable them to step into a working plan.

Fractional Sales Leaders provide a vital resource for startups aiming to achieve ambitious quotas with limited resources and tight budgets. By providing access to top-tier talent, scalability, and immediate impact, they bridge the gap between a startup's current sales capabilities and their desired outcomes - which often allows them to position themselves for the right hire, or the next round of funding to afford the right hire. 

So what does fractional mean? Often time it means for a fraction of full-time hours, for a specified length of time, or both. Your Fractional CRO might work certain days, or certain hours each day. They may own specific tasks that dictate how/when they work. Or their hours & tasks may be matched to your budget & goals. It's up to you to define what your company needs at this stage.

This is why startups are increasingly leaning towards this innovative approach, to position themselves for accelerated growth, increased investor confidence, and the ability to establish a solid sales foundation. This strategic move is helping startups leverage extensive experience from sales leaders who can rapidly assess the sales landscape, identify their ICP, and Go-to-Market strategies, and implement those recommendations for tangible results.

By leveraging the expertise of Fractional Sales Leaders, startups can accelerate their sales processes and maintain momentum during crucial growth stages.