Fractional Executives: The Cost-Effective Solution for Small Businesses in Need of Expertise

Fractional Executives: The Cost-Effective Solution for Small Businesses in Need of Expertise

by soshaughnesseyNo Comments

Fractional executives are experienced professionals who work part-time or on a project basis, providing expertise and guidance to help businesses achieve their goals. Often, small businesses need more resources and expertise, making it difficult for them to achieve growth and success. While hiring a full-time executive may not be feasible due to the costs involved, fractional executives can provide a cost-effective solution to this problem. 

A fractional executive differs from a consultant, but the difference may confuse some. Typically, a consultant will provide advice and guidance, but they are separate from your company. A fractional executive works alongside your team, helps in company operations, and is responsible for the outcomes of those operations. They are an extension of your existing leadership team. In most instances, a fractional executive provides all of the responsibilities to your company as a full-time executive.

Cost-effective Expertise

One of the most significant benefits of using fractional executives is cost savings compared to a full-time employee with a similar amount of experience. Hiring a full-time executive can be expensive. Fractional executives work on a part-time or project basis, meaning companies can save money by only paying for the services they need. Additionally, businesses can avoid the costs of recruiting, hiring, and training a full-time executive.

As explained in the FRACTIONALS UNITED BLOG, it is essential to explore the cost of an FTE (full-time employee) compensation plan compared to fractional monthly retainers. The data is eye-opening!

According to data gathered (March 2023) by Salary.com, the median (50th percentile) core compensation (salary+benefits*) for the following C-Suite leaders is as follows:

  • Chief Financial Officer (CFO)- $558,999 ($46,583/mo) + 22% bonus
  • Chief Operating Officer (COO)- $622,672 ($51,889/mo) + 23% bonus
  • Chief Marketing Officer (CMO)- $464,651 ($38,720/mo) + 25% bonus
  • Chief Revenue Officer (CRO)- $408,619 ($34,051/mo) + 12% bonus
  • Chief Technology Officer (CTO)- $387,001 ($32,250/mo) + 15% bonus
  • Chief Human Resources Officer (CHRO)- $449,340 ($37,445/mo) + 25% bonus
  • Chief Talent Officer (CTAO)- $337,197 ($28,099/mo) + 20% bonus

Bonus comp and equity cash totals were excluded from this comparison since both are variable compensation, only sometimes guaranteed. The average percentage offered was noted instead.

The average monthly retainer for fractional executives starts at around $5,000 and goes upwards to $15,000 per month. Retainers vary depending on the experience, scope of work, and level of hourly commitment per month (i.e., 25%, 50%, or 75% commitment to the team/company). The retainer may be higher if the professional has more years of experience, is in high demand, or if the organization is in a large metropolitan area.

If we assume that any given fractional executive discipline is $10,000 per month, then:

  • Fractional CFO – 21% of an FTE
  • Fractional COO – 19% of an FTE
  • Fractional CMO – 26% of an FTE
  • Fractional CRO – 29% of an FTE
  • Fractional CTO – 31% of an FTE
  • Fractional CHRO – 27% of an FTE
  • Fractional CTAO – 26% of an FTE

Flexibility

Fractional executives offer businesses a high degree of flexibility. As part-time or project-based professionals, they can be engaged as needed, providing their expertise and guidance without the long-term commitment of a full-time employee. In particular, this flexibility is valuable for small businesses that may not need an executive full-time. Fractional executives can help companies to address specific challenges or opportunities as they arise without the need for a long-term commitment.

Experience and Expertise

Some projects require a subject matter expert — someone proficient in an area of expertise beyond your team’s knowledge and skillset. Bringing in a fractional expert with previous knowledge and experience on a specific deliverable will save internal resources while simultaneously providing internal training for your team. They have worked with many companies and industries, giving them a broad perspective on business operations and management. This experience and expertise can be valuable for small businesses needing more resources or knowledge to address specific challenges or opportunities. Fractional executives can provide guidance and support, helping companies to achieve their goals and grow their operations.

Fractional executives are experienced professionals who have spent years working in different companies and industries, gaining knowledge and expertise in various areas of business operations and management. They are experts in their field and deeply understand what works and what doesn’t work in different industries. They can bring their wealth of knowledge and expertise to small businesses, providing guidance and support on various aspects of the company.

Strategic Guidance

Fractional executives provide strategic guidance to small and medium businesses. They help companies develop and implement strategic plans, identify new opportunities, and overcome challenges. Fractional executives also offer insights into industry trends and best practices, which helps businesses stay competitive and relevant. Their strategic guidance is valuable for small businesses that need more resources or expertise to develop and execute a comprehensive strategy.

By providing insights into industry trends and best practices due to their years of experience, businesses stay ahead of their competitors. Fractional executives develop and implement strategic plans that align with the company’s business goals. Fractional executives also identify new opportunities and overcome challenges that may arise, providing valuable guidance and support throughout the process.

Increased Productivity

Fractional executives help small businesses increase their productivity. They provide support and guidance to help companies to streamline their operations and improve their processes. Fractional executives also offer project management support, ensuring that projects are completed on time and within budget. Small businesses achieve their goals more efficiently and effectively by increasing productivity.

Fractional executives improve their processes and streamline their operations, making them more productive and efficient. They provide project management support, ensuring projects are completed on time and within budget. This can help small businesses save time and money, enabling them to focus on their core business activities.

Improved Decision-making

Fractional executives can provide valuable insights and expertise so that their small business clients make better decisions. They guide their clients in evaluating different options to make informed decisions based on data and industry trends.

Improved decision-making is a crucial benefit to a small business owner using fractional executives with years of expertise. Engaging a fractional executive to plan the approach and execution of a task objectively can be a massive benefit due to the fractional’s exposure to various industries and companies.

Fractional executives bring a fresh perspective and objective analysis, allowing small businesses to make informed decisions that align with their business goals. They help companies to identify areas to improve their operations and guide them in achieving their desired outcomes. With their vast knowledge and years of expertise, fractional executives have seen many different organizational structures, industry-specific problems, project management, and problem-solving strategies that will help them recommend a solution that the SMB owner may not have considered without their unique viewpoint.

Fractional executives are skilled at analyzing data and market trends to help businesses make informed decisions. They provide unbiased opinions on a range of issues, from developing a marketing strategy to deciding on a new product line. They can also help small businesses evaluate the risks and benefits of different options, guiding how to minimize risks and maximize rewards.

Fractional executives can also help small businesses navigate complex legal and regulatory requirements. This can be particularly valuable for companies operating in heavily regulated industries, where the cost of non-compliance can be high. The experienced fractional executive can guide on regulation compliance and avoid potential legal pitfalls, ensuring that the business operates within the law and avoid costly fines.

Another benefit of using fractional executives is that they can help businesses access new markets and customers. Fractional executives bring a wealth of experience and expertise in different industries and markets, which can be particularly valuable for companies looking to expand into new territories. They guide how to target new customers, develop marketing strategies, and establish new business relationships.

Fractional executives can also help small businesses build strong teams. They can assist in recruiting, retaining, and developing employees, ensuring businesses have the talent they need to achieve their goals. They can also provide training and development programs to help employees build their skills and improve their performance.

In addition to these benefits, fractional executives can provide valuable networking opportunities for small businesses. They often have extensive networks in different industries and markets, which can be particularly valuable for companies looking to establish new business relationships. Fractional executives can also provide introductions to potential investors, partners, or customers, helping businesses grow and expand their operations.

Finally, fractional executives can help small businesses develop a culture of innovation and continuous improvement. They can create a culture that fosters creativity and innovation, encouraging employees to think outside the box and create new ideas. They can also help businesses implement systems and processes that enable them to measure and improve their performance over time.

If you’re a small business struggling to achieve your goals, hiring fractional executives can be a game changer. These executives offer an affordable solution to the everyday challenges of limited resources and expertise. By bringing in fractional executives, you can benefit from their flexibility, extensive experience and knowledge, and strategic guidance. This can lead to increased productivity, better decision-making, and access to new markets and customers. Additionally, working with fractional executives provides networking opportunities and fosters a culture of innovation and continuous improvement. By leveraging the advantages of fractional executives, your small business can position itself for long-term growth and success.

Header Photo by August de Richelieu
March Madness Teaches Us Great Coaching Techniques

March Madness Teaches Us Great Coaching Techniques

by soshaughnesseyNo Comments
March Madness teaches us great coaching techniques

March Madness teaches us great coaching techniques

Published: Tue, 03/14/23

—
Sean O’Shaughnessey
CEO and President
New Sales Expert LLC
[email protected]
513.348.8700

6561 Bluegrass Way
Mason OH 45040
US

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Sales Coaching: A Key Tool for Achieving Business Growth in B2B Sales

Sales Coaching: A Key Tool for Achieving Business Growth in B2B Sales

by soshaughnesseyNo Comments

Sales coaching has become integral to the modern business environment, particularly in business-to-business (B2B) sales. The sales coaching process enhances salespeople’s skills, knowledge, and capabilities to achieve their goals, deliver value to customers, and improve organizational performance. In this article, we will examine the importance of sales coaching in B2B sales organizations, explore the best practices for effective coaching, and discuss the key benefits that result from a well-executed sales coaching program.

Sales coaching has become increasingly critical to the success of B2B sales organizations. Equipping salespeople with the skills, knowledge, and resources they need to deliver value to customers and drive business growth is essential. Here are three reasons why sales coaching is critical in B2B sales organizations.

Firstly, sales coaching helps salespeople to develop the necessary skills and knowledge to engage with customers, understand their goals or priorities, and provide tailored solutions. In a B2B sales environment, customers’ goals are often complex and unique, making it challenging to identify the best strategies for engaging with them. Effective sales coaching helps salespeople identify the most effective ways to engage with customers, build rapport, and establish trust. Through regular feedback and guidance, sales coaches can provide salespeople with insights on approaching different customer scenarios, offering valuable insights, and delivering a superior customer experience.

Sales coaching provides salespeople the necessary tools to improve their communication skills, such as active listening and effective questioning techniques. This active listening capability enables salespeople to understand customers’ unique goals and motivations better, allowing salespeople to provide tailored solutions that meet prospects’ expectations. This skill is essential in B2B sales organizations, where customers’ needs are complex and varied.

Secondly, sales coaching is essential for enhancing the performance of sales teams. Sales coaching helps salespeople to focus on their strengths and weaknesses, set clear goals, and develop strategies for achieving them. Coaching provides salespeople with performance feedback, identifies improvement areas, and provides guidance on addressing these areas. This, in turn, leads to improved sales performance, increased productivity, and higher levels of job satisfaction.

Effective sales coaching can help salespeople identify areas where they need to improve, such as their communication, time management, or presentation skills. Sales coaches can provide their teams with targeted feedback and guidance, offering practical solutions for improving performance. This not only helps salespeople to become more effective at their job, but it also helps them to feel more confident and engaged in their work.

Thirdly, sales coaching helps to create a culture of continuous learning within B2B sales organizations. Sales coaching enables salespeople to develop new skills, learn about new products and services, and keep up-to-date with industry trends. Continuous learning is vital for B2B sales organizations that operate in a dynamic and fast-paced environment, where the ability to adapt and learn quickly is essential for success.

Sales coaching allows salespeople to learn from their experiences and mistakes in a safe environment that doesn’t affect their revenue production. Sales coaches can guide how to approach different customer scenarios, offer valuable insights, and help salespeople to develop new skills. By fostering a culture of continuous learning, sales coaching can help B2B sales organizations to stay ahead of the curve and remain competitive in their industry.

Best Practices for Effective Sales Coaching

To ensure that sales coaching is effective, B2B sales organizations must adopt best practices aligned with their organizational goals and objectives. The following are some of the best practices for effective sales coaching:

  1. Provide Timely and Relevant Feedback: Feedback is critical to effective sales coaching. Managers and team members should provide feedback in a constructive manner that focuses on improvement rather than criticism. Feedback should be timely, relevant, and focused on specific behaviors or actions.
  2.  Focus on Skill Development: Effective sales coaching should focus on developing the skills and knowledge necessary for success in a B2B sales environment. This includes communication, negotiation, problem-solving, and product and industry knowledge.
  3.  Use a Coaching Framework: To ensure that sales coaching is consistent and effective, B2B sales organizations should use a coaching framework that provides a structured approach to coaching. A coaching framework should include a straightforward process for setting goals, giving feedback, and developing skills.
  4.  Measure and Evaluate Coaching Effectiveness: B2B sales organizations should measure and evaluate revenue generation to ensure that sales coaching is effective. This includes tracking sales performance metrics, such as revenue, customer satisfaction, and retention rates.

Critical Benefits of Sales Coaching in B2B Sales Organizations

Effective sales coaching can deliver a range of benefits to B2B sales organizations. The following are some of the key benefits that result from a well-executed sales coaching program:

  1. Improved Sales Performance: Effective sales coaching can lead to improved sales performance, increased productivity, and higher levels of job satisfaction. Sales coaching provides salespeople the necessary skills, knowledge, and support to achieve their sales goals and deliver customer value. This, in turn, leads to increased sales revenue, higher customer satisfaction, and higher customer retention.
  2.  Increased Employee Engagement: Sales coaching can help to increase employee engagement and motivation. When salespeople receive regular feedback, guidance, and support from their coaches, they feel more valued and invested in their work. This, in turn, leads to higher levels of job satisfaction and lower turnover rates.
  3.  Enhanced Customer Relationships: Effective sales coaching can help salespeople build stronger customer relationships. Sales coaching can help salespeople to identify customer needs, provide tailored solutions, and establish trust. This leads to stronger customer relationships, higher customer satisfaction, and greater customer loyalty.
  4.  Continuous Learning: Sales coaching helps create a continuous learning culture within B2B sales organizations. Sales coaching provides salespeople opportunities to learn new skills, develop their knowledge of products and services, and keep up-to-date with industry trends. This, in turn, leads to more significant innovation, improved performance, and competitive advantage.
  5.  Aligned Goals of the Company and the Team: By doing an adequate job of sales coaching, the salespeople are working toward the same goals as the company. This prevents wasted activities that don’t serve the purposes of the company. Let’s discuss this a bit more.

Setting Clear Goals and Objectives

Setting clear goals and objectives for salespeople is crucial to the success of any B2B sales organization. These goals and objectives provide a framework for salespeople to work within and help to focus their efforts on achieving specific outcomes. Here are some reasons why setting clear goals and objectives is essential for salespeople:

Setting Clear Goals and Objectives: Coaching provides a sense of direction and focus.

Setting clear goals and objectives helps salespeople to understand what they are working towards and what they need to do to achieve success. Having a sense of direction and focus is essential for salespeople as it helps them to prioritize their tasks, make informed decisions that align with their company’s needs, and stay motivated.

Setting Clear Goals and Objectives: Helps to measure progress and success.

Setting clear goals and objectives allows salespeople to measure their progress and success. This is important as it provides a sense of achievement and helps to maintain motivation. Tracking progress will enable salespeople to adjust their approach to get on track to meet their goals.

Setting Clear Goals and Objectives: Creates accountability.

Setting clear goals and objectives helps to create accountability for salespeople. When goals and objectives are clearly defined, salespeople are more likely to take ownership of their work and strive to achieve their targets. This sense of ownership and accountability helps create a performance culture and can increase job satisfaction and employee retention.

Setting Clear Goals and Objectives: Aligns salespeople with the organization’s overall objectives.

Setting clear goals and objectives ensures that salespeople align with the organization’s overall objectives. This alignment is crucial as it helps to ensure that everyone is working towards the same goal and that the organization is moving in the right direction, as defined by company leadership. This can help create a sense of purpose and meaning for salespeople, increasing motivation and engagement.

When setting goals and objectives for salespeople, it is essential to ensure that they are specific, measurable, achievable, relevant, and time-bound. These SMART criteria help to ensure that goals and objectives are meaningful and actionable. Here are some tips for setting SMART goals and objectives for salespeople:

  • Be specific: Clearly define what you want salespeople to achieve, such as revenue targets or the number of new customers.
  •  Make them measurable: Ensure that goals and objectives are measurable so everyone can track their progress and adjustments can be made if necessary.
  •  Make them achievable: Set goals and objectives that are challenging but achievable. Setting unrealistic goals can lead to demotivation and disengagement.
  •  Make them relevant: Ensure that goals and objectives are relevant to the salesperson’s role and the organization’s overall objectives.
  •  Make them time-bound: Set a clear timeframe for achieving goals and objectives. This helps to create a sense of urgency and ensures that salespeople are focused on achieving their targets.

Effective sales coaching that includes setting clear goals and objectives is a critical component of success in B2B sales organizations. It helps salespeople develop the skills, knowledge, and capabilities needed to engage with customers, enhance their performance, and create a culture of continuous learning. By adopting best practices for effective sales coaching, such as using the SMART criteria to set goals and objectives, B2B sales organizations can realize a range of benefits, including improved sales performance, increased employee engagement, enhanced customer relationships, and continuous learning. Therefore, sales coaching should be a top priority for any B2B sales organization that wants to achieve long-term success and growth.

If you are unsure how to create an atmosphere of great coaching in your organization, please contact me. You can reach me by filling out the form on this site or by emailing Sean@NewSales.Expert.

Header Photo by cottonbro studio
Maximizing Sales Performance: The Power of Coaching

Maximizing Sales Performance: The Power of Coaching

by soshaughnesseyNo Comments

As a small business owner, you know that your company’s success depends on your sales team’s performance. That’s why providing your team with the tools they need to improve their skills and achieve goals is crucial. Regular coaching sessions help your sales team grow and perform at their best.

Identify Areas of Struggle and Success

Coaching allows you to identify areas where sales team members are struggling; while recognizing areas of success. You help your sales team focus on growth areas by acknowledging what works well or needs improvement. This effort fosters a culture of continuous improvement and provides sales team members with the tools they need to be successful.

Be Specific and Constructive

It is essential to be specific and constructive when providing coaching and feedback and providing actionable feedback that focuses on particular areas for improvement. By focusing on specific areas for improvement, you can help your sales team make changes to improve performance.

Provide Support and Guidance

Regular coaching and feedback sessions allow sales leaders to work closely with each sales team member, providing them with the guidance and support they need to improve their skills and achieve their goals. This coaching can include setting individual sales targets, providing training resources, and offering personalized support for each team member’s unique needs. By providing this support and guidance, you can help your sales team to succeed and contribute to the overall success of your business.

Regular coaching and feedback sessions are essential for improving the skills and performance of your sales team. By identifying areas of struggle and success, being specific and constructive in your feedback, and providing support and guidance, you can help your sales team achieve their goals and drive success for your small business. Remember, investing in your sales team is an investment in the future success of your business.