Hooked on Fractional Superpowers - Issue 19
"An investment in knowledge pays the best interest." - Benjamin Franklin
Every startup founder reaches a point when they realize they can't do everything by themselves. The demands of running a growing business can quickly surpass their abilities and resources, elevating the need to hire a functional leader to keep the ball rolling. The downside? Hiring the right person takes time, and as the saying goes, “Time is money.” This is especially true in the frenetic world of startups. But what if there was a less risky, more immediate solution to plug your leadership gap? Thankfully, there is.
What’s going on?
It's perfectly normal for first-time founders to lack expertise across certain areas of the business. And once you've found product-market fit and your growth becomes repeatable, gaps in your operational skills may begin to show. Perhaps you've been so focused on launching your startup and getting the wheels turning that certain business functions have been overlooked. Or maybe you're finding that everyone reports directly to you, overloading your management capacity. The consequence? Your business might struggle to maintain its growth trajectory while you scramble to fill leadership roles. Traditional hiring processes can take anywhere from three to six months—time that you can't afford to lose. That's where fractional leadership comes in.
Why does it matter?
At your startup, the progress you make is your ultimate currency. But often, as a founder, you find yourself robbing Peter to pay Paul, splitting your time across multiple hair-on-fire priorities. While you might think you’re making progress, it’s only an illusion. This is why temporary fractional leaders can be such as asset. They give you back time to do what you do best while they dig into specific functional areas of the business that need care and attention. Fractional engagements offer considerable flexibility. You can expect to pay a fractional exec working 20ish hours a week roughly 60-70% of what you would pay a full-time executive, but the real advantage is in the low risk/high upside often seen in these engagements. Chances are, you are bleeding in some capacity anyway. With this approach, you solve the leadership gap, buy time, and slow the bleeding. Plus, the impact of it being the wrong fit is still far less compared to the cost and disruption that can happen when hiring the wrong full-time executive.
What do others think?
“Give some thought to what capabilities are missing in your leadership team. What gaps are keeping you from achieving your goals? Is it a GTM strategy? Is it demand gen? Is it operationalizing a sales team? Talk to Advisors and VCs who are great at pattern matching and can give you the right framing for what you're missing. They can introduce you to a few people who can help. Talk to as many people as possible to understand their capabilities, approach, and whether they could be a fit. Once you bring on a fractional leader, trust is everything. Trust them to be good at what they do, empower them to do their job, and most importantly, get out of the way.” — Hema Padhu, Positioning, Brand, and GTM expert
What do we think?
Fractional executives are like ER doctors, jumping in to swiftly diagnose critical areas make a plan, and get to work. They have superpowers. Even though they're part-time and temporary, they're vital to your team. They're not just fillers — they offer precious insights about effective leadership and can even help you find the right full-time leader. In the fast-paced startup world, fractional resourcing keeps your momentum going and sets you up for long-term success. One of the greatest things about the startup journey is collaborating with others who are genuinely invested in building with you. Fractional leaders love building so much that they’ve committed to doing it over and over. Since they’ve seen these cycles multiple times, they are a true ally to founders, providing a no-nonsense, efficient approach. These leaders want to see success as much as you do — their reputations depend on it — so they operate from a place of objectivity. And that’s exactly what you need when everything is on the line.
What do YOU think?
Take Action
Best practices and things to be aware of when considering fractional engagement at your startup:
Talk to VCs and Advisors — try to fill the gap in your knowledge as a founder. The you-don't-know-what-you-don't-know box is a big one. Make sure you understand the role, what a functional expert can do for you, and what you need to do to support them so they can be successful.
Define success and scope of ownership upfront. Be specific on milestones and deliverables.
When sourcing fractional leaders, tap into your network for proven operators with a strong track record and trust within your team or board. Remember, great fractional leaders have a specific superpower that you need right now, so they should have a verified history of delivering results quickly.
Agree on the length and structure of the engagement and stick to it. They're part-time, so make it work for everyone.
Pay them a monthly retainer, but it’s encouraged to include equity for a stake in your success, usually with fast-track vesting.
Executive recruiters are another great resource for insights and profiles on your quest to find great fractional leaders.
Tools, Events, Insights
Reforge —> The Rise of Fractional Executives
AI Tinkers Summer Hackathon → Register Here
Madrona Events → Angel Investor Meetup
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