So, you’ve embraced the world of fractional leadership. You’ve created your LLC, and you have your first few clients from your close network, bringing your expertise to businesses and enjoying the flexibility it affords.
As you’re looking ahead, what should you be thinking about to set the course for a sustainable fractional business? What’s next?
Let’s run through some key considerations.
1. Defining Your Personal Vision: Focus and Scalability
The first question to ask yourself is: what’s your ultimate ambition? Several considerations when thinking about how to position yourself, your brand and your company include:
- Focus and Breadth of Client Service: Are you seeking the stability and focus of a single, full-time role? If so, your strategy will involve identifying a client where you can create significant impact and demonstrate your value to the point where they see you as an indispensable asset. This approach offers stability, but potentially less autonomy.
- Scalability: Are you drawn to the entrepreneurial spirit and going big? If you decide your offerings and focus could be scalable by creating leverage through others this path offers greater control and potential for higher rewards but also carries more risk.
There’s no right or wrong answer. It’s about aligning your career trajectory with your personal and professional goals.
2. Creating a Business vs. Operating as an Individual or Independent Contractor
Starting your own business offers a lot of benefits for fractional leaders.
- Tax Strategy: Whether it’s postponing paying taxes on certain income until a later date, managing cash flow, or taking advantage of the numerous deductions small business owners enjoy – consult a tax advisor early so you can take advantage of the business-friendly deductions and advantages.
- Client facing brand: Many businesses prefer working with someone like them – another business. Having your own business can frequently help the approvals required (and the paperwork within) to start working with a new client.
- Affiliations: For many of us, joining a professional organization (SHRM if you’re in HR for example) can only be done under the banner of a business. Signing up for events and professional organizations is simply easier to do as a business – trust us (we’ve tried), many won’t accept a ‘professional looking’ Gmail address!
While there is paperwork involved (and it’s easier in some states than others to start and maintain a business), once your business is up and running it will become an essential part of how you work and how you operate.
3. Marketing Basics: Start with Understanding Your Audience
Whether you’re aiming for consolidation or entrepreneurship, effective marketing is crucial. In either case, focusing on your audience is paramount.
- Identify Your Ideal Client Base: Who are you trying to reach? What are their pain points? What are their goals?
- Tailor Your Message: Use language that speaks directly to your audience’s needs and aspirations. Make it clear what deliverables they should expect when investing in you.
- Build Your Channels: Not everyone needs a website – many fractional leaders only use their LinkedIn. Some have a newsletter. Understanding your audience, where they are, where they will search for you, and perhaps most importantly, your own preferences, will determine where to build your marketing channels.
In a world saturated with information, understanding and connecting with your target audience is the key to standing out.
4. Building Your Infrastructure: From Billing to Time Keeping
As an experienced professional, you are likely to have experience in business operations. But as you grow, you’ll need a robust infrastructure to support your operations.
- Billing and Invoicing: Implement a reliable system for tracking time and generating invoices. Consider using online tools that automate this process.
- Time Management: Develop effective time-blocking and productivity strategies to manage your workload efficiently.
- Client Communication: Establish clear communication channels and protocols to ensure seamless collaboration.
- CRM: A Customer Relationship Management system can help to keep track of client interactions, manage pipeline, and leads.
- Project Management: Whether you are working on your own business, or working for multiple clients, having a project management system is essential.
Investing in the right tools and systems will save you time and reduce stress in the long run.
5. Making Room for the Many Extras: Benefits and Schedule
Finally, remember to prioritize your own well-being.
- Benefits: As a fractional leader or business owner, you’re responsible for your own benefits. Research health insurance, retirement plans, and other essential coverage – these should be built into your pricing.
- Schedule: While flexibility is a perk, it’s also important to establish boundaries. Set clear work hours and stick to them.
- Personal Development: Don’t forget to keep learning. Invest in your own growth by attending workshops, conferences, and networking events.
- Work/Life Balance: Ensure that you are making time for yourself, your family / friends, and for the things you enjoy.
Being a fractional leader, or a business owner, is a marathon, not a sprint. Setting yourself up for long term success, means taking care of yourself.
The path ahead is yours to define. Whether you choose consolidation or creation, remember to stay focused on your goals, prioritize your audience, build a solid infrastructure, and take care of yourself. The world of entrepreneurial fractional consulting offers endless possibilities – embrace them!
