Everything You Wanted to Know About Fractional Chief Operating Officers (Fractional COOs) But Were Afraid to Ask
Susan Goebel
My clients get streamlined operations, boosted profits, and become exit-ready—without the stress. ?? Want the same results? Check out “How We Help Businesses Thrive” in my feature section below.
If you’re growing a business, you’ve probably heard the term “Fractional COO” or “Fractional Chief Operating Officer” tossed around. As companies grow, especially in this fast-paced business environment, more leaders are realizing they don’t necessarily need a full-time Chief Operating Officer (COO) but could benefit from a Fractional Executive.?
What does that mean, and why might it be the solution to your business challenges?
Key Takeaways
In my work with 7- and 8-figure businesses, my team and I often get asked a variety of questions about Fractional COOs. If you’ve been wondering about these same questions, let’s dive in and answer them for you.
What Does 'Fractional COO' Mean?
A Fractional Chief Operating Officer (COO) is a part-time executive who provides operational leadership and strategic oversight for a company, typically during periods of rapid growth or transition. Unlike a full-time COO, a fractional COO works for several companies at once, dedicating a fraction of their time (hence the name) to each. They step in to help streamline processes, scale operations, and guide teams through complex transitions.
Why Do Businesses Need a Fractional COO?
As businesses grow, the complexity of operations increases. A Fractional COO is often brought in to:
By hiring a Fractional COO, you’re essentially bringing on a high-level strategist and problem solver without the full-time overhead.
Is a COO Higher Than a VP of Operations?
Yes, a COO typically holds more strategic responsibilities than a VP of Operations. While a VP of Operations might focus on the day-to-day execution and management of operational processes, a COO is responsible for overall operational strategy, driving long-term growth, and working closely with the CEO to align the business with its goals. A COO not only manages operations but also influences company-wide decisions, often overseeing multiple departments.
How Much Does a Fractional COO Cost?
The cost of a Fractional COO depends on their experience, industry, and the scope of work required. Typically, fractional COOs charge between $200 to $500 per hour. For part-time engagements, you can expect to pay between $7,000 and $15,000 per month, depending on how much time they dedicate to your business. This flexibility allows companies to access top-tier leadership without committing to the high salary of a full-time executive, which can range from $130,000 to $450,000+ annually.
Is a COO Higher Than an Operations Manager or Director of Operations?
Yes, a COO is higher than an Operations Manager or Director of Operations. While an Operations Manager oversees the execution of daily tasks and operational procedures, a COO focuses on the bigger picture. They set long-term strategies for operational success and work closely with other C-suite executives to ensure the company is moving toward its strategic goals.
How Much Equity Should I Give to a Fractional COO?
If you’re considering offering equity to a Fractional COO, a typical range is 1% to 5%, depending on the size and stage of your business. Equity is often paired with a salary or retainer and can be a way to incentivize long-term commitment, especially for startups. Consider using a vesting schedule to protect both parties, ensuring the COO is incentivized to stay on board for the long term.
What’s the Highest Known COO Salary?
The highest known salaries for full-time COOs are typically in large corporations, where compensation can exceed $1 million when you factor in bonuses and equity. However, one of the benefits of hiring a Fractional COO is that you get similar executive-level expertise for a fraction of that cost.
领英推荐
How Much Does a Fractional COO Charge per Hour?
As mentioned earlier, Fractional COOs typically charge between $200 and $500 per hour. The exact rate depends on the complexity of the work, the COO’s experience, and the size of your business. Fractional COOs with experience in highly regulated or fast-growing industries may command higher rates.
What Are the Benefits of a Fractional COO?
The benefits of hiring a Fractional COO include:
How Is a COO Different From a Chief of Staff?
A COO focuses on the operational strategy and execution needed to scale the business. A Chief of Staff, on the other hand, works more closely with the CEO to manage internal communications and the overall functioning of the executive team. While a COO drives growth, a Chief of Staff ensures the day-to-day functioning of the leadership team.
What Services Does a Fractional COO Offer?
The services a Fractional COO provides can vary significantly depending on a business’s unique needs and challenges. Every business is different, whether it’s navigating team dynamics, scaling operations, or preparing for an exit. However, the most common areas of focus fall under People, Process, and Profit. Examples include:
These categories cover a broad spectrum of operational challenges, ensuring businesses have the right leadership and strategy to achieve sustainable growth and profitability.
How Is a Fractional COO Different From a Fractional Integrator?
While both roles focus on operational efficiency, a Fractional Integrator specifically focuses on executing the vision of the CEO within an EOS (Entrepreneurial Operating System) framework. A Fractional COO, however, has a broader scope, working on overall company strategy, including operations, finances, and growth initiatives.
Hiring a Fractional COO could be the key to unlocking your business’s growth potential. By bringing in a high-level executive without the full-time commitment, you can focus on what matters most—scaling efficiently and profitably.?
If you’re curious about how a Fractional COO can help your business, let’s connect for a personalized consultation.
Hi, I’m Susan Goebel, CEO and founder of Scaling Management Consulting Group (SMCG).
With a passion for empowering business owners, I lead a team of experts who specialize in transforming 7- and 8-figure businesses. We focus on operational efficiency, profitability, and exit-readiness to help you achieve brag-worthy success.
At SMCG, we are committed to helping business leaders thrive both personally and professionally. We believe that scalable growth should never come at the expense of your well-being or personal freedom. That's why we work with you to build streamlined operations, aligned leadership, and effective strategies to ensure your business is not only profitable but also sustainable.
Our mission is simple: To empower business owners to scale from $5 to $50 million in revenue while maintaining a life filled with balance and purpose. We build long-term partnerships based on integrity, results, and meaningful relationships, offering Fractional COO and Fractional Integrator services that optimize your operations and elevate your team’s performance.
What makes us different? We go beyond traditional consulting. Our tailored approach ensures that you see tangible improvements in profitability, leadership alignment, and operational clarity within six to nine months of working with us. If not, we reassess and readjust to make sure you’re on track for success.
Our Services Include:
Let’s work together to turn your business into a profitable, self-sustaining operation. Connect with us to discover your business’s true worth and achieve brag-worthy success.
Ready to take the next step? DM me today or email us at [email protected] or visit our shop for valuable resources. Let’s unlock your business’s potential and prepare you for the future.
I help High Performing Executives and Entrepreneurs Advance to the Next Level of Success! | Voted #1 Top Business Coach by Apple News
2 个月Leveraging a Fractional COO offers the perfect balance of expertise and flexibility to drive growth without the overhead of a full-time hire.
Managing Member at Planning Network Partners, LLC
2 个月I can't find anything to disagree with in this post, Susan Goebel! Bravo!
We grow cyber businesses online. Period.
2 个月Fractional COOs are great for businesses needing expertise without the full-time commitment. You get high-level leadership, streamlined operations, and flexibility—exactly when you need it most.
Franchise Consultant - 25 Years Helping People Create More Freedom, Flexibility & Financial Independence for Themselves & Their Families Through Franchise Ownership
2 个月Susan Goebel, you’ve highlighted some compelling reasons for considering a Fractional COO. The flexibility and cost-effectiveness of accessing executive expertise on demand can indeed be a game-changer for businesses looking to scale or optimize operations without the full-time overhead. I'm curious to hear how you get up to speed so that the decisions you're making are well-informed and relevant!
Fractional CMO (fCMO) delivering Strategic Marketing Solutions and Comprehensive Audits to Empower Small Businesses
2 个月Susan Goebel Fractional COOs offer a flexible solution for businesses facing growth challenges. Their ability to streamline operations and drive profitability can be invaluable. What specific operational bottlenecks have you encountered that a Fractional COO might help address?