What is Fractional Growth Team?

Comparative Advantage - What Is It?

A sunny Sunday in Istanbul. It is wonderful to see people walking their dogs in Ma?ka. Not everyone is outside for a walk; some are still selling things, meaning they are working.

Did you know there is a theory in the world called Comparative Advantage? This theory, developed by David Ricardo, has become the fundamental principle of international trade. So, what does comparative advantage mean?

The theory of comparative advantage argues that each country should focus on its relative advantages rather than trying to produce everything most efficiently. In other words, if a country can produce a good at a lower opportunity cost compared to other goods, it has a comparative advantage in that good. This country should produce the good where it has a comparative advantage and increase its gains.

Don’t think of comparative advantage only between countries. Comparative advantage also exists between companies. A company is likely to increase its profits more by focusing on and improving the product it does relatively well rather than switching to produce another product. This is where focus comes into play. Yes, everyone should do what they know best.

We can apply this theory not only to companies but also to departments within a company. For instance, a company might have a very high sales closing rate but a slow lead acquisition rate, indicating a problem in marketing. Or it might have high revenue but struggles to calculate profitability due to a lack of a well-structured finance team. A company operates with a holistic view, constantly striving to improve things every day. With AI integrating into business workflows, most of the mundane tasks can now be handed over to AI or automation, allowing us to spend more time on development. But what if we haven’t established a good team to think about improvements? This is where the problem starts.

Why Startups Fail?

Globally, 95% of startups fail. More than 50% of these failed startups do so because they lack a good team. If there is a problem with a few gears in your mechanism, you will see that other gears within the mechanism start to dull and become inoperative.

I have been thinking for a long time about how to solve the issue of businesses failing due to poor teams. I realized that building effective teams requires a strong foundation in strategy and growth. Skills in Data-Driven Growth and Marketing can play a crucial role in this. By focusing on these areas, we can help businesses develop and implement strategies that ensure their teams are more efficient and aligned with their goals.

Fractional Growth Team

Post-pandemic, remote work and assigning freelancers to specific tasks have become many habits in our lives. This way, companies can accomplish many tasks without relying on a single person. At the same time, you don’t need to be in the same office to work with the best in their field! How amazing, isn’t it?

This is where the term Fractional comes from. Imagine a team that works as if it were an internal department of your company, and only with a contract… This is called Fractional Teams. A Fractional Growth team, similarly, is a team that manages your marketing and sales activities and does so as an internal team. This is what I want to do right now.

For now, I just wanted you to hear about this term. In the future, I will write more in detail about how these teams work, what areas they touch, and how they contribute. But I didn’t want you to spend this wonderful Sunday reading a long article :) I wish everyone a great week in advance!