💡 Business Tip - Revenue from Fractional Roles (Issue #81)
Could a fractional role add another income stream?
What if you could make some extra money doing what you used to do as an employee without being stuck with one employer for 40+ hours/week?
That’s the beauty of fractional roles, which are becoming increasingly popular (I talk about this in the video below). I remember hearing about it here and there about 15 years ago. It started with fractional CFOs, and then I started hearing about fractional CTOs.
Smaller companies and startups rarely have the need—or the money—to hire full-time employees for a few key senior positions (e.g., a CFO). They still need what those roles provide, but they can’t afford to bring on an employee like that full-time. Or, perhaps they can’t attract the level of talent they need yet.
When I first left the corporate world behind in 2010, a startup approached me about a full-time CPO position. The position would have required that I relocate my family, which I didn’t want to do. I also wasn’t feeling excited about diving right back into a full-time job.
So, I proposed a fractional role on retainer, instead. I dedicated 10 hours/week to serving as their Head of Product. I attended senior leadership meetings, helped with product and business strategy, prepared pitch decks, attended board meetings, and held regular 1-on-1 meetings with the Product team. This limited engagement meant that I could take on two more clients in a similar capacity and still have time for my operational business tasks (e.g., accounting, marketing, etc.).
In recent years, I’ve seen more of my old tech colleagues quitting their full-time executive and leadership roles to offer themselves as fractional leaders. They love it! It provides a nice income stream but more free time to live life.
They get to spend time with their families, travel, invest in their health, etc. The companies that hire them get help from a seasoned leader with decades of experience and rare wisdom. It’s a win win!
It depends on your background and work experience, but you might be able to add consulting in fractional roles as another income stream for your business, too. Give it some thought!
I’m Larry Cornett, a Freedom Coach who works with you to optimize your career, business, and life. My mission is to help you become a more "Invincible You" so you can live your life on your terms instead of being controlled by someone else's rules. I live in Northern California near Lake Tahoe with my wife and our Great Dane.