What is a Fractional COO and why you need one
Running a small business can feel like a juggling act. Between chasing new leads, managing the team, delivering client work, and keeping the finances in check, it’s no surprise that many business owners feel overwhelmed. What if you could access the experience and strategic insight of an operations expert, without committing to a full-time salary? That’s where a fractional Chief Operating Officer (COO) comes in.
In this post, we’ll unpack what a fractional COO actually does, how they can help small businesses grow profitably, and why engaging one might be the smartest investment you make this year.
What is a Fractional COO?
A fractional COO is a senior operations leader who works with your business on a part-time or contract basis. They offer high-level strategy, hands-on management, and the benefit of years of experience, but only for the time you actually need.
A fractional COO often becomes a long-term partner, working a few days a month or a set number of hours each week. They might be supporting multiple clients at once, which gives them a broad perspective on what’s working in different industries and business models.
What does a fractional COO actually do?
A good fractional COO wears a few hats including strategist, coach, systems builder, and sometimes even crisis manager. Here are some of the key areas they typically focus on:
Strategic planning
They help clarify your business goals and build operational strategies that align with them. That might involve creating a roadmap for growth, managing a restructure, or preparing for sale.
Process improvement
Fractional COOs are skilled at spotting inefficiencies and fixing them. That includes mapping out current workflows, identifying bottlenecks, and putting better systems in place.
Team Leadership
From mentoring managers to building internal capability, they can be invaluable in lifting the performance of your team and reducing your own workload as a business owner.
Automation & AI
They’re often the ones driving smart technology choices, like choosing a CRM that plays well with your existing tools or automating parts of your sales and onboarding process to reduce admin. They can also identify opportunities to introduce AI to drive efficiencies.
KPI and performance management
A fractional COO will work with you to define what success looks like and set up reporting systems to keep things on track. Think live dashboards, reporting templates and regular meetings.
Managing change
Whether you're growing fast, have won a major project, or changing your delivery model, a fractional COO helps ensure those transitions are smooth and well-managed.
Why hire one instead of a full-time COO?
Cost is a big factor. The median salary for a full-time COO in 2025 is north of half a million dollars. Add super, leave, and potentially equity or bonuses, and it's well out of reach for most small businesses. A fractional COO gives you access to that level of expertise for a fraction of the cost.
There’s also more flexibility. You can scale their involvement up or down depending on what’s happening in your business. Need help launching a new offer or building your SOPs? Bring them in for a few months. Hitting a plateau and unsure how to scale? They can guide that next phase of growth.
And then there’s the diversity of experience. Because they’re working across multiple businesses, fractional COOs often have fresh ideas and innovative ways of doing things. They’re not just rehashing what worked at one company, they’re bringing the best of many worlds.
What kind of results can you expect?
The return on investment can be significant. Businesses often engage a fractional COO because they’re feeling stuck. Maybe you’ve grown faster than your systems can handle. Maybe the team is burning out. Or maybe you just don’t have time to think strategically anymore.
Here’s what the right fractional COO can help you achieve:
More efficient systems that reduce double-handling, speed up delivery, and free up your time.
Clear client processes that improve client communication and reduce handover friction.
Better cash flow by streamlining your invoicing, payment schedules, and workload planning.
Higher team engagement, as roles, expectations, and performance metrics become clearer.
A stronger foundation for growth, with scalable systems that support more clients, more revenue, and potentially, a future sale of the business.
When should you consider hiring one?
Not every small business needs a COO from day one. But there are some tell-tale signs that it’s time to bring in operational leadership, even if it’s just part-time:
You’re consistently overwhelmed and stuck in day-to-day tasks.
The team is unclear on who’s doing what, or processes are different every time.
You’re onboarding new clients or staff but it always feels clunky.
Projects are falling through the cracks or taking too long to deliver.
You’re making money but your margins are tight and you’re not sure why.
You want to step away from the business more but worry it’ll fall apart without you.
Sound familiar? A fractional COO can help you move past these growing pains and set your business up for sustainable success.
What to look for in a fractional COO
When hiring, look for someone with:
Alignment with your values and company culture.
Deep expertise in operations, systems, people, and change management.
A track record of making measurable impact.
Experience across industries and business models.
And don’t skip onboarding, the more context and clarity you give them, the faster they’ll be able to help.
Final thoughts
Hiring a fractional COO isn’t just about saving money on a full-time salary. It’s about accessing the kind of operational leadership that takes your business from scrappy and reactive to scalable and strategic.
For time-poor business owners wearing too many hats, it can be a genuine game-changer. You get your time back, your team runs smoother, and your business becomes more valuable.
Whether you're preparing to scale, struggling to manage growth, or simply ready to run things more efficiently, a fractional COO could be the strategic support you've been looking for.
