5 Steps for Setting Up Your Fractional Services Business
Congratulations! You’re launching a fractional services business. Providing fractional services benefits both you — allowing you to live your ideal life — and those entrepreneurs seeking your knowledge and expertise to take their business to the next level.
Step 1 – Ideate Your Fractional Business Plan
Step one in setting up your fractional practice is defining who you are, what unique services you offer, and whom you will provide services. In addition, deciding how you provide value and for what cost is key. Whether you use an operating system such as Entrepreneurial Operating System (EOS®) where the V/TO is foundational, or you develop a business plan outlining your strategy and goals, the creation of your business plan comes first. Include any personal or professional partners in the discussions for support.
STOP HERE — IMPORTANT!!! As you launch, be certain you have undertaken the necessary steps to understand the financial impact building a new practice can bring. Having stable savings from which to draw the first year is essential. The time and efforts of relying on clients to pay invoices on time and develop, send, and follow up on those invoices should not be underestimated. Ok, now you can keep reading…
Step 2 – Develop Measurable Goals
Layered on the business structure should be specific and measurable goals, both professional and personal. What does the life you want to live look like? How will you make that ideal life a reality? Where do you bring value to your clients? What are your passions, and how do you translate those passions to make a difference? With what types of people do you work best? Who then is your ideal client? These are all questions to consider — among others.
Step 3 – Setup Your Business Name
Once your fractional services business is defined, select a name. Carefully choose a unique moniker that allows others to identify the nature of your business easily. Then register the name and chosen structure (LLC, S-Corp, etc.) in your local jurisdiction, partnering with appropriate legal and financial entities to ensure proper adherence to rules and regulations.
Step 4 – Determine Your Fractional Services
Identify your service offerings based on your ideal client needs, layered with the value you can provide. When it comes to pricing, remember that we always tend to under-value our worth. It is always a good idea to run your pricing structure by a mentor or valued partner (preferably someone in a similar type of business).
Step 5 – Get Out There and Network
You’ve likely been networking throughout creating and building the business. Perhaps you even have your first client — or three — set to sign with you as soon as you’re ready! Open, honest, and authentic conversations with your network and potential clients will return to you in spades. Be clear about who you are, what you offer, and the value you provide. At the same time, know when to say “no.” By staying true to your personal and professional core values, the benefit you bring is that much stronger.
With a good business plan in place, your ideal personal life outlined, your value proposition, pricing, and business name defined, you’re ready to work with clients. Be realistic about the time required both ON the business and IN the business.
Your calendar is your best friend. Schedule days/time for business development, work with clients, and administrative duties. Then seek out organizations where your ideal clients are tuned in. Participate, give back, and use those resources to stay in front of those perfect clients. You can also join the Fractional Leadership Network.
Peer groups and valued partners can be important referral sources for the delegation of business areas that do not play to your strengths or when additional help is needed. Delegation in your personal and professional life is the key to getting the things you should not be doing off your plate and giving you the time to focus on your Unique Abilities. One example: I have not cleaned my house in seven-plus years. I hate cleaning; it’s a distraction for me. Seeing dog hair in the corner doesn’t bother me, knowing Cindy will be here in a few days to clean. I am also supporting Cindy and her small business — a total win/win!! Remember: just because you CAN, doesn’t mean you SHOULD.
Now, Reap the Rewards
Fractional work is a balancing act. The rewards can be huge! Patience, persistence and understanding you are running a marathon — not a sprint — are all necessary. Congratulations on building your fractional practice! Now get out there and offer your expertise to the world with confidence!
About the Author
Jamie Munoz is the founder and visionary of a team of Fractional Integrators at Catalyst Integrators, helping busy visionaries and entrepreneurs maximize their potential by running companies on EOS. Jamie is also a certified John Maxwell Team coach, speaker and trainer. Contact Jamie here.