Why Some Fractional Roles are an Untapped Goldmine for Startups

About the Author: I'm Christopher Bereton, I am a practicing Fractional Chief Product Officer. Previously, I was the Chief Product Officer at several fast-scaling businesses. I’ve seen firsthand how effective fractional leadership can be across various industries, and I’m here to share insights on why founders should tap into fractional talent, particularly in areas that are often overlooked.

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As we can all see, the fractional leadership movement is growing rapidly. More and more startups and growing companies are realizing that they can bring in top-tier executives part-time to guide key functions without the financial burden of a full-time hire. It’s a powerful shift for growing businesses, especially in early stages when cash is tight, and flexibility is key.

However, what might be less obvious is that certain fractional roles are far more popular than others. Currently, the most common and widely accepted fractional roles fall into what we call Level 1 roles. These are positions like fractional CFOs, CMOs, and CTOs—roles that are easy to define, compartmentalized, and immediately recognized as critical needs that founders usually don’t have the expertise to handle themselves.

But less popular roles—what we’ll refer to as Level 2 roles—are equally important and present an untapped goldmine for founders. These include roles like Product, Operations, Sales, and HR leadership. In this post, I’m going to focus specifically on fractional Heads of Product, but the logic applies to the other Level 2 roles as well.

By the end of this post, I’ll explain why these fractional leaders can offer immense value to your startup, especially at critical points of scaling, and why waiting to hire a full-time leader may be holding your business back.

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What the Heck Are Level 2 Fractional Roles?

Before diving into the specific benefits of fractional product leadership, let’s clarify what I mean by Level 2 fractional roles.

• Level 1 fractional roles, such as CFOs or CMOs, are relatively common because they represent clear-cut functions that are easy to outsource and have been commonly leveraged for years. Founders usually recognize the need for these roles early on because they don’t have the skills or time to manage them.
• Level 2 fractional roles, like Head of Product, Sales, HR, or Operations, are less commonly outsourced because founders or other senior team members often assume they can handle these responsibilities themselves, at least in the beginning. These roles are less compartmentalized, and founders often think they can get by with internal solutions until the need for a full-time leader becomes inescapable.

To read more about the concepts of Level 1 & Level 2 roles, check out “Why Don’t I See Any Fractional Jobs In My Function Area?”

However, relying on internal team members to "fill the gaps" in these areas often leads to inefficiencies, missed opportunities, and slower growth. Today, I want to focus on how hiring a fractional Head of Product can sidestep these issues and unlock your startup’s potential sooner.

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Why Founders Overlook Fractional Heads of Product

It’s common in early-stage startups to have the CEO and CTO typically handle product management themselves. The product vision often comes directly from the founder’s original ideas, and the CTO manages the technical build. In many cases, this works well for a while. But as the product matures and the company begins to scale, product strategy becomes more important and complex.

Here’s why founders often don't think about hiring a fractional Head of Product:

1. They Haven’t Seen It Done Before: Historically, founders have had no choice but to take on product leadership themselves because fractional product roles weren’t widely available. This “DIY” approach is now ingrained, even though fractional leadership in other areas (like finance or marketing) has become more common.
2. They Rely Heavily on CTOs: Founders often lean on their CTOs to run the product function. While CTOs may be able to handle early-stage product tasks, they rarely have the bandwidth to develop long-term product strategy alongside their technical responsibilities. Over time, this split focus leads to inefficiencies and missed opportunities.
3. They Wait for Full-Time Solutions: Many founders assume they can "make do" until their company is large enough to justify a full-time Head of Product. But waiting can mean missed growth opportunities and the development of misaligned product strategies that need to be corrected later.

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The Pitfalls of Lacking True Product Leadership

When product leadership falls solely on a founder or CTO, several common pitfalls arise:

• Split Focus: Product strategy demands dedicated attention. CTOs juggling technical operations and product leadership are more likely to react to immediate technical issues rather than proactively shape the product roadmap. This leads to bottlenecks and slows innovation.
• Misalignment with Market Needs: Without a dedicated product leader, teams may fail to align product strategy with actual customer needs. CTOs are often more focused on technical excellence, which may lead to products that are technically sound but miss the mark with users.
• Inefficient Scaling: As the product becomes more complex and the customer base grows, managing product backlogs, prioritizing features, and scaling feedback loops become more challenging. These are not typically core strengths of engineers or CTOs, and trying to manage both engineering and product can create inefficiencies.
• Opportunity Costs: Every minute the CTO spends on product leadership is a minute they’re not scaling the engineering team or building technical infrastructure. The opportunity cost is massive, especially as the startup begins to grow.

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Why a Fractional Head of Product Can be the Right Solution

Founders often assume that the only alternative to DIY product strategy is hiring a full-time product leader, which can be costly, time-consuming, and risky. But there’s a better solution—hiring a fractional Head of Product. Here’s what a fractional product leader brings to the table:

1. Immediate Expertise: A fractional Head of Product offers high-level product expertise without the full-time commitment. They can help shape product strategy, create feedback loops, and build a scalable roadmap—all while working just a few days per week.
2. Strategic Focus: A fractional product leader isn’t just focused on execution; they bring long-term, strategic thinking. They help prioritize features, align product development with customer needs, and ensure the team is focused on the most impactful work.
3. Cross-Functional Leadership: Product leaders are often the bridge between different teams. A fractional CPO can ensure cross-functional alignment early on, enabling smoother operations as the company scales.
4. Faster Product-Market Fit: Fractional product leaders are often experienced in driving product-market fit across multiple companies and industries. Their external perspective allows them to identify market gaps or product misalignments quickly.

Low-Risk, High-Impact Hiring: Hiring a full-time product leader can take months and carries the risk of a mis-hire. A fractional CPO can help you find and onboard the right full-time leader later, acting as an interim solution that lays the groundwork for future growth.

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Applying This to Other Level 2 Roles

This thinking applies equally to other Level 2 fractional roles, such as Sales, HR, and Operations.

• Fractional Sales Leaders: As the sales pipeline grows, a fractional VP of Sales can help set up formal sales processes, coach teams, and develop strategies to improve lead generation and conversion—while working part-time.
• Fractional HR Leaders: A fractional Head of HR can implement foundational processes early, ensuring compliance, strong culture, and efficient recruitment before these issues become problematic.

Fractional COOs: As companies scale, operations become increasingly complex. A fractional COO can help streamline workflows, improve efficiency, and create scalable systems without the financial commitment of a full-time hire.

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Overcoming Common Mental Barriers

Founders often hesitate to hire fractional leaders for Level 2 roles due to common concerns. Here’s how to overcome them:

• “How can a fractional leader understand our product?” Fractional leaders are experts at quickly integrating into teams and managing multiple product lines. They focus on high-impact areas and don’t need to be in the office full-time to add significant value.
• “Isn’t it better to wait for a full-time hire?” Waiting for the "right" moment can lead to months or even years of missed opportunities. A fractional leader can lay the groundwork, build processes, and help recruit the right full-time leader when the time comes.

“Isn’t fractional leadership just for finance or marketing?” Fractional roles are expanding beyond Level 1 functions like finance or marketing. Companies are increasingly seeing the value of fractional product leadership to bring in expert talent without full-time costs.

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Rethinking Level 2 Fractional Roles

Founders today have more options than ever when it comes to scaling their teams. By embracing fractional Heads of Product and other Level 2 roles, startups can accelerate growth, reduce operational bottlenecks, and ensure product alignment with customer needs—all without the overhead of full-time hires. It’s time to rethink old habits and leverage the benefits that fractional leadership offers across these critical functions.

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