Fractionals United Blog

Saturday, June 3, 2023 It started as a typical warm sunny day in Austin as Jane woke up with the sun to start the day. Jane is an entrepreneur CEO who started her consumer product goods company right here in this kitchen where she is brewing her coffee. She has fought hard over the past few years through all of the changes in the pandemic and is now on track to beat every sales forecast the company has set, and this is for the third quarter in a row. "That coffee smells amazing," Jasmine says, entering the kitchen. "I am going to need some of that before I even think about opening this laptop." Jasmine is Jane's partner and has recently left MEGA CORP after a 13-year career in finance and operations and is on an entrepreneurial journey of her own as a Fractional CFO. "Just pouring us both a cup," says Jane. "I know you like to start posting your content on socials early to get your name out there for your consulting stuff."  ...

As a small business owner or startup founder, you understand the importance of hiring the right people for your organization. It’s what enables you to grow, succeed, and ultimately achieve your goals. Yet, hiring can also be a challenging and costly process, particularly when it comes to hiring executives. Hiring your leadership team is a crucial decision that can catapult your organization's success, but can also burn through your runway. The impact provided by these executives can also start to diminish over time, making it difficult to determine whether hiring them long-term is worth the investment (salary, benefits, equity, bonus). In this post, we’ll explore what diminishing marginal utility is, how it applies to hiring executives, and alternative ways to consider executive hiring. What is Diminishing Marginal Utility? Understanding the concept of diminishing marginal utility is necessary to evaluate the long-term value of hiring new executives. At its most basic level, it...