So at a recent networking event I was asked “How a Fractional Managing Director is Different from a Business Coach or Non-Executive Director”
Trying but failing in my elevator pitch, I tried to explain that if you’re running a small or medium-sized business and you’re passionate about what you do, you might find yourself thinking, “I love my business, but I didn’t sign up for all the headaches that come with running it.” anecdotally I have heard this often. Many founders/ entrepreneurs start a business because they’re skilled in their trade or industry, but as their company grows, the challenges of scaling, managing teams, and strategic planning often require expertise beyond their original skillset, they don’t have time to manage or just plainly they have no interest in it.
This is where many business owners look for help. You may have heard of business coaches, non-executive directors (NEDs), or even Fractional Managing Directors (FMDs). But what’s the difference, and why might an FMD be exactly what your business needs?
The first key difference is the level of involvement. A Fractional Managing Director (FMD) doesn’t just offer advice; they step in to work with the founder/owner and lead the business. An FMD typically works with your business for a portion of the time (often a few days per week or month) but takes responsibility for driving your business forward as if they were a full-time MD. They will execute strategies, manage teams, and take on day-to-day operational decision-making.
In contrast, business coaches provide guidance and mentorship. They will ask questions, help you think through problems, and offer advice on how to achieve your goals, but they stop short of actually running your business. They’re more about helping you grow personally and professionally than directly implementing changes themselves.
Similarly, NEDs are advisory figures. They typically attend board meetings, provide high-level strategic input, and hold the business accountable for decisions. A proactive NED will hold the leadership to account. However, generally, they are not involved in the day-to-day operations or the execution of business strategies. Their role is limited to oversight rather than direct leadership.
An FMD focuses on getting things done. They’re not just there to offer suggestions—they roll up their sleeves and get involved in execution. This is particularly important if you feel you don’t have the time, energy, or skills to manage the scaling of your business. They’ll take responsibility for driving growth and implementing the changes needed to help your company thrive.
In contrast, business coaches will work with you to set goals and improve your own abilities to run the business. Their role is more about helping you grow as a leader, which is valuable but might not be what you need if the business itself requires immediate hands-on leadership.
NEDs, while experienced and knowledgeable, often don’t have the time or inclination to implement changes themselves. Their role is about ensuring you’re following a sound strategy and helping guide your decision-making at a high level.
A Fractional Managing Director can have an immediate impact on your business because they focus on both strategy and execution. Their involvement is designed to drive rapid improvements, whether that’s restructuring the business, improving operations, or leading a growth initiative. FMDs are there to fill the operational gap, especially if you, as a business owner, either don’t have the interest or ability to manage these tasks yourself.
Business coaches, on the other hand, often take a longer-term approach. Their aim is to help you become a better leader over time. While this has its merits, it might not produce the fast results you need if your business is at a crucial stage of growth.
NEDs are useful for providing an external perspective, but their impact is often slower and more indirect. Since they’re not involved in day-to-day operations, the changes they help initiate may take longer to materialise.
If you’re a business owner who loves what you do but feels overwhelmed by the demands of scaling, a Fractional Managing Director could be the perfect solution. They offer hands-on leadership, focusing on execution and achieving results quickly. If you don’t have the time, expertise, or desire to handle the operational side of growth, an FMD will step in and do that for you, freeing you up to focus on what you’re passionate about.
While business coaches and NEDs certainly have their place, the hands-on, results-driven approach of an FMD could be just what your growing business needs to reach the next level.