Yesterday, I had an insightful discussion with a potential client. They’ve recently secured funding that provides a runway of 18 to 24 months. That’s a healthy timeframe to develop a proper strategy and position the business for its next funding round.
During the conversation, one question stood out: “Do we need a COO at the moment? If so, should it be a fractional role or full-time?”
At first glance, it’s tempting to say, “Yes, you need a COO.” But when you dig deeper, the answer isn’t always straightforward.
Do Funds Automatically Mean a COO is Required?
Having financial stability for 18-24 months doesn’t necessarily mean a Chief Operating Officer (COO) is an immediate requirement. Even if their investors recommend hiring a COO, the necessity depends on the business’s short-term and long-term objectives.
In this case, the founders’ short-term focus was:
- Find the first key accounts.
- Ensure these initial clients are happy.
Achieving these goals might require operational improvements, particularly in aligning sales and production teams to improve communication and delivery. However, these are solvable challenges that don’t always require a full-time COO.
When Is a Fractional COO Enough?
If the main goal is improving a specific process, such as fine-tuning communication between sales and production, a fractional COO or a consultant on a project-based contract can be sufficient.
This is an important lesson for every business: use your first clients as an opportunity to refine your delivery process. Don’t wait until you have a full client pipeline to address inefficiencies. Fixing issues early saves time, money, and customer trust down the line.
A COO’s Role Is Bigger Than Fixing Processes
A COO isn’t just a problem-solver for operational bottlenecks. While process improvement is part of the job, the true value of a COO lies in their ability to think strategically and plan for growth.
A great COO focuses on:
- Developing and optimizing processes to scale efficiently.
- Aligning the hiring plan to match business growth.
- Balancing supply and demand while preparing for expansion.
- Designing onboarding processes for new team members.
- Overseeing daily operations to ensure alignment with business objectives.
These are just a few of their potential responsibilities.
More importantly, a COO acts as the bridge between teams, ensuring smooth communication and delivery across departments. They don’t just fix processes. They prepare the business for sustained growth.
Should You Hire a COO Now?
The answer depends on your priorities:
- If you’re focused on short-term goals (like landing your first key clients and refining processes), a fractional COO or consultant might be the better option.
- If you’re planning for long-term growth and need a strategic operator to oversee hiring, scaling, and cross-functional alignment, then a full-time COO could be a worthwhile investment.
Remember, even fractional COOs need time to make visible improvements. Their impact doesn’t happen overnight.
Final Thoughts
A Chief Operating Officer can be a game-changer for any business but only if their responsibilities align with the company’s immediate and long-term needs. Whether fractional or full-time, the COO should be a strategic middleman who ensures smooth communication, delivers results, and prepares the business for growth.
Take the time to assess your current needs and objectives before deciding. Not every business needs a COO today, but every growing business will need someone to lead its operations tomorrow.