James: Let’s just kick off with, what is the fractional integrator?
Lloyd: Sure. So, perhaps let’s start with what an integrator does.
An integrator will oversee your projects, daily operations; they’ll make sure your trains run on time. And they can be a proxy for your founder or the COO, they will manage your team. And they will continually identify ways to improve processes. So that’s what an integration does. But they will typically be a permanent member of staff, like a COO. They’d have an expectation to be quite well remunerated. And they would want a stake in your business, generally. So that’s probably the downside of hiring an integrator, apart from them taking care of your business.
So this is where a fractional integrator service comes in. They will do this on a fractional basis. They will take care of your clients, they will take care of other clients on a fractional basis. And so this enables you to have someone operate your business at a reduced cost without the need to employ someone who may cost too much or want equity in your business. And you can typically expect a fractional integrator for the cost of 4K to 8K USD per month, depending on scope.
James: Yeah, that’s a really good metric to throw out there, because I work with plenty of people who are in that sort of six- to seven-figure revenue region. And for them, an overhead of a COO or a general manager is going to be too heavy. They would normally have to pay $100,000 to $180,000 a year. And as you said, that person will almost always ask for a slice of the action. And they can be amazing, and they can be pivotal to the business. But they can also be difficult to make changes if they don’t work out, or they can chew through staff, they could cost a lot of money if you need to buy them out or exit them. If they’re Westerners, of course, you have higher wages, and payroll tax, and superannuation and legal obligations, etc., versus just hiring service.
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