Breaking your income ceiling as a Fractional Director
The Value of Investing in Operational Support for your Business
When you’re thinking about finding support in your business in can be difficult to know what you need. If you are operating at strategic/director level you have a business that relies solely on you, trading your expertise for money, often on an hourly (or project) basis.
By its very definition that means that you have created a ceiling which you cannot break in terms on income without support. When it reaches this point, you have a couple of options:
· You could look to expand the business with employed staff, either at a support level or on a level with yourself to share workload.
· You could look at flexible, freelance options such as a VA or OBM (not sure of the difference? Read my blog about it here)
· You could bring on unique support designed to run the operational side of your business, act on your behalf with project management, operational implementation and management and act as a full back-office function for your growing business.
I know that it can be difficult to see the potential of this relationship, especially when there’s a lot of talk online about how virtual assistants can solve all your problems and make your life easier. The truth is that they can, but they need direction. The benefit of working with a company like Goldspun Support is that they operate above even where an OBM can work – no direction needed, just communication and involvement.
Let’s look a live example
Our client, Client J, engaged Goldspun Support for 32 hours per month of dedicated operational support to streamline operations and drive growth. By leveraging our services, the client gained access to high‑level, strategic support at a fraction of traditional or employed costs, allowing them to focus on core business activities while we managed the operational details.
Cost vs. Charge Breakdown:
Our Cost: We delivered operational support at £50 per hour.
Client Charge Rate: Our services are provided on a white‑label basis and billed to clients at a median rate of £200 per hour.
Gross Margin: This pricing structure creates a profit margin of £150 per hour (i.e. £200 charged minus £50 cost).
For a monthly commitment of 32 hours, this results in:
32 hours x £150 = £4,800 in monthly gross profit.
Because, at Goldspun Support, we have 16 years’ experience in project management, over 16 years’ experience in marketing at a micro, small and corporate level and over a decade supporting the back office function of a range of businesses across many industries we know exactly where and how you need help.
You be confident in trusting us to handle client meetings (with or without you), to write emails, pick up deadlines and project plans. You are not adding an additional person to your workload you are adding someone that can replace you when your time is better spent elsewhere.
Our model—with a profit margin of £150 per hour—demonstrates that strategic OBM support not only improves efficiency but also significantly enhances profitability. For instance, the £4,800 monthly gross profit from Client J’s engagement scales quickly as more hours or additional services are integrated.
Other Income Opportunities
In addition to the hourly margin profit, our client leveraged our white‑label services which incorporate an average markup of 16%. By offering additional services to their client roster that they previously would not have offered (in this case digital marketing management), they were able to sell a package of support to the client and make a profit on these without any additional work from them. This additional premium not only reinforces our value proposition but also further boosts overall revenue, positioning our clients as premium service providers in their markets.
With white‑label solutions, businesses can extend their service offerings under their own brand. According to industry reports, companies that adopt white‑label strategies can experience a revenue uplift of up to 15%–20%, as clients perceive the services as a seamless extension of the brand.
Why is now the time for Fractional Directors?
The gig economy is rapidly expanding in the executive space. Recent figures show that the number of LinkedIn profiles mentioning “fractional leadership” in the UK has increased significantly, as companies look for flexible, cost‑efficient leadership solutions. This trend is driven by the need to maximize operational efficiency without the overhead of full‑time salaries.
Research from the CFO Centre suggests that companies leveraging fractional leadership models report up to a 30% improvement in operational efficiency. Outsourcing routine tasks enables senior leaders to concentrate on strategic initiatives that drive growth.
To Conclude
High Profitability:
With a margin of £150 per hour and a monthly gross profit of £4,800, investing in operational support translates directly into improved bottom-line results.Time and Resource Optimisation:
By outsourcing administrative and operational tasks, fractional leaders can dedicate more time to strategic decision‑making and core business growth.Scalable and Flexible Solution:
Our model allows companies to scale support according to fluctuating workloads without committing to full‑time executive costs—a significant advantage in today’s fast‑paced market.Enhanced Brand Positioning:
The white‑label approach with a 16% markup enables clients to offer a comprehensive suite of services under their own brand, boosting customer trust and market competitiveness.
Investing in OBM support from Goldspun Support not only streamlines operations and reduces administrative burdens but also delivers significant profit margins and operational efficiency improvements. In Client J’s case, our cost‑effective model generated a gross profit of £4,800 per month, while the added white‑label markup further enhanced revenue. With industry trends showing an increasing reliance on flexible, part‑time leadership solutions, our OBM support represents a strategic investment that delivers measurable financial and operational benefits.
If you’re looking to boost efficiency, drive profitability, and scale your operations with expert operational support, let’s connect. Plus, discover how our tailored white‑label solutions can help you achieve the strategic advantage your business deserves.