When Should I Hire a Fractional COO? 5 Signs Your Business is Ready

Running a fast-growing company is exciting, but it’s also overwhelming. Many founders hit a stage where sales are climbing, opportunities are opening up, but behind the scenes things feel messy. Inventory piles up in the wrong places, cash flow feels tighter than it should, and the team is working harder than ever without getting ahead.

That’s when the question comes up: “Do I need a COO?”

For most emerging and lower middle market companies, hiring a full-time COO isn’t realistic. It’s a big fixed cost, and often more than the business can support. That’s where a fractional COO comes in senior leadership and operational expertise, but flexible and scaled to your business stage.

So how do you know if you’re ready? Here are five signs.

1. You’re Growing Fast, But Operations Can’t Keep Up

Rapid growth is a blessing and a test. Suddenly the systems that worked at $5M in revenue don’t cut it at $20M. Orders are delayed, communication is breaking down, and the founder is pulled in a hundred directions.

A fractional COO helps install the processes, accountability, and systems that allow growth to be sustainable. Instead of being reactive, your team gets proactive.

2. You Don’t Have Visibility Into Your Numbers

It’s hard to make good decisions when you don’t trust the data. Many founders operate without clear reporting on:

• Inventory by SKU.

• Cash flow tied to purchasing.

• Margins after deductions and freight.

• Forecasts by channel (retail, DTC, Amazon, distributor).

  
  

If you’re making million-dollar decisions in the dark, you’re flying blind. A fractional COO builds dashboards and reporting structures so you always know where you stand — and where you’re headed.

3. Cash Flow Feels Tight - Even When Sales Are Up

This is one of the most common red flags. Revenue is growing, but the bank account doesn’t show it. That usually means cash is trapped in inventory, payment terms aren’t optimized, or purchasing isn’t tied to a forward-looking plan.

A fractional COO builds integrated demand forecasts and cash flow models that align sales, finance, and operations. That way, you know exactly how much to order, when to order it, and how to protect liquidity while still supporting growth.

4. The Team Needs More Structure and Accountability

Fast growth often leads to a “just get it done” culture. It works for a while, but eventually execution becomes inconsistent, and the team feels stretched thin.

Frameworks like EOS (Entrepreneurial Operating System) and OKRs (Objectives & Key Results) bring structure and alignment. A fractional COO helps implement these, ensuring everyone knows the priorities, who owns what, and how success is measured.

This isn’t about bureaucracy it’s about creating clarity so the team can move faster with less friction.

5. You’re Preparing for Fundraising or Distribution Expansion

If you’re planning to raise capital or expand nationally (retail, foodservice, or with distributors like KeHE or UNFI), investors and partners will expect discipline. They’ll want to see:

• Credible forecasts.

• Reliable reporting.

• Strong margins.

• Operational readiness for scale.

A fractional COO makes sure you’re investor-ready and distribution-ready. That builds confidence not only with outside partners, but also within your own team.

The Bottom Line

Hiring a full-time COO is a big commitment. But hiring fractional COO support gives you flexibility: senior leadership when you need it most, without the overhead of a permanent executive hire.

At Kedia Consultants, we partner with emerging and mid-market companies ($5M–$100M revenue) across food, beverage, beauty, and wellness. We embed into teams to simplify operations, strengthen financial and inventory planning, and build the structure needed for fundraising, distribution, and sustainable growth.

If you’ve recognized yourself in any of these signs, it may be time to explore fractional COO support.

→ Ready to talk? Let’s connect.