The Fractional Formula That Generated $240K in Year One
When Arum left her full-time nonprofit job to start consulting, she had a plan. She had expertise in multiple areas, a strong network, and confidence that work would "flow in" naturally.
Eleven months later, she's generating over $20,000 per month. But the path there looked nothing like her original plan.
The Painful Reality Check
"After the first three months, I had tons of conversations and encouragement, but no actual money coming in," Arum recalls. "Something wasn't working."
Her initial approach - offering everything from strategic planning to board development to HR services - left potential clients confused about when to call her. As she puts it: "It was hard to know what to come to me for because if somebody had a strategic planning project, they'd think of me, but they'd also think of five other people in their network."
The Niche That Changed Everything
The breakthrough came when Arum noticed a pattern in her networking conversations. People consistently latched onto her HR expertise because it was unique in their nonprofit networks.
"There are lots of executive coaches and strategic planning consultants and fundraising consultants, but there are fewer people who are experts in HR for nonprofits," she realized.
This insight led to a complete business pivot. Instead of competing in crowded markets, Arum positioned herself as the go-to HR expert for small nonprofits - a role with high demand and limited supply.
The Revenue Reality
Today, Arum's business generates consistent monthly revenue through three service offerings:
Fractional HR (Primary Revenue Driver)
3-4 clients at $4,500/month each
Provides $16,000+ monthly recurring revenue
Starts higher in first 3 months, then adjusts to $3,000-4,000
Transitions to maintenance mode at $1,000-2,000 after 6-7 months
Project-Based Work
3-4 short-term projects running simultaneously
$3,000-6,000 per project over 1-2 months
Specific deliverables like performance review systems or handbook updates
Retainer Services
Starting at $1,000/month for up to 5 hours
"Use it or lose it" advisory support
Easy revenue with minimal time investment
Total Monthly Target: $20,000 (Annual Goal: $240,000)
The Fractional Advantage
The fractional model provides the stability that traditional consulting lacks. As Arum explains: "The fractional is definitely the biggest chunk - the chunk I don't have to worry about because I don't have to constantly do business development."
This recurring revenue foundation allows her to be selective about additional projects and focus on work she enjoys rather than scrambling for the next contract.
Business Development That Doesn't Suck
One of the most refreshing aspects of Arum's approach is her attitude toward business development. She focuses on activities she genuinely enjoys:
Maintaining her existing network
Contributing to consulting groups (giving, not just taking)
Occasional LinkedIn posts
Building genuine relationships
"I focus on the business development that I like to do, that I want to do regardless of the outcome," she says. This approach becomes increasingly effective as word-of-mouth referrals grow.
The Mindset That Makes the Difference
Arum identifies a crucial distinction between consultants who succeed and those who struggle: commitment level.
"There's a difference between people going into consulting thinking 'this is my full-time business' versus 'I'm burned out and trying this on the side while I figure things out,'" she observes. "If you have that mentality of just exploring, there isn't as much motivation to do all the hard business development work."
Key Takeaways for Fractional Consultants
Niche ruthlessly - Find the intersection of high demand and low supply
Message around problems - Clearly articulate the specific challenges you solve
Commit fully - Half-hearted business development yields half-hearted results
Build recurring revenue - Fractional work provides the stability to be selective
Play the long game - Word-of-mouth referrals compound over time
The Unexpected Expansion
Interestingly, niching down to HR has actually opened doors for Arum to expand back into other areas like strategic planning. "You can niche down really small to help you get going, but then you don't have to stay there," she notes.
Once established in her niche, her network began approaching her for other services - proving that sometimes the best way to expand is to first contract.