---
id: "framework-fractional-business-pillars"
type: "framework"
source_timestamps: ["§ 3. Do I need to set up my own business?"]
tags: ["business-setup", "operations"]
related: ["concept-minimum-viable-infrastructure", "action-calculate-burn-rate"]
steps: ["\\\"Revenue: Define pricing strategy (hourly", "monthly retainer", "commission", "or equity-based).\\\"", "Legal: Form a business entity (if needed) and draft standard client contracts.", "\\\"Finance: Establish banking", "invoicing", "tax setup", "and calculate cash burn rate.\\\"", "\\\"HR: Secure health insurance (marketplace", "COBRA", "client-provided)", "plan PTO", "and set up a solopreneur retirement plan.\\\"", "\\\"Marketing: Build foundational digital presence (website", "social media).\\\""]
sources: ["ecosystem"]
sourceVaultSlug: "hbr-seg-ecosystem"
originDay: 11
articleStem: "hbr-foci-63-fractional-work-questions"
sourceUrl: "https://hbr.org/2026/04/5-questions-leaders-should-ask-before-turning-to-fractional-work"
sourceTitle: "5 Questions Leaders Should Ask Before Turning to Fractional Work"
---
# Fractional Business Setup Pillars

Five key operational areas a fractional worker must address *if* they establish their own business entity (rather than only working part-time W2 roles). For each pillar, decide what to **tackle yourself**, what to **outsource**, and what to **delay** — the essence of [[concept-minimum-viable-infrastructure]].

1. **Revenue** — choose a pricing strategy: *hourly, monthly retainer, commission, or equity-based*.
2. **Legal** — form a business entity (if needed) and draft standard client contracts.
3. **Finance** — set up banking, invoicing, and tax structure, and *calculate your cash burn rate* (see [[action-calculate-burn-rate]]).
4. **HR** — secure health insurance (ACA *marketplace*, *COBRA*, or *client-provided*), plan *PTO*, and set up a *solopreneur retirement plan*.
5. **Marketing** — build a foundational digital presence (website, social media).

Apply this pillar-by-pillar via [[action-identify-minimum-infrastructure]]. Executing it presumes [[prereq-basic-business-literacy]].

**Enrichment / outside view.** The unresolved open question [[question-fractional-pricing-norms]] hangs off Pillar 1 — the source lists the pricing *options* but not which models are standard by industry/stage, nor how to convert a full-time salary into a fractional rate or value startup equity.