Many small business owners tend to think of themselves as CEO but sometimes help is needed. As a founder, there comes a time in your company’s growth trajectory when you need to hire someone from the outside to take charge and take the company forward. Knowing when to step away from a company can be an incredibly difficult decision to make but it is better for founders to make this decision on their own rather than have their board tell them they are hiring someone whether the founder(s) is on board with that decision or not. There are numerous questions that arise such as should all founders be on board, how do founders retain control if and when a new CEO is taken on board and why should businesses even consider hiring professional founders in the first place?
Why do founders often fail as CEO?
Unfortunately, sometimes working with founders is not always easy. Founders are unreasonable and can hinder the good execution of the company especially when it becomes large enough and requires structured management. It is not always possible to retain founders as a CEO and the management team usually indicates when and why a business needs a new professional CEO. Sometimes new recruits may not want to join and old hires become anxious to leave and move on exhibiting disengagement and may approach the board requesting a change of leadership.
When should a founder leave?
With the growth of the company, a founder’s job undergoes a change in keeping with the needs of the growing company. All of a sudden a founder is faced with the challenge of establishing standard procedures and managing a large number of employees. In order to remain successful, you must be passionate about that kind of work as well. Ask yourself whether this is the kind of work you see yourself doing in the future. Some founders would rather be building products and articulating the vision but it is necessary to derive satisfaction from the nuts and bolts of building a company as well. A CEO needs to be passionate about leadership, management, and organizational processes as the company scales. If you as a founder find that all of this and more is not something you would like to be involved in, then it is time to gracefully step aside and bring in a professional who will take charge and take the company to the next level.
Why should founders hire a professional CEO?
There are numerous reasons why smaller businesses should consider bringing in outside expertise in the form of a CEO.
- You lack critical business experience: Sometimes founders may possess the unique skill or craft to start up a business but may lack the expertise required in order to scale it into a large company. Hiring a professional CEO with vast business experience allows you to pass on some of the critical decision making pertaining to strategic operations and developing new strategies to help drive your bottom line.
- You want to have a specific focus: As owner of a small business startup, you wear a number of different hats that can divert you from favorable business activities. If you are one of those owners or founders who prefers to focus on a single aspect of the business such as operations, marketing or production, it might be worth hiring a CEO to manage all other critical areas of the business.
- You want to scale but lack the time to innovate: Business growth relies heavily on innovation and strategic expansion. In a lot of cases, business owners and founders spend so much time working in the business that they have little or no time to spend on the business. Hiring a CEO allows founders to rely on someone else to formulate strategy for growth. In addition, they can assist in coordinating critical action and help the business scale.
How to hire a CEO?
We live in a world where we are connected to everyone across the globe by way of technology. The biggest challenge faced by founders and owners alike is looking in the right places and narrowing down the search to the right candidate. Here are a few pointers to help you find the right CEO for your business.
- Seek professional assistance: There are numerous different entities that specialize in finding and vetting the right candidate for you. If you need help with finding the perfect fit for your organization, Applicant Tracking Systems can be extremely helpful in recruitment and can feed candidate information into HR software for when they become employees. At times like this CoffeeMug.ai is an AI-powered networking platform that seamlessly connects individuals, investors, and corporate leaders in the business landscape. In addition to helping the members on board explore innovative business opportunities, this global network provides 1:1 mentoring for entrepreneurs and assists them in finding the perfect candidates to fill C suite positions.
- Use your network: If you are a business owner, you have most likely interacted with other like-minded business professionals. Let your network know that you are on the lookout for a CEO and do not be afraid to ask for input from others who have been down this road before.
- Plan for the future you want: It is imperative to get all the necessary materials ready to hire your ideal candidate including your story, your vision and the values of the business. Since this person will be new to the organization and will be looking at the business and learning about it from a fresh perspective, ensure that you have a plan that will enable them to integrate smoothly into the company.
Bottom Line: Although CEOs are usually seen as a good fit for large companies, a small company CEO might just be right for the progression of your business and help you realize your vision for the company.
Coffeemug.ai is an invaluable platform for startups that provides a simple and easy-to-use interface for startups and small companies. With its wide array of features, Coffeemug.ai makes fundraising, decision making, recruitment advice, and a host of other issues easier than ever before by connecting them with the right people. The platform often works with entrepreneurs at an early stage, assisting them in achieving product-market fit and scaling beyond the first point of the scale.
FAQs
Q. What is a Founders’ Agreement?
A. A Founders’ Agreement is a document that governs the business connections of a company’s founders. Each founder’s privileges, duties, assets, and obligations are mentioned in the agreement.
Q. What makes a successful founder?
A. Founders realize that ideas are constantly developed, therefore they are adaptable, open-minded, and receptive to suggestions and guidance from others.
Q. What do founders have in common?
A. They are enthusiastic about the company and have a strong desire to succeed. They are capable of making difficult decisions. They provide the customer with exactly what he or she wants. They are forward-thinking individuals.
Q. How do you describe a founder?
A. A founder is a person who creates and starts a company or organization in the commercial world. The founder is usually in charge of defining the company’s mission and vision. A founder, in essence, transforms a firm from an idea to a legal organization.
