Businesses can quickly outgrow the instinct-driven management of their founders once they start becoming entities of their own. What begins as a start-up owner’s brainchild will eventually become a complex machine requiring more attention and management across its entire structure.
It takes a large amount of effort on a founder’s part to be able to stay on top of everything, especially since the growing responsibilities can be overwhelming. This is one of the reasons why business owners consider hiring a CEO at some point in their entrepreneurship.
There are many functional benefits of appointing a CEO, especially when it is done to address what the business needs. If you, as a founder, are currently undecided on trying this in your company, here are four signs that say it might be time for you to hire one:
- You’re seriously concerned about your managerial skill.
Every leader is prone to self-criticism. While some business owners use it to dwell on insecurities, smart ones use it as a no-nonsense way of keeping themselves in check. Ask yourself—do you feel like you aren’t cut out for managing standardised details? Is the CEO position something you can’t grow into? If these questions trigger personal concern towards your abilities as a manager, you might want to consider letting someone else take the reins for a while.
- You’re spreading yourself too thin.
As a founder, most of your time and effort could already be going into your business. Trying to divide your attention over everything can significantly cut down your efficiency and competency as a leader. Consider whether you can afford to give up all your time for the business and whether delegating tasks would be a better option. Your contribution as a founder is unparalleled, so you should be committing yourself to tasks wisely. If you want to prioritise certain responsibilities over others, try to be open to someone else managing the business.
- You’re getting negative feedback for what you’re doing now.
The most alarming sign is when you’re actually receiving feedback that says you’re not running your show right. Management teams could be actively requesting change or the business itself might be in crisis.
- You’re just not inclined to do the work.
Simply put, you may find yourself unenthusiastic about assuming the tasks of a CEO once your start-up reaches the point of needing one. Try to determine whether you just want to sit back and focus on your business’s vision, or whether you are feeling pressured to accept the larger management position because of external factors. Remember that while you have responsibilities toward your business, you also have a responsibility to yourself. Many founders plan exit strategies early on in their career not only for efficiency’s sake, but also to consider their personal motivations.
It’s not easy to think of letting go of the reins of your business, but it’s a vital consideration that many founders face at different points in their career. Take a look at this case study to see how one business was able to organise their management with the help of myCEO.
Khosla, V. (2012, November 12). Signs It Might Be Time to Consider Hiring a CEO [Web article]. Retrieved from http://techcrunch.com/2012/11/11/signs-it-might-be-time-to-consider-hiring-a-ceo/