A quite hard truth I learnt in my career was from one of my previous Directors who was (and still is) a business owner himself, and I quote, he said, “take the emotion out of it.” As a founder (in my opinion), this can be one of the hardest things to do in business because “it’s your baby.” You’ve built it, grown it, and nurtured it. But as hard as it is to hear, the skill set that builds a business isn’t always the same as the one that scales it.
Being a founder doesn’t automatically mean you’re suited to being a CEO. The roles require different mindsets, skill sets, and approaches. And far too often, founders fall into the trap of becoming CEOs without realising when it’s time to hand over the reins. And far too often, founders fall into the trap of becoming CEOs without realising when to hand over the reins.
The Founder Mindset vs. The CEO Skillset
Notable founders like Steve Jobs at Apple (initially), Larry Page at Google, Sara Blakley at Spanx, and Arianna Huffington at The Huffington Post recognised that the skills required to create a business often differ from those needed to lead it as it matures. For instance, Larry Page and Sergey Brin brought in Eric Schmidt to run Google, Sara Blakley appointed Laurie Ann Goldman as CEO of Spanx, and Arianna Huffington transitioned leadership to Jared Grusd at The Huffington Post. These moves allowed the founders to focus on their strengths while enabling the companies to scale under experienced executive leadership.
The Founder Mindset
Visionary: Focused on innovation and long-term goals.
Passionate: Driven by a deep connection to the business’s purpose.
Risk-Taker: Willing to experiment and fail to bring new ideas to life.
The CEO Skillset
Strategic: Focused on operational efficiency and scaling growth.
Objective: Able to make data-driven decisions without emotional bias.
Managerial: Skilled at building and leading high-performing teams.
A Day in the Life: Founder vs. CEO
This table highlights how the roles differ in focus, with founders being more visionary and CEOs leaning toward operational and strategic management. These distinctions extend to key areas of the business, including product or service development, team member performance, and the strategic direction of the company.
| Founder Duties | CEO Duties |
|---|---|
Brainstorming and developing new ideas | Overseeing company operations |
Building initial product prototypes | Managing budgets and financial health |
Networking to secure investors | Leading high-level strategy meetings |
Recruiting early team members | Setting performance goals and KPIs |
Pitching the vision to stakeholders | Reporting to the board and investors |
Establishing brand identity | Monitoring market trends and risks |
Why It’s Hard to Let Go
For many founders, stepping back from the CEO role feels like giving up control over their dream. Emotional attachment is often the main reason, with founders feeling that “it’s my baby.” This deep connection makes it challenging to separate personal feelings from professional decisions. Founders might also cling to their original ideas, even when those ideas are no longer the best path forward. Furthermore, there can be significant trust issues, as relinquishing control to someone else may feel risky, particularly for founders who struggle with delegation.
The Value of Self-Awareness
Recognising your strengths and weaknesses is crucial for deciding whether to stay on as CEO or transition to a different role. Here are some tools to help:
Personality Tests: Tools like Myers-Briggs, DISC, or StrengthsFinder can reveal your leadership style and areas for improvement.
Professional Assessments: Engage with mentors or executive coaches to get an objective view of your capabilities and fit for the CEO role.
When It’s Time to Step Back
Here are signs that it might be time to bring in a CEO:
Outgrowing Expertise: The business’s needs surpass your current skills.
Emotional Decisions: You find yourself prioritising personal attachment over what’s best for the business.
Better at Starting Than Scaling: You thrive in the early stages but feel overwhelmed by the complexities of growth.
Diminished Enjoyment: Day-to-day management feels like a chore rather than a passion.
Stepping back doesn’t mean failure. It means you’ve built something so valuable that it needs specialised leadership to take it to the next level.
Working On the Business, Not In It
One of the most significant shifts for founders is learning to work on the business rather than in it. Trust me, it took me a while to truly understand what this meant and the profound impact it can have to scaling a business. While founders often immerse themselves in daily operations, stepping back allows you to:
Focus on long-term vision and strategy.
Identify new growth opportunities.
Delegate operational tasks to trusted leaders.
This shift enables the business to scale effectively while ensuring that your energy is directed toward areas where you add the most value.
Finding the Right Leader for Your Business
If you’ve decided to bring in a CEO, here’s how to find the right fit:
Identify Key Skills: Look for a leader with expertise in areas where you’re less experienced, such as scaling operations or financial strategy.
Cultural Alignment: Ensure the new CEO shares your vision and values to maintain the company’s identity.
Clear Transition: Set expectations for their role and create a transition roadmap or plan
- Set Boundaries: Clearly define responsibilities and allow the new CEO the autonomy to make executive decisions without interference. Respect their decisions.
Passing the Torch: The Art of Letting Go
Being a founder is a title you’ve earned for life. No one can take this away from you. Whether or not you stay in the CEO seat, recognising your role and strengths will allow your business—and you—to thrive. Leadership isn’t about holding on; it’s about knowing when to evolve for the greater good.