As a founder of a business, you have had to play many different roles such as sales, product development, customer service, marketing, finance, and everything in between. As your business grows, there comes a time when you need to step into the formal role of a CEO. This shift can be rewarding and challenging as it requires changing the structure of your business as well as your mindset and role within it.
Understanding the Difference Between a Founder and a CEO
Founders are the visionaries and creators who identify a need, develop a solution, and build a business from scratch. The founder has the idea and turns it into reality to set up the foundations of the company.
A CEO is focused on taking the vision to grow the business and make strategic decisions, managing people and guaranteeing long-term sustainability. A good CEO will ensure a strong company culture, long term strategic goals, and lead the organization in a way that aligns with the mission, vision, and values of the business. At a certain point, the founder must let go of the day-to-day to-do lists and zoom out into the role of CEO by taking on a more big-picture mindset.
Developing the Leadership Skills Necessary for a CEO
Being a CEO means being a leader and it is essential to develop strong skills to navigate the growing business and working with a team. To do so, you must first have a strong understanding of what the long-term vision of the company looks like and the values you want to prioritize. Your leadership style should reflect these values to ensure you stay true to the original mission of the organization.
As a founder, you likely spent time focused on the day-to-day operations of building your business, gaining clients, and achieving small goals. You were likely approaching your work more like a scientist testing and experimenting with different ways to achieve your vision. As a CEO, you need to develop strategic thinking and shift your focus to a long-term strategy. This means thinking about a five or ten-year plan and the necessary workback steps to achieve it.
Building leadership skills requires establishing clear and effective communication in order to align your team around the vision of the company. You will need to be able to convey your ideas to diverse groups of people such as clients, stakeholders and investors, as well as delegating tasks to your employees. If you are still in your founder mindset you likely are coming off a bit erratic and unfocused which is very difficult for others to follow or even support.. Keep in mind that communication also requires actively listening so you can be aware of to the needs and perspectives of the people around you doing the actual work. This skill will assist to ensure a positive company culture and model to the people supporting you how you want them to show up.
Delegating Effectively and Building a Strong Leadership Team
One of the biggest requirements for the transition from founder to CEO, is the need to delegate effectively. As a founder, you often only need to rely on yourself and take on full responsibility for every action and task. As the business grows and there are more tasks to accomplish, you need to be able to take charge and delegate tasks to members of your team so that you can focus on leading the organization and the road ahead. To do so effectively, hire employees that you can trust and build a strong team around you. Look for individuals who share your vision and bring their own expertise and perspective to help you grow.
“My secret to building my leadership team is to bring in folks that are far smarter than I am. I want to be able to learn from them and I am quite open about this. I am not threatened by being surrounded by smart and powerful individuals. They are there to support me because I am the one with the vision and mission they can attach themselves to. In return for their hard work and dedication I give them more and more autonomy and authority over the business we are building together and I always listen to their ideas and perspectives!” – Annalee Hagood-Earl, founder of Bash Creative.
Make sure the roles and responsibilities of each team member are clearly defined and that expectations are clear. This will guarantee accountability and allow the freedom for everyone to work independently as well as collectively. Remember that delegating does not mean micromanaging or abandoning your team. Provide support and guidance while empowering your team and allowing them the space to do their jobs.
Navigating the Emotional Aspects of Letting Go of Certain Responsibilities
Stepping into the role of CEO is a great achievement as it reflects the growth of your business. However, it can be hard to let go of tasks that may seem like second nature and certain aspects that you have managed since day one. There is often an emotional attachment to your work and stepping into your new role can be daunting.
Acknowledge and share the emotional aspects of your transition and the discomfort you may feel with the person you are delegating to. Feelings of loss are normal and reflect the hard work you have put into your business as well as its importance to you. To ease these feelings, redefine your new role in this task and your value to your business. Understand that your evolving role is a good thing, an essential thing, for your company’s growth.
As you begin the transition to CEO, celebrate the successes of your team and the progress of your company, even those you were not directly involved in. This will strengthen your company culture and acknowledge the growth of your team and business.
Aligning Vision and Strategy as You Scale Your Business
The primary responsibility of a CEO is to align the company’s vision and strategy to ensure success. As a founder, you may have had a smaller vision that changed depending on your circumstances. As the company grows, it is now your job to make sure the vision remains clear and that everyone on your team understands it and can recite it back to you.
Develop a clear and concise vision statement to guide your actions and business decisions. This will provide direction for your team to understand the broader goal they are working towards. Communicate this vision frequently to reiterate the importance of the work that you are doing.
With this clear vision, establish a mission with actionable goals and a strategic plan to follow. This is done by establishing priorities, identifying helpful resources, and acknowledging small wins that show your progress. Envision a clear path of how you want to get to your goal.
Embrace the Evolution
The transition from founder to CEO can seem overwhelming, but it is a sign of your success. It’s about letting go of the day-to-day hands-on work and developing the leadership skills to build a strong team and grow your business beyond what you thought possible. Your role as a CEO is focused on the long-term growth and sustainability of your business. Although there are challenges along the way, it is a deeply rewarding experience.
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