Entrepreneur
Behind every successful business is a founder who saw an opportunity and had the right skills to execute their vision. Before they know it, they’re building a team, increasing their revenue and expanding their empire. The problem is that over half of all businesses fail in the first five years. Many of these failures are a result of not being able to scale the business beyond the startup phase.
Scaling a business is a major challenge that requires a mindset shift from the business owner. This is where many entrepreneurs struggle. In the beginning, the entrepreneur is deeply entrenched in every aspect of the business. This is impossible once the business reaches a considerable size. At this point, the entrepreneur must make the conscious decision to evolve from a hands-on founder to a strategic leader in the CEO seat.
Related: I Shifted From Founder to CEO 20 Years Ago and Never Looked Back — Here’s How to Successfully Make the Leap
1. Learn to shift from being tactical to strategic
In the beginning stages of every business, the founder has their hands in everything. Whether it’s sales presentations, product development or maintaining a social media presence, there is a high probability that the entrepreneur is involved. While this level of oversight is critical in the early days of the business, there comes a point where the founder needs to step back and take on a more strategic role. This is an important step toward growing and scaling any organization.
Founders tend to be focused deeply on the day-to-day operations of the business. This can be a distraction from other vital tasks such as long-term strategic planning, market analysis, resource allocation and attracting and developing talent. To shift your mindset from founder to CEO, it’s important to focus on the bigger picture. The best way to accomplish this is by transitioning from a doer to a delegator. This will free up time to be more organization-focused.
2. Separating your identity from the business
This is likely the most difficult part of scaling a company and growing into the CEO role. The reality is that many businesses exist because they embody the personality and charisma of their founder. This isn’t a bad thing. However, having your identity too intertwined with the business’s reputation can be harmful to the future success of your business. In some cases, investors, clients and talent might be wary of working with a business where the success of the organization is deeply tied to the personal success, whims and desires of the founder.
As a founder, you probably have a highly emotional attachment to the success of the business. As CEO, you’ll need to shift your mindset to one of strategic detachment, where you can demonstrate that you can make decisions that are not based on ego. In addition, as CEO, it’s your responsibility to make sure that the organization is embracing your shared vision.
Related: Can You Grow From Founder To CEO?
3. Incorporate sustainability and business continuity
In the beginning stages of any business, the founder is the glue that holds the entire operation together. If they become seriously ill or take their eye off the ball, the whole business falls apart. As a CEO, it’s critical to make sure your company can survive beyond you and that it can function even if you unplug for a month-long trip to a remote island.
The most important thing that CEOs can do is make sure they have people they trust in place to handle ongoing operations and ensure there are sustainable processes and systems that the team can rely on even if the business owner is unavailable. Moving to a more sustainable model is also critical for the long-term strategic success of the business when it comes time to sell the company or pass the reins on to another leader.
4. Shift from intuition to data-driven decision making
Entrepreneurs are known for taking big risks and making fast decisions based on a feeling or intuition. This is an extremely valuable skill that many founders possess. The reality is that their intuition often serves them well when they are in the weeds of the business. As the organization grows, you’ll naturally become removed from many of the day-to-day operations. From a 30,000-foot viewpoint, it will become more challenging to successfully execute decisions based on a hunch or feeling. This is where data-driven decision making will become valuable, allowing you to lead more proactively versus reactively.
In terms of risk, your decisions become amplified as your organization grows. Small businesses can often course-correct quickly from a bad decision. Bad decisions in a large organization can quickly cost millions of dollars. As a CEO, you’ll still need to take risks, but it’s better if they are calculated and based on reliable insights and data.
Related: Relying Solely on Your Gut to Make Big Business Decisions Could Cost You Your Career. Here’s Why You Need Data to Succeed.
5. Focus on professional development and growth
The skills that got you where you are today aren’t always the same skills that will continue to help you as your business grows. Shifting from the founder to the CEO role often requires investing in your own development and acquiring new skills. In addition to courses and personal development training, one of the best ways to continue growing in the CEO role is by hiring a professional coach to guide you and provide real-time feedback. They can serve as a sounding board and provide accountability and tough love when you need it.
The good news is that you aren’t on a unique journey. Every successful company on the planet reached a point where its founder needed to shift their mindset toward the critical role of CEO to drive continuous growth and success. It may not be easy, but it’s a challenge that only someone with the drive of an entrepreneur can achieve.
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