A company founder is the person who started the business. They came up with the concept, raised funding, hired a team, and developed a business plan. They created the company’s mission and vision.

As a company evolves, the need for a CEO becomes apparent. The CEO will oversee day-to-day operations, make important decisions, and work toward strategic goals. They will act as the face of the company.

A CEO can be hired by the founder or board of executives, but often, the founder takes over as the CEO. It’s a natural progression and it makes sense, but the founder will need to develop new skills to ensure the company runs smoothly. Read on to learn how to navigate the path from founder to CEO.

Developing the Right Skill Set

A founder must have a sense of vision, creativity, and innovation, which are all strong leadership skills. However, they must develop additional skills to move their companies forward. They must focus on the following essentials:

• Strong Communication Skills: A good leader is an effective communicator. They will actively listen to their teams by asking questions and requesting feedback. They should meet with teams often, explain end goals, and express their vision clearly and confidently.
• Flexibility and Adaptability: Regardless of the industry, most businesses live in an evolving landscape. A CEO must be ready to adapt to changes and challenges. They can come in the form of new technology, changes in market demands, and growing needs within the company.
• Confident Decision-Making: Founders are no strangers to decision-making, but as CEOs, they will find their decisions more focused on day-to-day operations as opposed to the greater company good. They must familiarize themselves with company needs on an internal level. They can use data to help guide outcomes.
• Learn Humility: Transitioning from founder to CEO takes some degree of humility. It’s easy to say, “I founded this company, I don’t need to deal with this.” A CEO must be willing to get their hands dirty and work with their staff to achieve their business goals.
• Develop Leadership Skills: A founder is already a leader, but different skills are required for CEO leadership. A good leader must recognize the strengths of their team members and delegate tasks accordingly. They must use their time wisely to ensure tasks are carried out efficiently.
• Strategic Planning: A founder sets their vision on long-term goals. A CEO must integrate a different strategic planning They must create short-term plans to support that goal. They must determine where they want to be within a certain time to ensure they are working towards their endpoint.

Overcoming Challenges

Founders often encounter common challenges when stepping into their role as CEO, including:

Time Management

CEOs may not focus on time management as they adjust to their new responsibilities. They may put off making important decisions. As founders/CEOs, they may exert their influence unnecessarily to deal with the overwhelming stress.

Founders can overcome this challenge by adopting a self-actualized view. A simple understanding of the areas that require focus will ensure they make timely decisions. They must adopt humility to learn not every task will be an easy one.

Understanding Departments

It may take some time for the founder to understand the departments in their company and how they work together. However, a knowledge of how teams collaborate will improve decision-making throughout the company. It will also help familiarize them with the existing company culture, and even develop a new culture.

Communication is essential in understanding departments. CEOs should not be afraid to talk to team leaders and members to learn their processes and collaboration methods. Doing so will improve decision-making processes and enhance a sense of trust and loyalty among employees.

Managing Stakeholder Relationships

The founder/stakeholder relationship is not always an easy one. Things can become even more complicated as the founder transitions to CEO. It can breed distrust and lead to differences in options.

CEOs with strong leadership skills will build strong relationships with stakeholders amidst company changes. They must communicate their vision to gain stakeholder support. They must keep stakeholders updated on new developments to build transparency.

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