Startup CEO Succession

First, you need clarity on some big, personal questions to know how to approach the rest of the CEO transition.

Why did you start your business? What are you really meant to be doing? Who are you, deep inside? And, what might you be running away from?

Next, you must look at the emotional aspects of leaving the company you founded.

We’ll look at the common fears and anxieties that founder CEOs face, such as fear of losing identity, concerns about the company’s future, and the uncertainty of what lies ahead.

We will discuss strategies to accept and manage these fears, which are a natural part of the process.

Once you have found clarity on what prompted you to consider stepping down and looked at the fears that might be holding you back, you’ll need to look at the practical circumstances of your life.

How strong is your skillset, and what does the business need? How sound are your personal finances? How will stepping down (or staying in your job) affect your family?

Then, you must examine the critical factors and considerations involved in deciding to step down, starting with the importance of being purposeful.

This also includes assessing different options available to you, such as returning money to investors or selling the business.

You must make a decision you are confident in, regardless of what you decide to do.

Once you make a decision to step down, you’ll need to choose how to share it with other people, starting with the board, in a way that maintains trust and optimises the timing of the transition.

Trust at the board level is one of the key drivers of the success of any CEO transition, so the conversation with the board should be approached carefully.

It’s important to choose a successor who aligns with the company's vision and culture.

You must identify potential candidates, evaluate their skills and leadership styles, and consider both an internal and external appointment.

To ensure a smooth handover you must clarify your responsibilities and get out of the way of the new CEO to avoid undermining them.

At the same time, it’s important to think through legal and financial considerations of the transition, such as rebalancing the cap table and negotiating the exit package for the outgoing CEO.

Finally, you need to decide how to break the news to the world and say goodbye to the team you led for years.

After you step down, you can explore the opportunities and challenges that lie ahead for you.

However tempting it may be to rush into the next stage of your professional life, this transition will benefit from slowing down and reflecting on what matters to you in life and where you want to take your career next.

Having an honest, clear, consistent answer will be helpful, although you certainly don’t have to tell the entire story to anyone asking.

Finally, to choose your next professional step with confidence, read through the stories of several founders who stepped down as CEOs to become CxOs, get a corporate job or go freelance.