Once a startup is successfully launched, and the growth stage is in full swing, many changes structurally and philosophically can occur. The brainchild of an entrepreneur is something that needs to be nurtured, just like a human child, but once it is time to grow and strive for maturity, experts are often necessary to help the child blossom into their fullest potential. We previously discussed the timing of bootstrapping versus bringing in outside investors, and transitioning from a founder CEO to a professional CEO is similar in timeline.
Prosperity Isn’t Necessarily Painless
When it comes to nurturing a startup into a potentially large-scale business, it’s important to understand when your job as the creator is complete. Some founders have innate skills that allow them to retain a role of leadership within the companies they create. However, those entrepreneurs are the exception, not the rule. Just like rearing children, knowing when to let go of the reins and allow the growth stage of a business truly take hold, is a bittersweet component of watching something develop from infancy to maturity.
Trusting the Process
As a founder, being well-informed of what it is likely to take for your business to reach its highest potential is the best tool you can employ. By doing the proper research it is easy to understand that it is probable that you will need to step aside if your enterprise reaches the growth and maturity stages of development. Especially, since the alternative is likely that your business will reach a ceiling and become stagnant. As Noam Wasserman says in The Founder’s Dilemma, “In the world of corporate startups, four out of five founders are forced out by their boards.” Fortunately, an in-tune entrepreneur can avoid the pain of being pushed out of a leadership role by playing a part in succession planning. When it feels like you’ve done your due diligence as founder, be prepared to step back, let go, and watch your beautiful creation fly the coop. Freedom was always the goal anyway.
Print Reference:
Wasserman, N. (2012). The Founder’s Dilemmas. Princeton, New Jersey: Princeton University Press.
Hi Melanie,
I really enjoyed this post. You did a great job connecting the growth of a startup to the process of letting go and trusting others to take it further. The comparison between nurturing a business and raising a child was spot on and made the message relatable. I liked how you emphasized that stepping back is not failure but a natural part of growth. It takes real self-awareness for a founder to recognize when the company needs new leadership to keep progressing. You captured that transition perfectly and tied it nicely to Wasserman’s perspective on founder evolution.
Great post,
Conor