So you’re the CEO (CFO, CTO and Chief Design Officer too) of your company. Your name is in every box on your org chart. As you start to expand and bring in others to fill different roles, you will have to make a decision, particularly if you are planning on, or already in, the process of fundraising.
Because if you bring in money, one of the first things that often happens is that the CEO gets replaced. I’ve seen it happen so many times I don’t even blink anymore. But start-ups and entrepreneurs should. Because it’s probably the last thing on your mind. And it’s probably a very hard idea to digest. No one wants to be pushed out of their own company.
So before you go racing down that road to potential self-oblivion, here are a few ideas to keep in mind:
Pick one job and own it. What do you most love doing in your company? If you’re designing clothes or other fashion items then you’re probably extremely creative at it and no one can replace you — you’re the idea generator or the CDO (see above). Prepare yourself to step aside and bring in someone else to be CEO or President. With the blessing of your funders if necessary.
Put your ego on the back burner. Same as above — pick what you do best and love to do and step aside and let your company blossom with the help of the team you bring on.
Make sure you have an ironclad contract that keeps you in the cash. Your lawyer, a business savvy lawyer (many lawyers are not good business people so make sure yours is), should have you so integrated into the company by way of the operating agreement, that no matter what happens down the road you are protected. They can make you go away but not without compensation. Have another lawyer work with the first one to make sure your IP (intellectual property) is protected (preferably in your name) as well. That way you can take it with you.
Sandra Holtzman teaches CEO 035: Licensing.
She is the author of Lies Startups Tell Themselves to Avoid Marketing.