In the initial few stages of a startup, it’s common for founders to fill in for all C-suite responsibilities. However, as the company grows, it’s often the case that the duties are divvied out to other people. The question is, when is the right time to share the responsibilities and hire someone to fill an executive role? 

Though every company is different, here are some pointers to help you navigate the timeline to align with your goals:

Growth Goals

What are your goals for the growth of your company? Consider how quickly and how much you want to grow, how things are working today, and how much of the work you would be able to accomplish on your own to get from point A to B. If you’re unsure if you’d be able to handle the workload on your own, try to pinpoint where in that timeline you might start to struggle and where you can instead distribute the duties to someone else. However, if things are going smoothly, you’re growing, and you’re able to handle it, you don’t want to incorporate executive management too soon. There is value in the Founder being intimately involved in the business so that there is true understanding before handing over the keys. 

Size

As your company grows, say from 15 to 50, your departments will be growing as well. Each department will likely grow at different rates, and you can use that as a guide to determine what areas need leadership that extends outside of your capabilities. To continue growing, you won’t want to have to constantly divide your attention amongst your expanding teams. If your company’s progress begins to slow down, it might be an indication that you’re being stretched too thin.

The Search

There are three main components to the search for your C-Suite search: department, determining the experience you want in an executive, and the time needed to complete the search.

Department

You might have already made hires for VPs and Heads for your sales team and marketing team. However, as mentioned above, your departments are growing at different speeds. Your sales department might be growing faster than your marketing department. This might point you in the direction of looking for a CRO first. Certain departments might be prioritized to grow quicker, so it makes sense to hire accordingly. 

Experience Level

You will have to determine what qualities you want your C-suite executives to have. Typically, companies tend to think about their next stage in growth in terms of revenue as each stage will have its own unique challenges. If you are currently at $10M ARR, you might look for someone who has taken a company from $10M to $50-75M. These individuals will understand the issues that lie ahead and how to tackle them. You may also want to consider someone who has a diverse or different background from the current team that can bring a new perspective to your company. Consider what you want your executives to bring to the table when you embark on the executive search journey and if their goals align with yours.

Timeline

Depending on your approach and the desired experience level, the search timeline can vary, but it’s important to give yourself ample time to select the right person. Search firms can assist you through the process and give you a better understanding of timelines and market dynamics that you may want to consider. 

This guide is the start of a series that will go into detail about each individual C-suite executive.