2018-03-20 14:55:39 Managing People English Hire a CEO when you want to help improve the growth of your small business or you need to change the direction of management in order for... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2018/03/Entrepreneur-Interviews-A-Candidate-To-Take-Over-As-A-CEO-Of-His-Start-Up.jpg https://quickbooks.intuit.com/ca/resources/managing-people/ceo-growth/ When is it Time to Hire a CEO?

When is it Time to Hire a CEO?

4 min read

When it’s time to hire a CEO, choosing the right candidate can help take your business to the next level. A new CEO can improve employee morale, bring in valuable industry experience, and inject positive innovation into your business. If you want your business to grow as quickly as possible, you should try to put the ideal person at the top of your organization to help your business knock your financial goals and growth expectations out the park.

Do you lack the professional business skills? Would you rather focus on a different area of your business? If the answer to either of these questions is yes, then choosing a new CEO can be extremely beneficial to your company. You can ensure the leadership of your organization strives to push your company’s growth forward by hiring a qualified candidate. Your new CEO can foster fresh ideas for future products, and serve as a thought leader for your business. Although you are more than capable of running your business, there are several telltale signs it might be best for your business to start looking for a chief executive.

Do You Lack Experience for What Lies Ahead?

You are the entrepreneur who started your business, so it’s obvious you have brilliant ideas for your company, but a lack of experience can stop you from transforming your great ideas into actions that help your business skyrocket. A CEO with executive management experience understands your industry, and knows how to develop new ideas and follow through on decisions.

Hiring an experienced CEO puts a professional face and reputation in front of both your investors and shareholders, which gains their trust and builds their confidence that your business will continue to grow. The insight an experienced CEO brings to your company gives you a good idea of what works in your industry, and this knowledge keeps your business on an upward path. Using the tactics or strategies of a new CEO can help your business easily overcome certain issues the CEO conquered with previous companies.

Do You Want to Shift Your Focus?

Running the day-to-day operations of your business may be a breeze for you, but if you’re more interested in other areas, such as product development or marketing, then hiring a CEO gives you time to focus on your desired area of interest. While your CEO handles daily business tasks, you are free to develop new ideas or create innovative products.

Shifting your focus from the day-to-day operations of your business allows you to improve employee morale, transform your company culture, or bring a fresh perspective to dated practices. You can make your business more successful by handing the daily reigns of the company over to the CEO, while you use your strengths to improve weaker areas of your business.

Does Your Business Need a Clear Leader?

You should establish a clear leader to convey the company’s expectations and operations. This can help you eliminate confusion among employees about company-wide goals. The CEO can help guide your employees and guarantee management decisions send a positive message to your organization. Your selection also tells investors that you have recognized your company needs a change and you intend to bring an experienced professional on board to improve your leadership. Placing a clear leader at the top of your management team helps confirm the pecking order.

Do You Need to Encourage Growth?

As an entrepreneur, you understand Innovation is important to secure success and encourage rapid growth. If you’re focused solely on daily business tasks, you may lose sight of the importance of developing new ideas that ensures your business continues to grow. Your business needs to adapt quickly in your industry in order to survive or thrive, and hiring a CEO with a solid vision for your business’s future can propel the success of your company forward.

The fresh perspective of a new CEO provides an inventive way to promote your brand. Whether you need a professional face for consumers or investors, an experienced CEO gives your business a tried and proven person who knows how to maximize your growth.

Should You Hire an Internal or External CEO?

Internal candidates know and understand your company’s culture, but to maximize your growth, you may need to hire an external candidate to shake things up using a new perspective for your company’s future. Unlike choosing from internal candidates, an external CEO gives you a larger talent base to choose the perfect person to run your business. External candidates offer a fresh insight into current company practices and policies, while internal candidates have worked for the company for a period of time, so their decision making and problem solving may be influenced by previous workplace solutions.

When considering a potential CEO, you should ask if the candidate:

  • Can the CEO fit into your company’s culture?
  • Does the CEO understand your industry?
  • Does the CEO have excellent communication and management skills?
  • Can the candidate develop new ideas and execute decisions quickly?
  • Does the CEO brings a goal-centered focus to daily operations?

Hiring a CEO gives your business the opportunity to make changes in leadership to take your business to the next level. It may be time for your small business to bring someone onboard if you are more interested in other areas of your business or you lack the business experience to make difficult decisions. You should consider hiring a CEO when your business needs a fresh start or you feel your innovation is at a standstill.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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