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Ask HN: How to transition out of startup I founded?
5 points by throwawaynum1 3267 days ago
I started a company (sole founder) a few years ago. We were mildly successful, and have a handful of employees and are breaking even.

We never raised money, and I think the company could continue to grow organically on its own, growing revenues maybe 10% a year. As CEO, I'm taking an under-market salary for several years, which has taken its toll on me and my family.

The company is in a position where the team in place can probably grow it organically, and have a nice, comfortable workplace.

I do not think there's much opportunity to raise funds, and even if we did, I think traditional investors would be disappointed by the returns. Worse, it would lock me in for a few more years. I also don't know if anything I do personally is going to change the trajectory of the company. I've certainly tried.

I'm a fairly senior developer, and live in an area where tech jobs are easy to come by. I would like to keep my company going (giving most of my salary back towards growing the business + improving staff salaries) but I'd like to go back to a more normal role with market pay + benefits.

Trying to figure out how to navigate this without disrupting my company or scaring off future employers. Would love any advice or feedback.

2 comments

Just be upfront about why you are leaving. One option might be to make it an employee owned company, with the current team gradually diluting out. Have bonus incentives for anyone who can bring new business. Some huge companies like SAIC have been built this way. Maybe hire a part time ceo aka a new sales & marketing person.

My guess is that if you are a developer, then you probably aren't focusing enough on sales with your ceo hat on.

This is an interesting idea!

I probably didn't focus on sales as much as another CEO might, but I tried my best. Sometimes that's just not good enough I guess!

Oops, past the edit window. *diluting you out.
Have you grown and developed other leaders in the company? I think this is the answer to any "how to transition" question. Is there someone whom you have groomed and wants to take over?
There are no obvious "CEO" candidates (and the company is not large enough to attract new CEO talent). I have 3 director types who can run day-to-day.

I'd imagine I could have a weekly 1 hour meeting via slack or phone and they'd be able to handle it.