Deciding when to step away from your startup can be one of the toughest decisions a founder has to make. So, how do you know if and when you should leave?
Founding and leading a startup from the ground up is an immensely rewarding yet challenging journey, and many founders have a tremendous amount of ownership over their startups.
Yet, it is possible that one day, you may find that your skillset no longer aligns with the company’s scaling needs. Knowing when to step aside and transition the leadership of the company can be one of the most difficult decisions a founder faces. Exiting a startup you created is bittersweet—it signifies the end of an era, but also potentially the beginning of an exciting new chapter, both for the company and you, the founder.
So when the time comes, the hard question to ask yourself is: Is it the end of the road, and what can I do to make a graceful exit?
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Why founders leave their startups
There are many reasons why founders decide to leave their startups. At different stages of the startup growth, the skills used to launch a startup into existence probably aren’t the same ones required to scale and sustain it. Some founders better serve as a visionary leader, rather than a day-to-day operator. But this mismatch is but one of the reasons why a founder may decide to leave their startup.
Founder feuds are another reason for a founder’s departure. Conflicts between co-founders can lead to irreconcilable differences that make it necessary for one or more founders to step aside.
Another common reason is a passion paradox. This can occur when a founder feels they have taken the business as far as their skillset and interests allow, and they begin to crave a new, more engaging challenge. Similarly, a founder may reach a point where their personal growth trajectory no longer aligns with the company’s trajectory. As the startup scales and evolves, the founder’s role and responsibilities may shift in a way that no longer provides the same fulfilment or opportunity for advancement.
Financial concerns can also prompt a founder’s exit. Not every startup achieves immediate profitability and some founders may choose to leave if the company’s financial outlook does not meet their needs or expectations. Additionally, changes in personal priorities, health considerations, or appealing new opportunities elsewhere can all be valid reasons for a founder to step down.
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