As a purpose based executive search firm, Y Scouts helps companies choose a CEO who shares the company’s passion. But how do you know when to hire a CEO?

Choosing when to hire a CEO is a serious decision for any company. Some companies appoint a chief executive officer right from the start. Others chose to take on a CEO after the company is already established. If you’re deciding when to hire a CEO, here are four signs that your business is in need of a chief executive officer.

1. Your company’s founder lacks business experience
While your company’s founder may have great ideas, he or she may not have the experience necessary to put these ideas into action. Hiring a CEO with business experience can help your company execute decisions and develop new ideas.

In some cases, hiring a CEO with a background in the industry also helps your business appear more professional to people outside the company. If current leadership has difficulty speaking with investors or making business decisions, hiring a savvy CEO may help your company in these areas.

2. Your founder wants to shift their focus
Even if your founder has the ability to run the company as CEO, he or she may not be interested in doing so. If your current leadership wants to focus their energy on other areas of the company, such as product development, it may be time to hire a chief executive officer. A CEO can handle the business aspects of the organization, giving founders a chance to pursue their personal interests within the company.

3. Your company needs a clear leader
If employees appear confused about the company’s goals or operations, your company may benefit from hiring a chief executive officer. A CEO can establish company-wide goals and make them known, guide employees at all levels of the organization, and serve as the leader for your company. Having one leader for your company can alleviate employee confusion and give your company a united voice.

4. You want to encourage growth
Sometimes a business’ founders focus too heavily on keeping the company running and don’t spend enough time innovating. A lack of innovation can lead to stagnation, which can create a serious problem for your business. By hiring a CEO to make sure your company stays afloat, you can spend more time developing ideas and growing your business.

You might be interested in these other posts about hiring a CEO:
What to Look For in a CEO
How to Hire a CEO
15 Remarkable CEO Interview Questions
What to Pay a CEO

How did you decide when to hire a CEO? Let us know in the comments.


Y Scouts is a purpose-based, performance-proven leadership search and development firm focused on transforming how people and organizations connect to work that matters. When you’re ready to hire a new leader, Contact Y Scouts. If you are looking for your next leadership role within a purpose-driven, performance-focused organization, please join the Y Scouts Leadership Community.

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Tips on When to Hire a CEO
When to Hire a CEO

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