People in the corporate world dream about becoming a Chief Executive Officer or an executive director since these roles come with high financial rewards, public recognition, and access to exclusive perks such as luxury housing and memberships to prestigious clubs. For most employees, leaving these roles is unthinkable, but some CEOs and top executives from established companies chose to let go of their esteemed position to start their own business.
Take for instance Howard Schultz, who joined Starbucks as an executive in the early 80s. In 1983, a trip to Italy helped him see how espresso bars can serve as third spaces for people to gather and meet, and this led him to quit Starbucks to start his own chain of coffeehouses called Il Giornale. After four years, he returned to buy Starbucks and was appointed as the company’s CEO. Making the transition from top executive to startup founder isn’t easy, but Schultz, along with other innovative business leaders, knew that doing so would allow them to gain freedom, innovate, and have complete control over the company’s vision and strategy. If you’re a business leader who’s thinking about building a company from the ground up, here’s how to chart your path from top executive to entrepreneur.
Create a Plan
Making the transition to the next chapter of your professional life will take more than having the determination to follow through on your plans. First, you’ll need to do extensive market research to confirm if there’s a real need for your business idea. You will also need to see if your idea can generate enough income to sustain your business, and if it has potential for growth and longevity. After that, aim to develop a solid business strategy, and identify a potential location and the organizations or individuals who will be part of your supply chain. You’ll also need to make your business legal by getting the necessary permits and registering it as an LLC, so check out this promotion to get discounts on LLC formation services.
Next, start padding your financial reserves. Save enough money to cover your personal and business expenses for at least one year, and set this fund aside and use it for this purpose only so you won’t have to dig into your personal savings later on. Before leaving your current position, test the waters by building a prototype of your product or service, then put out surveys and create focus groups to get feedback on your business idea. You may also want to set up a pop up store at certain events, festivals, or shopping centers to gauge if there’s real interest in your offerings and if there’s actual intent to purchase.
Prepare for Departure
If your business idea appears to be viable and you’ve dealt with all the roadblocks that could potentially impact your launch, then you’re all set to make a graceful exit from your current role. First, instead of sending a message via email, personally inform the company’s owners and management about your plans, then follow up with a formal resignation letter. You’ll also want to set a clear timeline for your departure, but don’t burn bridges by leaving too soon. As a CEO or top executive, consider offering a notice period of four to five months to show your commitment to a successful transition. Management will let you know when to inform your core team and all other employees about your resignation plans to avoid speculation and maintain transparency within your organization.
During your remaining months in the company, continue to perform your duties diligently and to the best of your ability. This sets a good example for your team and leaves a positive impression with stakeholders and colleagues. Organize your physical files and documents, as well as the ones in your PC so your successor won’t have a difficult time finding them. Don’t forget to document key processes, and train your successor to minimize disruptions and maintain your professional reputation as a business leader.
Cultivate the Right Mindset
You’re about to set off on a new journey, so cultivate the right mindset to banish self-doubt and reduce anxiety. As an executive, it’s likely that you’ve had one or several teams to help you achieve business goals. But as a startup owner, you may have to do things mostly by yourself, so get used to being independent and have an action plan to deal with setbacks along the way. Approach everything with an open mind so you can feel comfortable doing things that you’ve never done before, such as doing legwork or having face-to-face interactions with customers. As a new entrepreneur, you should also expect that you’ll experience frustration and stress, but don’t lose your motivation and go all in to help your venture reach its full potential.
The path from top executive to entrepreneur may be filled with challenges, but the rewards are significant as building a startup allows you to invest your time, knowledge, and energy on something that’s truly meaningful to you. Plan and prepare well to set your venture up for success, and don’t be afraid to step out of your comfort zone to embrace this new phase of your professional life.
