Challenges of being a non-founder CEO, and how to overcome them

The role of a tech startup founder has been glamorised for decades. Of course, there is some validity in that: some of the world’s biggest technology success stories continue to be founder-run still today.

Yet with the shift in the global economic landscape, and with the era of record-breakingly-high venture capital investment in tech drying up, the allure of the tech founder is shifting. Anecdotally, I can say with certainty that the world of fintech startups has seen a gradual but noticeable shift in leadership, with many tech founders making way for external professionals to join their teams as CEOs.

I’ve noticed it because I’m that non-founder CEO. To confess, a part of me has always grappled with that role.

I didn’t “found” the company; I’m not a technical expert or product expert; and I wasn’t the visionary entrepreneur. In a culture that has glorified those things, impostor syndrome can come pretty fast (it did for me).

Today, I’m proud to be a non-founder CEO, especially considering the journey I’ve been on starting my career as a secretary, clawing my way into marketing, and eventually reaching the C-suite.

I’ve had my fair share of wins and challenges throughout this journey. I’ve also learned some invaluable lessons along the way.

In this article, I will share my journey and learnings of becoming a Non-Founder CEO.

Challenges of being a Non-Founder CEO

While being a Non-Founder CEO has been great so far, it’s not all rainbows and unicorns. I have faced many challenges as a business leader. The first and foremost is expectations. Being responsible for the entire company and its success or failure is a lot of pressure.

And there are other challenges also

1. Gaining acceptance, establishing credibility, and winning the team’s trust: as a Non-Founder CEO, we must earn the trust and acceptance of various stakeholders, including the founders, board members, investors, shareholders, and employees. This means proving our competence, commitment, and ability to lead the organization effectively rather than taking it for granted that it will be viewed as such. Many Non-Founder CEOs, particularly those who do it for the first time, are doubted, typically more so than the founders, no matter the years of experience. This is a constant and doesn’t even years after taking on the role. Coupled with imposter syndrome, it can be a recipe for disaster. It’s important for us to work on overcoming our own imposter syndrome if we’re going to show any success in this role.
   Solution: Open communication and transparency are key. Demonstrate your deep understanding of the industry, the company’s vision, and its unique value proposition. Engage with the employees and leaders within the organisation, listen to their insights, and bridge the gap between their vision and the practical aspects of scaling. Consistently deliver on promises to build trust over time.
2. Less emotional attachment to the original mission: while this could work in your favor when it comes to new perspectives, it can also be challenging because you need to work twice as hard as the founders to internalize and understand the purpose and values of the organization deeply. This can mean going in a completely different direction than the original founder’s idea and path and convincing everyone to come on the journey with you including the shareholders. Solution: Seek to understand the original perspective and the genesis of the company’s mission. Collaborate to refine and adapt the vision as needed while staying true to the essence. This approach ensures that the company evolves while retaining its foundational principles.
3. Ensuring you have the right team. As a non-founder CEO, assembling a team that shares your vision and values can be challenging. Existing employees may have strong loyalties to the founders or to the old vision and culture, making it essential to foster a sense of unity and purpose. Others may have different ambitions and be extremely competitive. Having a supportive team right from the start can make the difference in your growth and success. Solution: Focus on effective leadership and communication. Clearly articulate your goals and vision for the company, emphasizing how each individual’s role contributes to the bigger picture. Implement strategies for team building and professional growth to create a motivated and engaged workforce.
4. Maintaining agility: Small businesses thrive on agility, but as a fintech scale-up grows, bureaucracy and rigid structures can creep in. Non-founder CEOs must find ways to maintain the agility that contributed to the company’s initial success. Solution Institute flexible decision-making processes that encourage quick responses to market shifts. Promote a culture of adaptability and continuous learning. Regularly evaluate and streamline processes to prevent unnecessary bureaucracy. Present a strategic roadmap that showcases your expertise and the value you bring to the table. Communicate your plans to drive growth, mitigate risks, and maximize returns. Regularly update investors on achievements and milestones, demonstrating your commitment to the company’s success.

Strategies for Success as a Non-Founder CEO

These are a few challenges that came my way while climbing the ladder. Trust me. I thought it was impossible at first. I’ve been reflecting on my learnings from my personal experience, and here are some tactics I employed that helped me succeed:

1. Making the company’s culture and values match your own: showing commitment and passion for the organization’s goals is crucial. In my case, despite lacking traditional CEO skills, I got hired because of my attitude. The board trusted that, in time, I could adopt the necessary skills I didn’t have based on the effort I embodied daily. I worked hard, treated everybody with dignity and respect, and modelled integrity for others.
2. Building strong relationships with founders and stakeholders: establishing open communication channels and regular dialogue fosters trust, transparency, and effective collaboration. Collaborating with founders to leverage their expertise and insights can lead to innovative solutions and accelerate the company’s growth. It did in my case.
3. Fostering a culture of trust and transparency: promoting a supportive and inclusive work environment. Fostering a culture of trust and transparency where employees feel valued, empowered, and encouraged to share their ideas and opinions, as well as leading with kindness, can strengthen a company’s culture and create a brighter world.
4. Communication is key: communicating openly with the team and encouraging feedback. Employees who feel they have a voice and are heard are more likely to be satisfied with leadership. At Chaser, we’ve been holding regular all-staff calls to update everyone on the latest developments from a recession, stability and forecasting perspective. Employees feel reassured and supported when they are kept in the loop. The new generation of CEOs understand that being approachable and friendly with their team members is the key to unlocking innovation and creativity.
5. Getting perfectionism out of the way: not letting my overarching perfectionism get in the way of progress. As Albert Einstein said, “A person who never made a mistake never tried anything new.” Perfectionism can be a major obstacle for any business leader striving for excellence. I embrace failure. It is also key to growth because it allows all team members to learn from their mistakes and support each other.
6. Not letting impostor syndrome hold me back: impostor syndrome is real (I’ve lived it and sometimes still do). I am learning to not let the little voice in my head take hold of me.
7. Practicing empathy: the shoes of those around us might fit differently, and it’s important to have empathy for the perspectives that others bring to the table. If you understand why someone is making a certain request or acting a certain way, you can better respond to them. However, practicing empathy doesn’t mean we shouldn’t challenge people when necessary — in a kind way, of course.
8. Levelling up my energy: I wake up every single day and choose energy. I believe energy is part of why I ended up serving as CEO. When I look back at the last 41 years of my life, no matter what changes and transformations I’ve experienced, one constant has always remained: approaching every job, task, or experience with energy. To me, energy is the force that causes things to move.

Conclusion

Being a Non-Founder CEO in a scaling fintech company comes with its pros and challenges. However, learning to navigate them has put me on the path to success. In that process, I always remind myself of the importance of being kind not only to others, but also to myself, and giving myself time and space to learn, try and fail.

Once you master the ways of combating the challenges that come with being a Non-Founder CEO, nothing can stop you. I am cheering you on from the sidelines!

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Sonia Dorais is the award-winning CEO of Chaser, one of the UK’s fastest-growing FinTech companies.